Updated cost of the renewables obligation 2005/2006

Ofgem notice (3 pages, PDF) providing revised and additional data on the operation of the renewables obligation schemes in 2005/2006.

This updates the September 2006 notice. The total cost estimate of £583 million for the UK (England and Wales £523 million, Scotland £53 million and Northern Ireland £6.7 million) is unchanged.

This equates to effective tax rates of about £1.8/MWh (about 2 per cent of household prices) in Great Britain and £0.83/MWh (about 0.7 per cent of household prices) in Northern Ireland.

The volume of aided renewable generation was 12.2 TWh (3.7 per cent of UK energy demand). The effective aid rate was £47.7/MWh, which represents an uplift of the order of 100 per cent on wholesale baseload prices.

The document includes detailed data on the proportion of renewable certificates submitted by each supplier.

For further information or advice please contact Franck Latrémolière.

Filed under Electricity, Ofgem, State aid.

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