The government has confirmed exemptions for energy intensive industries (EIIs) under the Renewables Obligation will enter into effect from 1 April 2018.


On 18 December, the government published the revised Renewables Obligation (RO) for 2018-19. The scheme, which is one of the ways the government looks to incentivise renewables investment, places an obligation on sourcing a proportion of electricity from renewables sources. The level has been lifted to 0.468 Renewables Obligation Certificates (ROCs) per MWh. This is a 3.5% increase for 2018-19 from 0.452ROCS/MWh.

The government estimates EIIs could save £196mn annually from the exemptions. However, small business energy users that are non-exempt will face a £160 increase in costs, while medium-sized businesses and large-sized energy users will face rises of £6,700 and £62,900 respectively.


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