Renewables Obligation Mutualisation Costs
Renewables Obligation (RO) mutualisation costs for the 2018-19 compliance year are expected to be distributed in the coming months to customers who have ‘pass through’ type electricity contracts.
In November, Ofgem revealed that a number of suppliers failed to discharge their 2018-19 RO in full by the late payment deadline and a ‘relevant shortfall’ had been reached.
Under the RO rules, compliant suppliers are required to pick up the shortfall. Therefore, those customers with contracts that pass through these costs from Ofgem can expect to see an additional one-off charge on their invoices for the 2018-19 period.
If you need help with understanding RO mutualisation or managing and validating your electricity invoices, please get in touch with us, we are happy to help!