Cost of the 2005/2006 renewables obligation

Ofgem notice (2 pages, PDF) providing high-level information on the size of the UK renewables obligation schemes in the financial year 2005/2006. The total obligation was 18TWh. Given the buy-out price of £32.33/MWh and the likelihood that the obligation will not, overall, have been met, the estimated total cost to consumers of the obligation in 2005/2006 will have been £583 million. This amount is effectively shared across all qualifying renewable generation, with the element of the aid over the buy-out price arising from the recycling of buy-out monies.

For further information or advice please contact Franck Latrémolière.

Filed under Electricity, Ofgem, State aid.

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