We are consulting on minor changes to the Renewables Obligation (RO) and Customer Credit Balance ringfencing guidance and templates. This consultation follows our decisions to enshrine in licence the requirement for licensees to ringfence their RO receipts attributable to domestic supply and Ofgem’s power to direct licensees to ringfence their Customer Credit Balances when in the consumer interest.
We are proposing to modify the following to add clarity and ease operationalisation:
· Amendments to the Ringfencing the Renewables Obligation Guidance – to provide greater clarity on what is included as part of domestic supply volumes and clarifying arrangements where an element of estimation is required in submitting supply volumes.
· RO Credit Cover Mechanism template amendments – minor changes to either provide additional clarity or improve the readability of the templates.
· Credit Balance Support Arrangement template amendments – mirroring relevant changes to the RO Credit Cover Mechanism Templates and providing additional clarity or improvements to the readability of the templates.
· Amendments to the Guidance on the Operational Capability and Financial Responsibility Principles – to provide further clarity on the calculation of the Protected Amount.
This consultation closes on 7 June 2024. If you wish to respond or have any questions, please email RetailFinancialResilience@ofgem.gov.uk.