To ask the Secretary of State for Energy and Climate Change with reference to the answer of 25 November 2008, Official Report, column 1465W, on electricity: per capita costs, what method for calculating the annual cost of the Renewables Obligation per customer was used. (242618)

Ofgem base the calculation on an assumption about the amount of electricity used per annum by a household multiplied by the buyout price for the renewables obligation for that year multiplied by the percentage obligation for that year. This calculation gives the upper limit to the cost of the renewables obligation for that year.