Renewables obligation scheme: changes to energy supplier payments
The renewables obligation scheme provides support for generators of renewable electricity. The costs of the scheme are met by energy suppliers. These costs are then passed on to consumers. When suppliers fail to meet their obligations under the scheme, the resultant shortfall is mutualised if it reaches a certain threshold and must be met by other suppliers. The Renewables Obligation (Amendment) Order 2021 would raise the shortfall threshold which triggers this mutualisation process.
