The Department for Business, Energy and Industrial Strategy (BEIS) confirmed today (29 September 2017) that electricity suppliers will need to produce 0.452 Renewable Obligation Certificates (ROCs) per MWh in the 2018/19 financial year in England, Wales and Scotland.
This is a large increase of 13% from the 2017/18 target which was 0.409 ROCs per MWh. This rise will increase the cost to consumers by an estimated £2.50/MWh from current levels. For a large user with an annual electricity spend of around £1 million, the impact could be an increase of £25,000.
BEIS also highlighted that there is still uncertainty over when the implementation of an exemption for Energy Intensive Industries (EIIs) from the costs of RO will begin.
This exemption, which has been given State Aid, is expected from January 2018, but requires changes in legislation. If it is applied as indicated, the target for 2018/19 would rise to 0.468 ROCs per MWh and add a further £0.70/MWh to energy bills. Similar exemptions are being developed for the Feed-in-Tariff (FiT) and Contracts for Difference (CFD).
How Utilitywise can help
Utilitywise works with businesses large and small to demystify the energy markets. We can ensure your bills are correct when these changes come into effect by checking your bills on an ongoing basis.
For larger organisations, we can also provide insight via Long-term Forecast Reports which can detail predicted rises for all commodity and non-commodity charges up to five years in advance. Contact us today on 01527 511 757 or email firstname.lastname@example.org to find out more.