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What's the difference between REGOs and ROCs?

  • 14 December 2020
  • 3 replies
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As in the question really, I’ve seen both terms thrown about as though they’re equivalent, but I’m not sure if that’s the case?

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Best answer by woz 14 December 2020, 23:30

hi @testaccount69 

I found the below if it’s any help.

https://www.ofgem.gov.uk/environmental-programmes/ro/about-ro

https://www.ofgem.gov.uk/environmental-programmes/rego/about-rego-scheme

A sort answer isn’t possible but the synopsis is

Renewables Obligation Certificates (ROCs)

ROCs are certificates issued to operators of accredited renewable generating stations for the eligible renewable electricity they generate. Operators can trade ROCs with other parties. ROCs are ultimately used by suppliers to demonstrate that they have met their obligation.

Where suppliers do not present a sufficient number of ROCs to meet their obligation in the reporting period (one year), they must pay an equivalent amount into a buy-out fund. The administration cost of the scheme is recovered from the fund and the rest is distributed back to suppliers in proportion to the number of ROCs they produced in meeting their individual obligation. For more information on ROCs, see Applying for the RO.

 

About the REGO scheme

What is it?

The Renewable Energy Guarantees of Origin (REGO) scheme provides transparency to consumers about the proportion of electricity that suppliers source from renewable generation.

All EU Member States are required to have such a scheme.

Please note:  The Government will ensure that Great Britain and Northern Ireland will continue to issue REGOs and accept Guarantees of Origin (GoOs) from EU member states from 1 January 2021 (i.e. once the implementation period has expired). This will allow electricity suppliers in the UK to continue to use REGOs and EU GoOs to comply with their fuel mix disclosure obligations. We also expect market participants to be able to meet proof of supply requirements in GB whatever the arrangements are following the transition period, including explicit (no-deal arrangements for Continental interconnectors) trading arrangements.

Government has indicated its intention to review this in 2021 so that, longer term, domestic recognition of Guarantees of Origin issued in EU countries will take place only on a reciprocal basis.

 

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Userlevel 7
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hi @testaccount69 

I found the below if it’s any help.

https://www.ofgem.gov.uk/environmental-programmes/ro/about-ro

https://www.ofgem.gov.uk/environmental-programmes/rego/about-rego-scheme

A sort answer isn’t possible but the synopsis is

Renewables Obligation Certificates (ROCs)

ROCs are certificates issued to operators of accredited renewable generating stations for the eligible renewable electricity they generate. Operators can trade ROCs with other parties. ROCs are ultimately used by suppliers to demonstrate that they have met their obligation.

Where suppliers do not present a sufficient number of ROCs to meet their obligation in the reporting period (one year), they must pay an equivalent amount into a buy-out fund. The administration cost of the scheme is recovered from the fund and the rest is distributed back to suppliers in proportion to the number of ROCs they produced in meeting their individual obligation. For more information on ROCs, see Applying for the RO.

 

About the REGO scheme

What is it?

The Renewable Energy Guarantees of Origin (REGO) scheme provides transparency to consumers about the proportion of electricity that suppliers source from renewable generation.

All EU Member States are required to have such a scheme.

Please note:  The Government will ensure that Great Britain and Northern Ireland will continue to issue REGOs and accept Guarantees of Origin (GoOs) from EU member states from 1 January 2021 (i.e. once the implementation period has expired). This will allow electricity suppliers in the UK to continue to use REGOs and EU GoOs to comply with their fuel mix disclosure obligations. We also expect market participants to be able to meet proof of supply requirements in GB whatever the arrangements are following the transition period, including explicit (no-deal arrangements for Continental interconnectors) trading arrangements.

Government has indicated its intention to review this in 2021 so that, longer term, domestic recognition of Guarantees of Origin issued in EU countries will take place only on a reciprocal basis.

 

Userlevel 7
Badge +11

a short answer not a sort answer...my keyboard is pants and my proofreading skills are double pants (trousers)

ROCs are connected to one particular subsidy scheme called renewable obligation (RO) which makes up about 2.5p/kWh of the bill. So only renewable generators that were built under that scheme receive ROCs which are banded depending on how much support that particular technology justifies. Suppliers can acquire these to meet their requirements under RO which grew each year, those that don’t have enough effectively pay a penalty price which is shared amongst those that did. The scheme closed in 2017 though so newer generation is coming in under another scheme called CFD. 
 

REGOs don’t apply to one particular scheme they are provided to all eligible renewable generators and the main reason for them is to track and prove the percentage of renewable generation that each supplier buys and quote in their fuel mix. The greenwashing argument  comes in because you can buy the REGOs very cheaply without the renewable power attached to them and claim it’s renewable. 
 

I might have simplified things a bit here as it is all rather complicated and I am in the industry! 

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