This will help you better understand Ofgem’s process when dealing with Issuing, revoking, transferring and cancelling REGOs, and the circumstances that may cause one of these things to take place.
Issuing REGOs
If a request for REGOs is submitted appropriately in accordance with Regulation 4 – Schedule 1 and there are no unresolved concerns with the accreditation, then Ofgem shall grant REGOs based on the amount of energy produced by renewable sources.
Ofgem are only obligated to issue REGOs when renewable power is generated, so the issuance of REGOs for heating or cooling is not necessary.
Who are REGOs issued too?
Operators of generating stations receive REGOs.
The individual who received the REGO after it was granted is known as the registered holder up until it is transferred, as stated in the Regulations. A single person may only get a REGO for a given generation; multiple recipients are not permitted.
How many REGOs are issued?
Prior to December 5, 2010, one REGO was awarded for every kWh of power produced by renewable sources. This method is used to compute all requests for REGOs.
Now, as per the 2010 Regulation revisions, which took effect on December 5, 2010, all requests for REGOs are now computed based on one REGO per MWh of renewable source power.
It is not the month of generation that determines the unit of issue; it is the date of the 2010 Regulation change. All REGO claims will be rounded up or down to the closest kWh or MWh entire unit, with any precise half being rounded up. No REGOs will be issued if a period’s energy production is less than half a megawatt hour.
Any additions or revocations will also be made on the basis of one REGO per kWh if, as of 5 December 2010, output data (or the data required to compute a REGO) are updated to data for which REGOs were initially calculated. In the same way, if the REGO was initially computed on the basis of one per MWh, any additions or revocations will likewise be done on the basis of one REGO per MWh17.
No more REGOs shall be granted for that electricity in relation to which a REGO has already been issued and has not been cancelled. If we decide to reissue a REGO after revoking it inadvertently, then we did so in error.
How are REGOs issued?
Each REGO that is produced will have its own guarantee sequence number. For all the renewable power generated by a certain generating station during the time to which the REGO request refers, Ofgem shall issue REGOs progressively in increasing numerical order.
Instead of providing all of the REGO sequence numbers issued, REGOs will be issued in batches that only include the first and last sequence numbers.
However, since each individual REGO will be kept in the Register, it is possible to divide it into several REGOs when it is moved on the Register. The initial REGO sequence number starts at “zero” as of April 1st, 2008. Before that time, REGOs had a beginning range of „one.
When are REGOs issued?
After receiving a request for REGOs, we will review the provided data to see if we are able to provide REGOs. REGOs will be automatically issued into a registered operator’s account. To prevent double counting, they will stay in the Register once issued.
The REGO itself will include information on the number of REGOs issued for the generation period, the generating station accreditation number (which includes the country of generation and the renewable energy source from which the electricity was generated), and the generating station’s source of electricity. However, this information is available in the Certificates report on the Register and is not included in the REGO itself, which will not indicate whether it has been computed using a kWh or MWh of renewable production.
Would a REGO be revoked?
Ofgem states that REGOs would be revoked if any of these points were to occur:
- They are certain that a major detail of the information included in the REGO request is erroneous.
- The REGO was granted based on any false statements, conduct, or undertakings.
- They are confident that the REGO was issued in error, should not have been issued, or was given to the wrong individual.
Also, Ofgem states they must cancel all of the REGOs granted to a producing station if they determine, potentially as a consequence of an audit, that the station was never qualified for them. If a generating station is determined to be ineligible due to a change in the station’s nature after accreditation, all REGOs granted starting from the day the station became ineligible must be revoked.
The Register will be used to cancel all REGOs. If Ofgem is compelled to revoke a REGO, they will notify both the original recipient and the registered holder as soon as they are allowed to do so. The super user of the Register account will receive email notification that REGOs have been cancelled. The REGO’s status will change to “pending revoke” while notice is being issued. At present time, REGOs cannot be transferred. The REGO’s status will be changed to “revoked” when it has been revoked.
Transferring REGOs
According to Regulation 6, if Ofgem is asked to do so by modifying the Renewables and CHP Register, they must transfer REGOs from one registered holder to another. Evidence that identifies the registered holder of a REGO at any given moment may be found in the Renewables and CHP Register.
The renewable electricity and REGOs can be transferred individually. It is possible to transfer an origin assurance from one holder to another, regardless of the energy to which it pertains. Duplicate counting and double disclosure of assurances of origin should be avoided, nevertheless, in order to guarantee that a customer only receives one disclosure for each unit of power produced using renewable energy sources.
How are REGOs transferred?
Within the Register, all REGOs are issued, kept, and transferred electronically. It keeps track of REGO transfers between current and potential registered holders. This prevents double counting and maintains the REGOs’ traceability.
When a REGO has been transferred, the Register will include the recipient’s name, address (if a body corporate, the registered or primary office), and registered number, if a corporation. Revocation, redemption, and retirement of REGOs prohibit transfer.
Cancelling REGOs
The Regulations underwent changes in 2010 that gave REGOs a shelf life. In accordance with its provisions, Ofgem are required to cancel REGOs no later than 16 months following the month of generation, or the first month of generation for an annual REGO for which they were issued. Only REGOs issued starting on December 5, 2010, are subject to the tax. The modification is not retroactive. Therefore, REGOs issued in kWh before December 5, 2010, won’t be revoked.
When a REGO is cancelled, declared cancelled, or revoked, it no longer serves as proof that the power to which it refers was generated using renewable energy sources. It cannot be transmitted or utilised in any way.
What will REGO cancellation look like?
REGOs are valid for one calendar month or one year, from April to March. REGOs will be terminated 16 months after the month, or first month of an annual year, for which the REGO was issued on December 5, 2010. For example, a REGO issued on December 6, 2010, for generation in April 2010, will be terminated at midnight on August 1, 2011, if not earlier revoked, retired, or redeemed. A REGO generation issued on 4 June 2011 for the period April 2010 – March 2011 will be terminated at midnight on 1 August 2011. The shelf life of 16 months is calculated from the first month of generation, not from the day the REGO was issued.
Unless they already hold the status of “revoked,” “retired,” or “redeemed,” all REGOs will be cancelled via the Register and given the status of “expired.” REGOs that have been cancelled cannot be exchanged or used again. Ofgem remove cancelled REGOs from the registered holder’s account to prevent their usage. REGOs can no longer be utilised if they are revoked, retired, or redeemed. As a result, the status of these REGOs will not change to “expired” 16 months after they were generated.