Ofgem Sustainability Audits
Some organizations are obliged to make a submission to Ofgem under the Renewables Obligation (RO) and Renewables Heat Incentive (RHI) schemes. These schemes reward the use of renewables for the generation of electricity and heat respectively and payments are made to organizations that comply with the scheme rules. Note that the schemes are closed to New Entrants.
For both schemes there is a requirement for an independent sustainability audit to be carried out in accordance with ISAE 3000 (International Standard for Assurance Engagements). The standard also sets out specific points which must be addressed as part of the audit process. The verified sustainability audit report is used by Ofgem to determine whether the organization has reported the data correctly.
The Renewables Obligation (RO)
The Renewables Obligation came into effect in 2002 in England, Wales and Scotland, with Northern Ireland following in 2005. The RO is the main support mechanism for renewable electricity projects in the UK and places an obligation on licensed UK electricity suppliers to source a growing proportion of the electricity they supply from renewable sources. The scheme covers installations using biomass, biogas and bioliquids. More information can be found here
The RO requires an annual sustainability audit report to be submitted by 30 June, or 31 May for some specific engagements involving bioliquids.
Renewable Heat Incentive (RHI)
From October 2015 a new mandatory requirement for sustainability audits was introduced to non-domestic Renewable Heat Incentive (RHI) participants including all biomethane participants and those who use biomass and biogas, are ‘self-reporting’ and have an installation of 1MWth and above. More information can be found here
The RHI requires an annual sustainability audit report to be submitted within 3 months of the tariff anniversary date rather than a fixed calendar date for all participants. For example, if a participant had a tariff anniversary date of 13 September 2016, their audit report would be due within 3 months of 13 September, i.e. 13 December 2016 and must cover the 12 month reporting period between the tariff date (state date) and the tariff anniversary.
Why choose Lucideon?
- You will be appointed a dedicated lead auditor, who understands your industry and the scheme requirements, and who will act as your single point of contact to coordinate the engagement
- Lucideon auditors understand biomass, bioliquids and waste streams, both onsite generated and through supply chains
- Our robust procedures ensure that verification is performed to the latest industry standards "best practice"
- Lucideon works against a range of international auditing standards including ISAE 3000
- Audits are planned to suit your particular operations and requirements - site visits, head-office visits, year-end or phased throughout the year