Explanatory note

This Order amends the Renewables Obligation Order (Northern Ireland) 2009 (SR 2009/154) (“the 2009 Order”).

The 2009 Order imposes on all electricity suppliers licensed under the Electricity (Northern Ireland) Order 1992 that supply electricity in Northern Ireland, an obligation (“the renewables obligation”) to produce a specified number of renewables obligation certificates (“NIROCs”) in respect of each megawatt hour of electricity they supply to customers in Northern Ireland during periods known as “obligation periods”.

The Northern Ireland Authority for Utility Regulation (“Utility Regulator”) are responsible for the administration of the renewables obligation issuing NIROCs to accredited renewable electricity generators based on their output. These certificates are sold to electricity suppliers with or without the associated renewable electricity.

In lieu of each NIROC, suppliers can also make a payment to the Utility Regulator at a set price (the “buy-out price”). The buy-out price is indexed to inflation and has changed in line with the retail prices index each year since the renewables obligation came into force. This Order provides for the buy-out price to increase (or decrease, as the case may be) in line with the consumer prices index instead of the retail prices index for all obligation periods from 1st April 2026 onwards.

A full impact assessment of the effect that this instrument will have on the costs of businesses, voluntary bodies and community bodies is available alongside this instrument on www.legislation.gov.uk and from the Department for the Economy NI, 39-49 Adelaide Street, Belfast, BT2 8FD.