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<p>The Renewables Obligation (RO) places an obligation on UK electricity suppliers
to source a specified proportion of the electricity they supply to customers from
renewable sources. This proportion – called ‘the Obligation’ – is set each year by
government in line with legislation. The scheme is administered by Ofgem, who issue
Renewables Obligation Certificates (ROCs) to generators in relation to the renewable
electricity they generate. Further details of how the scheme operates can be found
on Ofgem’s website:</p><p><a href="https://www.ofgem.gov.uk/environmental-programmes/renewables-obligation-ro?page=1#block-views-publications-and-updates-block"
target="_blank">https://www.ofgem.gov.uk/environmental-programmes/renewables-obligation-ro?page=1#block-views-publications-and-updates-block</a>.</p><p>It
is assumed that the cost of the RO to suppliers is passed on to consumers through
their energy bills. The total cost that can be levied on consumers through the RO
is controlled through DECC’s Levy Control Framework.</p><p> </p><p> </p><p> </p>
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