Changes to the Renewables Obligation (Scotland) scheme

Closes 23 Dec 2021

Opened 11 Nov 2021

Overview

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.

Read the consultation paper 

Why your views matter

Consultation is an essential part of the policy-making process. It gives us the opportunity to consider your opinion and expertise.

The Scottish Government welcomes the views on the proposed amendments.

Give us your views

Interests

  • Energy
  • Environment and Climate Change