Ofgem reaffirms proof of supply requirements for EU GO recognition

Wednesday, 04 December 2019

Ofgem has reaffirmed ‘Proof of Supply requirements’ as outlined in the guidance document for EU GO Recognition Process, as it received a number of queries relating to meeting proof of supply requirements when purchasing GOs through auction systems.

Under the guidance, no GOs should be presented unless the supplier presenting them is content that the electricity represented by the GOs presented has been supplied to GB and that there is suitable evidence to back this up, including evidence of a contractual chain linking the overseas generator with a GB market participant. The contractual chain should provide details of the specific electricity transactions made and include evidence of sufficient quantities of electricity having been traded from the point of generation to GB.

As in any other scenarios, when GOs are purchased through auctions and the electricity they represent is imported to GB through implicit trading, it is the responsibility of the supplier to verify and gather suitable evidence to demonstrate that:

  1. the portion of electricity represented by the certificates has been purchased by the market facilitator/auction platform and subsequently sold to the relevant European coupled Power Exchange; or
  2. they have contractual arrangements in place with the generating station that confirm that the relevant electricity has been sold to the related European Power Exchange.