Friday, 15 February 2013

Business Renewable Obligation or RO Charges Explained


Set up in 2002, the Renewable Obligation or RO places a mandatory requirement on licensed electricity suppliers to source a specified and annually increasing proportion of electricity they supply to customers from eligible renewable sources or pay a financial penalty. The RO is currently the main financial mechanism by which the Government incentivises the deployment of large scale renewable electricity generation and the energy industry regulator Ofgem administers the scheme. By the 1st October each year the annual obligation on electricity suppliers is published and comes into effect for the next financial year starting on the 1st April.

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