Standard content for Members only
To continue reading this article, please login to your Utility Week account, Start 14 day trial or Become a member.
If your organisation already has a corporate membership and you haven’t activated it simply follow the register link below. Check here.
A number of unfilled vacancies at Ofgem are to blame for an increase in the forecast costs of administering the Renewables Obligation (RO) scheme, the energy regulator has stated.
Ofgem has published its proposed charges for the administration of the RO scheme for the period April 2023 – March 2024 in which it forecasts a cost of just over £8 million – an increase of 7% on 2022-2023.
The regulator said its costs remain around 0.11% of the scheme’s estimated value.
It further explained: “This year’s forecast represents an increase in the cost of the administration of the RO as compared to last year, noting that 2022-23 saw a decrease of 7% in the forecast cost versus 2021-22.
“These fluctuations can be explained primarily by unfilled vacancies over the past few years caused by a challenging job market.”
Among the reasons behind the cost increase include the fact that Ofgem is developing the Renewable Electricity Register (RER) to replace the Renewables and CHP Register, used to administer the RO, Feed-in Tariff (specifically ROOFIT) and Renewable Energy Guarantees of Origin (REGO) schemes.
Its replacement is designed to be easier to use, provide a better user experience and ensure it is fit for purpose going forward.
Ofgem added: “A review of the project has led to the identification of additional essential deliverables to be included within the minimum scope of the project. This is to ensure that the RER Register is fit for purpose and delivers all the essential functionality that exists on the R&CHP Register.
“Ofgem required additional development resources to recruit a second co-source partner to support and increase the speed of the delivery of the RER project, due to the updated minimum scope of the project. This co-source partner will continue to work on the project this year.”
The regulator said it intends to recover the costs next month from the money paid into the buy-out fund in respect of the 2022-23 scheme year.
Under the RO scheme retailers are obliged to present their obligations by 1 September, with those who miss the deadline having to make late payments by 31 October. Any payments still owed after this point and above the relevant thresholds, currently set at £63.7 million for England and Wales and £1.54 million for Scotland, will be mutualised.
Last year Ofgem confirmed that the mutualisation of missed RO payments had been triggered for the fifth consecutive year after a number of suppliers failed to pay by the late deadline.
Please login or Register to leave a comment.