A reminder of the set-up of the consultation

Two schemes currently cohabit in the UK, when it comes to payments to electricity generators:

Both schemes are funded through a compulsory levy on electricity suppliers, in proportion to their share of the electricity sales market.

For FiT, “anyone who had installed an eligible installation that uses one of the following technology types could apply for accreditation: Solar photovoltaic (solar PV), Wind, Micro combined heat and power (Micro CHP), Hydro, and Anaerobic digestion (AD). Installations could have a capacity of up to 5MW, Megawatts (or 2kW Kilowatts for Micro CHP)”. Since February 2016, the number of new installations that could be accredited under the scheme each ‘tariff period’ (for most technology types, every three months) was capped.

Electricity suppliers in the UK can seek exemption from the compulsory levies in respect of renewable electricity generated in an EU member state and supplied to customers in Great Britain (thus using EU GoOs). Since the UK has left the EU, "the UK Government, therefore, believes that it is now appropriate to review the continued operation of the CfD and FIT green import exemptions".

On EU GoOs imports, the document stated that the UK Government’s view was that "there is currently an asymmetry, whereby the UK recognises EU GoOs issued in the EU for Fuel Mix Disclosure (FMD), while the EU no longer recognises REGOs issued in the UK".

As a result, one could have expected that 

we were going towards an end of EU GoOs recognition in the UK

UK REGO end of consultation

Ofgem has divided its answer into two main parts: “Changes to the CfD and FIT Scheme” and “Recognition of EU GoOs”.

Proposed change to the CfD and FIT Scheme

Ofgem supports Option 3 of the Consultation, which stated “Repeal the green import exemptions ensuring scheme costs are equally distributed across suppliers”.

the end of Green Import Exemptions (GIE) occur on April 1st

. As a reminder, GIE is part of CfD and FiT levelisation processes: “In the levelisation process, suppliers must provide information on their exempted supply. This is electricity that is produced from renewable sources outside of the UK and within the EU, that is supplied to customers in Great Britain”.


We expect this measure to have a marginal effect on only a few suppliers (around 15% of them).

UK REGOs imported by suppliers CP19

  2.   Proposed change to the EU GoO recognition

In its consultation document, BEIS proposed to end the recognition of EU GoOs in the UK at the same time as the cease of GIE: whether 1 October 2022 or 1 April 2023.

Ofgem’s opinion is to match up the two measures and therefore to end the recognition of EU GoOs

 in the UK as of 1 April 2023. This will allow REGO generators to prepare the new FMD (Fuel Mix Disclosure) framework. 

Ofgem hasn’t really challenged BEIS proposals to repeal GIE - both FiT and CfD – (i) and end the recognition of EU GoOs in the UK (ii). 

As a result, we assume the below two effects are likely to occur:

Logically, the lack of EU GoOs in the FMD will be felt: during CP19, almost 70 TWh of EU GoOs were imported into the UK (see historical graph below). The period from CP15 to CP19 has seen a Compound Annual Growth Rate (CAGR) of these imports of 35,11%. In CP19, these thus imports represented 67% of the REGOs redeemed. The gap to fill will be substantial: 

we expect both the amount of REGO issuers and issuances to significantly increase

we expect the price for REGOs to increase

 since it is more than likely that the demand increase cannot yet be faced by the same increase in REGO supply. In times of shortage, this will lead to an increase in REGO prices.

UK REGOs imported CP19

The Ofgem response to the BEIS consultation doesn’t amend but confirms BEIS’s proposals. Therefore, we expect these changes to occur at the set date, 1 April 2023. Nonetheless, we all must wait for BEIS final decision, approximately by mid-end of June 2022.

 on this specific issue, to help our customers that show an interest in the UK GoO market to better understand the new rules to be set. This Webinar will be held by mid-end of June, with the special presence of a member of BEIS that will enlighten all attendees on the new rules and answer questions.

The exact time and date of this Webinar will be released soon, stay up to date on our Website and LinkedIn.

For any questions on the UK market and/or the Webinar, do not hesitate to contact me at 

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A platform with real-time GO data and insights, reporting prices and market fundamentals for Wind, Hydro, Solar, Biomass, Biomethane and RGGOs. 

Our community offers access to webinars, discussions and updates from industry leading experts and analysts. 

on the possible removal of the recognition of EU GoOs in the UK and FiT and CfD levy exemptions (read our article 

). After having closed the consultation on May 10th, Ofgem released its conclusions on this consultation, to serve as guidance in BEIS’s final decision-making process. The outcome from BEIS will be known, according to our sources, approximately by the end of June 2022.

Nonetheless, we can still analyse without further delay the results of the consultation.

Our Platform gives you unfettered access to price benchmarking, analytics, new and insights covering the green certificates markets. 

Request a trial now and someone from our team will be in touch with you to learn more about your involvement in the markets and to answer any questions you may have.

News

UK presumably to remove GIE and EU GoOs recognition by 1 April 2023

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