These are questions that are being asked over and over again.
With a strong focus on renewable energy in the UK, REGOs are being more popular than ever. So, we decided to create this article to help you understand REGOs for suppliers. Let’s take a look.
REGO Background
The Renewable Energy Guarantee of Origin (REGO) scheme was established by the Department for Business, Energy and Industrial Strategy (BEIS) to provide consumers with an assurance that the the electricity they purchase is generated from renewable sources.
REGOs has been in place since April 2017, as a legal requirement under the EU Renewable Energy Directive (RED). They are available to all consumers who purchase electricity from their supplier.
The REGO scheme applies to electricity generated in Great Britain only and does not cover electricity generated outside the UK.
The renewable energy sources used to generate electricity can vary greatly depending on where you live. In some areas, wind is more prevalent than others – for example, around 80% of all renewable generation in Scotland is from wind power plants.
In contrast, England has more solar power plants and solar farms than any other part of Great Britain: around 20% of all renewable generation comes from this source alone.
For more information about REGOs, how you can create an account and the other functions of the Register, check the links below:
https://www.renewablesandchp.ofgem.gov.uk/
http://www.ofgem.gov.uk/Sustainability/Environment/RCHPreg/Pages/RCHPreg.aspx
What is a REGO?
A REGO certificate is a document that proves that the electricity you are buying has come from an eligible renewable energy source. The certificate can be bought or sold by retailers as part of their normal business activities. It is required that each EU Member State must have this type of scheme.
The REGO certificate is issued by accredited electricity retailers and ensures that retailers are transparent about the origin of the electricity they sell, and allows them to demonstrate their commitment to renewable energy.
One of the main uses of REGOs is to display the renewable energy source origin, as well as for the Fuel Mix Disclosure (FMD). After the REGO has been issued, it can be traded with or without the electricity to which it was issued.
Acting as an agent
For those with questions about agents, then we have the answers. Agents are used for the administrative functions of the REGO scheme, but it can be complicated. Let’s take a look at what an agent may do, and how to provide Ofgem with details of an appointed agent.
What the legislation says
There is no direct address in the REGO Regulations regarding the appointment of agents. As it stands, they do not expressly preclude or permit the appointment of agents.
Agents may be appointed to assist with the administrative functions of the REGO scheme. However, the operator of the generating station holds full responsibility for the agent’s actions.
The terms of the appointment must be in accordance with the relevant requirements of the REGO scheme and the responsibility lies with the agents to meet these legislations.
What agents could have to do
Agents have a wide range of tasks to do when it comes to REGOs. This could be managing some, or all of the administrative tasks involved to enable the operator of a generating station to receive, transfer, retire and use REGOs.
Some of these responsibilities include signing declarations, submitting applications as well as submitting output data. Agents cannot be issued a REGO that is used for the benefit of another operator or their own use.
To sign declarations, agents must have the necessary knowledge to be able to do so on behalf of the operator of the generating station. This means the agent will have to seek information and assurances from the operator.
Information in writing from the authorised signatory of the generating station must be obtained to make sure that a full audit trail exists.
Registering agents
The operator of a generating station holds the responsibility of selecting the agent. After the selection is done, written notification from the operator of the generating station is required by Ofgem.
On this written notification, it should be stated that it has authorised an agent to act on its behalf. There is a standard template that can be used which is available by following this link www.ofgem.gov.uk
Contacting Ofgem
After the appointment of an agent, Ofgem will then consider the agent as the sole contact for the administrative processes specified by the operator of the generating station.
Ofgem will then send all correspondence and information in respect of the specified tasks to the agent. From this point on, the agent holds the responsibility of informing the operator in full concerning their specified tasks.
In addition, the operator of a generating station has the responsibility of ensuring that the agent provides all the information required under the REGO Regulations and the related administrative processes to Ofgem.
What about agents acting for more than one generating station?
Agents can represent as many generating stations as they like, as there is no limit on the number. However, for each generating station represented, the agent must act individually.
Therefore, applications for accreditation and requests for REGO issues are made per generating station and this may not be amalgamated. Ofgem issues REGOs based on the output of individual generating stations. Meanwhile, output submissions cannot be amalgamated for a portfolio of generating stations.
Disputes
Ofgem state that disputes between agents and operators of generating stations are not their concern. It is insisted that these are not matters for Ofgem.
Terminating an agency agreement
Within 14 days of the termination of the agreement, Ofgem should be informed by the operator of a generating station in writing. Ofgem will continue to treat the appointed agent as the agent of the operator until there is written notification.
The operator of the generating station has the ability to select another agent or manage matters itself, however, it must send written notification to Ofgem regarding their preferred course of action, as well as any details of a new agent.