To ask Her Majesty's Government whether they are reviewing the valuation basis and value of renewables obligation certificates; and whether the terms of certificates issued can be retrospectively amended.
The value of renewable obligation certificates (ROCs) to an electricity supplier is assumed to average at the buyout price (which a supplier can pay to discharge its obligation) plus 10%. The buyout price is calculated by Ofgem in accordance with article 43 of the Renewables Obligation Order 2009. The Government have no plans to review these provisions. The actual value of a ROC to a generator will depend on supply and demand for the ROCs during the obligation period in question, and the individual arrangements reached between generators and the supplier or other person to whom they sell the ROC.
Once a ROC has been issued it can be revoked by Ofgem in certain circumstances. The powers for the renewables obligation include powers to make an order varying the number of ROCs that can be carried over to the following obligation period and powers to vary the level of support, including for existing generating stations. However, for most technologies we have a grandfathering policy of not changing the level of support for accredited generating capacity.