In April 2023, Ofgem announced a decision to strengthen financial resilience by requiring energy licensees to ringfence Renewables Obligation (RO) receipts for domestic supply starting from the 2023/24 scheme year.
Licensees must provide evidence of ringfencing for Quarters 1 and 2 by November 2023 and each subsequent quarter.
Based on initial feedback, the energy regulator has made minor changes to the RO Credit Cover Mechanism Templates and guidance to improve the data and credit cover submission process.
Similar adjustments have been made to the templates for Customer Credit Balance (CCB) ringfencing to enhance clarity and ease of use.
Effective immediately, licensees must use the new templates for the 2024/25 scheme year.
Existing arrangements for the 2023/24 scheme year do not require updating.
Any new CCB ringfencing arrangements should use the updated templates, Ofgem said.
