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Renewables Obligation

Volume 463: debated on Tuesday 17 July 2007

To ask the Secretary of State for Business, Enterprise and Regulatory Reform what the annual cost was of the renewables obligation to the average household in 2006; and what the projected cost is of the obligation to the average household by 2010. (148559)

Ofgem has calculated the annual cost to the average household in 2006-07 to be £7.35. This is projected to rise to £11.41 by 2010-11 at 2006 prices.

To ask the Secretary of State for Business, Enterprise and Regulatory Reform what his estimate is of the increase in renewable energy generation since the implementation of the renewables obligation; what the average cost has been per household (a) in total and (b) per kilowatt hour generated; and what estimate he has made of the cost of delivering the same increase through different feed in tariff mechanisms. (148724)

According to the digest of United Kingdom energy statistics 2006, renewables electricity generation from RO-eligible sources has increased from 5.75 TWh in 2002 to 13.17 TWh in 2005.

Ofgem has calculated the cumulative cost of the RO from 2002-03 to 2005-06 (the last date for which figures are currently available) to consumers to be £21.81 per household (in 2002 prices).

Ofgem has also calculated the overall UK price per kWh of electricity generated by the RO. Between 2002-03 and 2005-06 it fell from 5.1 pence per kWh to 3.9 pence per kWh.

As we have said in the “Meeting the Energy Challenge”,

“while a number of other EU member states have used mechanisms such as feed-in tariffs, it is hard to draw firm conclusions as to the effectiveness of these mechanisms from international comparisons, as other forms of support also vary”.