British Industrial Competitiveness Scheme (BICS): changes to the Renewables Obligation (Scotland) Order 2009

5. Calculating the total number of ROCs required for a supplier to discharge its annual renewables obligation

Under the ROS, electricity suppliers must provide Ofgem with the following:

• estimates of the amount of electricity they have supplied to customers in Scotland during each month of the obligation period by 1 June following that period.
• figures showing the amount of electricity it has actually supplied to customers in Scotland during each month of an obligation period by 1 July following that obligation period.

The total number of SROCs that a supplier will need to produce to Ofgem to discharge its renewables obligation is calculated after the end of the obligation period and would be based on the amount of non-BICS excluded electricity and non-EII excluded electricity it has supplied to customers in Scotland (and England, Wales and Northern Ireland) during that obligation period multiplied by the obligation level for that country. ‘BICS excluded electricity’ refers to up to 100% (subject to pro-rating) of electricity supplied to eligible BICS businesses in Scotland.

Ofgem’s process for calculating each supplier’s obligation and how electricity suppliers must comply with their obligations is set out in Ofgem’s Renewables Obligation: guidance for electricity suppliers.^[1]

To enable Ofgem to calculate electricity suppliers’ individual obligations with account of the ROS exemption for BICS eligible businesses, electricity suppliers are likely to need to provide Ofgem with information on:

(ii) total electricity supplied; and

(ii) BICS excluded electricity supplied in addition to EII excluded electricity. Ofgem’s guidance does not currently take account of the exemption for BICS eligible businesses and will be updated in due course.