Fifth Delegated Legislation Committee
11 March 2026
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Fifth Delegated Legislation Committee House of Commons
00:00 - 00:09
Speaker 1
Sorry. Renewables draft renewables obligation amendment order 2026. I call the minister to move the election. Thank
00:09 - 02:35
Speaker 2
you very much, chair. It's a pleasure to serve under your chairship today. And I beg to move that the draft renewables obligation amendment order 2026, which was laid before the House on the February 2 under the affirmative process, be approved. We're all obviously, particularly at this moment in time, acutely aware that households and businesses across the country are feeling the effects of global energy volatility. And that's why this government remains absolutely focused on finding sensible and targeted efficiencies to reduce the costs of The UK energy system, while ensuring that we maintain the investor confidence that is critical to build the system that we need in the future.
This order today is how we operate the costs of the renewables obligation scheme, switching from the retail price index to the consumer price index from the April 1. CPI offers a more accurate reflection of the real world price changes than RPI, which tends to overstate the rate of inflation. In simple terms, what that means is the cost of operating the scheme will grow more slowly in the years ahead, easing pressure on consumers who pay for the scheme through their energy bills. This change forms part of wider efforts to generate efficiencies across the energy system to reduce costs for businesses and to ease the pressure on domestic bills. We're proposing this amendment following a joint public consultation undertaken just by the UK government but with the Scottish government and the Northern Ireland executive who operate their own renewable obligation schemes.
The consultation closed in December and a response was published in January. We recognize that the proposed options generated significant concern and much disagreement from renewable obligation stakeholders. And we understand the points that were raised about the need for policy stability and to ensure that we do have strong investor confidence here in The UK. But it is precisely because the Renewable Obligation Scheme has been such a success, now supporting over 30% of The UK's energy generation, that we must ensure its costs remain proportionate and sustainable as it continues to operate. The scheme has been absolutely instrumental in building the renewable capacity that we rely upon today and we want it to keep doing that, but without placing unnecessary burdens on bill payers.
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