Renewables Obligation Supplier Guidance - CPI Replaces RPI

Ofgem amended its Renewables Obligation supplier guidance to change the inflation index used for annual adjustments to the buyout price and mutualisation ceiling. The index has shifted from the Retail Prices Index (RPI) to the Consumer Prices Index (CPI). This affects how buyout prices and mutualisation ceilings are adjusted annually for inflation.

Suppliers participating in the RO scheme should review the updated guidance and ensure their internal systems and processes for calculating buyout prices and mutualisation ceilings reflect the switch from RPI to CPI. No specific compliance deadline or penalties were stated in the document.