The price energy companies will have to pay if they can not meet their renewable energy requirements is set to rise, according to Ofgem.
While the exact figure will not be known until April when the Renewable Obligation Order 2009 comes into effect, the energy regulator has said that it will increase to £37.19 per megawatt hour (MWh) compared to the present price of £35.76.
Energy firms currently present Renewable Obligation Certificates (ROC) – which show that it has sourced
energy from renewables – to cover 9.1 per cent of their energy supply, with any shortfall from their actual production made up by buying more ROCs from firms which generate more renewable energy than they are obliged to.
Starting in April, Ofgem expects the figure to rise to 9.7 per cent, as the government continues to try to reduce emissions and boost renewables.
According to the Committee on Climate Change, the power sector accounts for 37 per cent of UK CO2 emissions.
Figures from the last period of disclosure show that we are the major power firm with the greatest proportion of renewables in our power mix.
Data shown at electricityinfo.org shows that we source 11.2 per cent of energy from renewables, ahead of the other 'Big Six'.
