The buy-out price for the 2023-24 obligation period is £59.01 per Renewables Obligation Certificate (ROC). This is the amount suppliers will need to pay for each ROC they do not present towards compliance with their 2023-24 obligation.
The mutualisation ceilings for the 2023-24 obligation period are £355,489,397.56 in England and Wales and £35,548,939.74 in Scotland (mutualisation does not apply in Northern Ireland). Mutualisation will be triggered in the event of a relevant shortfall in the buy-out fund. You can find the definition and amounts of relevant shortfall for each obligation period in Article 72 (3) in the Renewables Obligation Order 2015 as amended by the Renewables Obligation (Amendment) Order 2021, and Article 48 (3) and Schedule 3 in The Renewables Obligation (Scotland) Order 2009 as amended by The Renewables Obligation (Scotland) Amendment Order 2023
We update the buy-out price and mutualisation ceilings annually to reflect the average monthly percentage change in the Retail Prices Index (RPI) during the previous calendar year. The average RPI percentage change during the 2022 calendar year was 11.6% (Source: Office for National Statistics).
In line with the current legislation, we update the England and Wales mutualisation threshold (effective from the 2021-22 Compliance Year) and Scotland mutualisation threshold (effective from 2023-24 Compliance Year) annually based on the value of the scheme.
The buy-out prices and obligation levels for recent years are shown in the table below:
The mutualisation thresholds for England & Wales and Scotland for recent years are shown in the table below: