Publication - Consultation paper

Renewables Obligation (Scotland) scheme changes: consultation

Published: 11 Nov 2021

UK Government made an amendment in March 2021 to its Renewables Obligation Order 2015 increasing the level of the mutualisation threshold, reducing the likelihood of it being triggered. This consultation seeks views on making the same changes to mutualisation arrangements under the RO(S) legislation to address electricity supplier payment default.

Renewables Obligation (Scotland) scheme changes: consultation
General information

General information

Why we are consulting

Supplier payment default under the Renewables Obligation (RO) support scheme has emerged in recent years. The scheme features a mutualisation mechanism which seeks to recover unpaid bills from other electricity suppliers once they exceed a threshold. The UK Government recently legislated to increase the level of the mutualisation threshold (England and Wales only) to make it harder for mutualisation to be triggered, but this did not address the underlying causes of payment default.

This consultation, seeks align the RO(S) with changes to the RO designed ensuring consistency of approach and a level playing field for suppliers operating within both schemes.

The Scottish Government's proposals could have an impact on scheme participants:

  • the owners of ROS accredited generating stations and PPA off-takers who sell renewables obligation certificates (ROCs) to suppliers and brokers;
  • electricity suppliers who are under an obligation to acquire renewables obligation certificates (ROCs) or make payments into the scheme's 'buy-out' fund;
  • businesses involved in the scheme (e.g. ROC brokers; financiers, advisers etc.);
  • consumers who ultimately fund the scheme through their electricity bills. The Scottish Government is keen to hear the views of all stakeholders on its proposals.

Strategic Environmental Assessment (SEA)

27. We have considered the impact that this proposed change would have on environment and statutory consultees. This consultation does not require a SEA.

Your response

28. The Scottish Government welcomes the views of consultees on the proposed amendments to the ROS as set out above.


Contact

Email: ROS2021@gov.scot