Cost of the renewables obligations in 2006/2007

Ofgem notice (2 pages, PDF) providing some statistical information on the renewables obligation schemes. Information on renewable generation volumes is updated monthly here (Microsoft Excel with macros).

The total cost to electricity customers in the UK of these subsidies to certain generation operators comes to about £719 million, an increase of 23 per cent from the previous year.

The effective consumer tax rates were about £2.2/MWh in Great Britain and £0.86/MWh in Northern Ireland (where the 2006/2007 obligation was 2.6 per cent).

The volume of aided generation was 14.9 TWh, up 22 per cent. The effective aid rate for generators rose by about 1 per cent to £48.3/MWh.

For further information or advice please contact Franck Latrémolière.

Filed under Electricity, Ofgem, State aid.

Reckon LLP is an economics consultancy with expertise in data analysis, economic regulation and competition law.

About Reckon