Decision on operational changes to Renewables Obligation and Customer Credit Balance Ringfencing guidance and templates
Related links
- Decision on introducing a minimum capital requirement and ringfencing customer credit balances by direction
- Decision on Strengthening Financial Resilience
- Ringfencing of RO receipts
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We are publishing our decision on making operational changes to Ringfencing the Renewables Obligation (RO) Guidance and RO Credit Cover Mechanism Templates to provide greater clarity and readability. In addition, we are setting out changes to the Credit Balance Support Arrangement Templates to mirror the changes to the RO Credit Cover Mechanism Templates and amend the Guidance on the Operational Capability and Financial Responsibility Principles to provide further clarity on the calculation of the amount of any credit balance to be protected.
The changes we set out in this document take immediate effect.
With regards to RO ringfencing, we intend for licensees to use the new Credit Cover Mechanism Templates for Q1 of the new Renewables Obligation Ringfencing scheme year 2024/2025 onwards, including if they already have protection mechanisms in place for the 2024/2025 scheme year. Credit Cover Mechanism arrangements in place for the 2023/2024 scheme year do not need to be updated to the new templates.
Any Credit Balance Support Arrangements established for CCB ringfencing from this point onwards should be set up using the CCB Credit Balance Support Arrangements Templates published alongside this decision.
Main document
[Decision on operational changes to Renewables Obligation and Customer Credit Balance Ringfencing guidance and templates [PDF, 202.68KB]
Subsidiary documents
[RO Declaration of Trust – Master Version [PDF, 194.26KB]
](https://www.ofgem.gov.uk/sites/default/files/2024-07/RO_Declaration_of_Trust_Master_Version.pdf)
[RO First Demand Guarantee – Master Version [PDF, 196.26KB]
](https://www.ofgem.gov.uk/sites/default/files/2024-07/RO_First_Demand_Guarantee_Master_Version.pdf)
[RO Standby Letter of Credit – Master Version [PDF, 176.09KB]
](https://www.ofgem.gov.uk/sites/default/files/2024-07/RO_Standby_Letter_of_Credit_Master_Version.pdf)
[RO Declaration of Trust – marked up [PDF, 195.80KB]
](https://www.ofgem.gov.uk/sites/default/files/2024-07/RO_Declaration_of_Trust_%28marked_up%29.pdf)
[RO First Demand Guarantee – marked up [PDF, 188.54KB]
](https://www.ofgem.gov.uk/sites/default/files/2024-07/RO_First_Demand_Guarantee_%28marked_up%29.pdf)
[RO Standby Letter of Credit – marked up [PDF, 179.30KB]
](https://www.ofgem.gov.uk/sites/default/files/2024-07/RO_Standby_Letter_of_Credit_%28marked_up%29.pdf)
[Guidance on Ringfencing the Renewables Obligation – Master Version [PDF, 187.45KB]
[Guidance on Ringfencing the Renewables Obligation – marked up [PDF, 189.49KB]
[CCB Declaration of Trust – Master Version [PDF, 177.80KB]
](https://www.ofgem.gov.uk/sites/default/files/2024-07/CCB_Declaration_of_Trust_Master_Version.pdf)
[CCB First Demand Guarantee – Master Version [PDF, 151.75KB]
](https://www.ofgem.gov.uk/sites/default/files/2024-07/CCB_First_Demand_Guarantee_Master_Version.pdf)
[CCB Standby Letter of Credit – Master Version [PDF, 129.85KB]
](https://www.ofgem.gov.uk/sites/default/files/2024-07/CCB_Standby_Letter_of_Credit_Master_Version.pdf)
[CCB Declaration of Trust – marked up [PDF, 171.69KB]
](https://www.ofgem.gov.uk/sites/default/files/2024-07/CCB_Declaration_of_Trust_%28marked_up%29.pdf)
[CCB First Demand Guarantee – marked up [PDF, 144.61KB]
](https://www.ofgem.gov.uk/sites/default/files/2024-07/CCB_First_Demand_Guarantee_%28marked_up%29.pdf)
[CCB Standby Letter of Credit – marked up [PDF, 122.60KB]
[Guidance on the Operational Capability and Financial Responsibility Principles – Master Version [PDF, 417.80KB]
[Guidance on the Operational Capability and Financial Responsibility Principles – marked up [PDF, 532.35KB]
[Erratum Notice – Electricity Supply Licence Condition 4B, Condition 4D and Condition 30 and Gas Supply Licence Condition 4B and Condition 4D [PDF, 125.83KB]
Related links
- Decision on introducing a minimum capital requirement and ringfencing customer credit balances by direction
- Decision on Strengthening Financial Resilience
- Ringfencing of RO receipts