Government wants to fix the price of old green certificates: what it means for your electricity bill

A chunk of every business electricity bill still pays for older renewable power stations. That support runs through the Renewables Obligation, a scheme that has been closed to new projects since 2017 but keeps paying until 2037. On 3rd November 2026, the Department for Energy Security and Net Zero opened a consultation on how that support should work for the rest of its life.

What is being proposed

Today, generators get tradable certificates (ROCs) and sell them to suppliers. Prices can bounce around. The government wants to replace that market with Fixed Price Certificates: a central body would buy certificates from generators at a set price, and suppliers would pay a levy based on how much electricity they sell. Trading between generators and suppliers would stop.

Nothing changes overnight. The consultation says a switch would happen no sooner than the 2028/29 scheme year (from April 2028), and the final timing is still to be decided. Views are due by 11:59pm on 12th January 2027.

Why government is doing it

As more stations drop off the scheme towards 2037, the certificate market is expected to get thinner and more volatile. A fixed price is meant to give generators clearer income, cut the risk of suppliers defaulting on certificate payments, and create room to keep scheme costs steadier for bill payers. Utility Week noted that the consumer impact will depend on how that fixed price is set, so the detail matters.

What it means for a UK business owner

You do not need to respond to this consultation unless you are a generator or supplier. But the Renewables Obligation is already baked into the non-commodity part of many business tariffs. A clearer, levy-based cost for suppliers could make that line on your bill a little more predictable once the change lands. It does not remove the charge, and it will not rewrite contracts you have already signed.

If your contract is due for renewal before 2028, ask your supplier or adviser how policy costs are treated in the quote, and keep an eye on government decisions after January. If you would like a plain-English look at what is driving your unit rate and standing charge today, I am happy to have a quick, no-obligation chat.