|
|
<p>The costs of the renewables obligation (RO) for 2011-12 and 2012-13, and the corresponding annual spending review envelope, are shown in the table. In both years, RO costs were within the annual Levy Control Framework envelopes for the scheme.</p><p><table><thead><tr><td valign="top">£million<br /></td></tr><tr><td valign="top" /><td valign="top">Nominalcost<br /></td><td valign="top">LevyControl Framework RO spending reviewenvelope<br /></td></tr></thead><tbody><tr><td valign="top">2011-12<br /></td><td valign="top">1,458<br /></td><td valign="top">1,750<br /></td></tr><tr><td valign="top">2012-13<br /></td><td valign="top">1,991<br /></td><td valign="top">2,156<br /></td></tr></tbody></table></p><p>These figures are inclusive of the administrative costs to Ofgem of the renewables obligation. They have been calculated by multiplying the annual buy-out price and the out-turn obligation for the given year, based on data supplied by Ofgem.</p><p>The estimated cost of the RO in 2013-14 is £2,583 million against a spending review envelope of £2,556 million. Across the three years, aggregate RO expenditure is currently forecast to be £430 million (7%) below the aggregate spending review envelope for the same period.</p> |