[{‘style’: ‘h2’, ‘_key’: ‘cd0c3d83ebb8’, ‘markDefs’: [], ‘children’: [{‘_type’: ‘span’, ‘marks’: [], ‘text’: ‘Background’, ‘_key’: ‘1a8efef719180’}], ‘_type’: ‘block’}, {‘markDefs’: [], ‘children’: [{‘_type’: ‘span’, ‘marks’: [], ‘text’: ‘Payments to electricity generators supported by the Contracts for Difference (CfD) scheme and Feed-in Tariffs (FIT) scheme are funded through a compulsory levy on electricity suppliers in proportion to their share of the electricity sales market.\n’, ‘_key’: ‘8adcb2a48fc50’}], ‘_type’: ‘block’, ‘style’: ‘normal’, ‘_key’: ‘9f2e69d746bf’}, {‘markDefs’: [], ‘children’: [{‘_type’: ‘span’, ‘marks’: [], ‘text’: ‘Electricity suppliers can seek exemption from these costs in respect of renewable electricity generated in an EU member state and supplied to customers in Great Britain (using EU GoOs). These green import exemptions were introduced as a condition of the State aid approvals granted by the European Commission to the CfD and FIT schemes. Now that the UK has left the EU, “the UK Government therefore believes that it is now appropriate to review the continued operation of the CfD and FIT green import exemptions”.’, ‘_key’: ‘7f325e7220430’}], ‘_type’: ‘block’, ‘style’: ‘normal’, ‘_key’: ‘b9e15fa4b6d2’}, {‘markDefs’: [], ‘children’: [{‘_type’: ‘span’, ‘marks’: [], ‘text’: ‘Furthermore, the UK government is of the opinion that “there is currently an asymmetry, whereby the UK recognises EU GoOs issued in the EU for Fuel Mix Disclosure (FMD), while the EU no longer recognises REGOs issued in the UK”.’, ‘_key’: ’49aabcbb3ead0′}], ‘_type’: ‘block’, ‘style’: ‘normal’, ‘_key’: ’66b9393f7c38′}, {‘_type’: ‘block’, ‘style’: ‘h2’, ‘_key’: ‘c29b74c67c4a’, ‘markDefs’: [], ‘children’: [{‘text’: ‘Likely Outcome’, ‘_key’: ‘b918b7a8cacf0’, ‘_type’: ‘span’, ‘marks’: []}]}, {‘markDefs’: [], ‘children’: [{‘_type’: ‘span’, ‘marks’: [], ‘text’: ‘To remedy this lack of reciprocity, the UK intends to cease the recognition of EU GoOs through legislation so that, longer-term, domestic recognition of GoOs issued in EU countries will take place only on a reciprocal basis.’, ‘_key’: ‘0bbfa99e54a90’}], ‘_type’: ‘block’, ‘style’: ‘normal’, ‘_key’: ‘ce828b4b050f’}, {‘children’: [{‘text’: ‘The UK government is also preferring to repeal the CfD/FiT exemptions given to EU GoOs. If the government preferred positions remain unchanged at the end of the consultations then we would be moving towards two different GO systems with limited interaction as summarised below.’, ‘_key’: ‘ad6a93a28d9a0’, ‘_type’: ‘span’, ‘marks’: []}], ‘_type’: ‘block’, ‘style’: ‘normal’, ‘_key’: ‘d43687048e7e’, ‘markDefs’: []}, {‘_type’: ‘flexibleImage’, ‘alt’: ‘UK GO Explicit Proof’, ‘_key’: ’87fe9ea5dd4a’, ‘asset’: {‘_ref’: ‘image-1daf9791605bb1402e13eb9774168d6247620861-898×593-png’, ‘_type’: ‘reference’}, ‘customRatio’: ‘0’}, {‘children’: [{‘_type’: ‘span’, ‘marks’: [], ‘text’: ‘Further, BEIS has proposed two dates for beginning implementation of the proposed changes: 1 October 2022 and 1 April 2023.’, ‘_key’: ’30c495ee79030′}], ‘_type’: ‘block’, ‘style’: ‘normal’, ‘_key’: ‘d635f26c15ab’, ‘markDefs’: []}, {‘style’: ‘h2’, ‘_key’: ‘6cff8f197dce’, ‘markDefs’: [], ‘children’: [{‘_type’: ‘span’, ‘marks’: [], ‘text’: ‘Market Impact’, ‘_key’: ‘dee8dbfd207d0’}], ‘_type’: ‘block’}, {‘_key’: ‘d5f81fd717a4’, ‘markDefs’: [], ‘children’: [{‘_type’: ‘span’, ‘marks’: [], ‘text’: ‘We believe that it is unlikely that UK REGOs would be recognised within the EU in the near term. Hence, once the amendment comes to pass, imports of EU GoOs into the UK would no longer be feasible.’, ‘_key’: ‘c3e18a3b4da00’}], ‘_type’: ‘block’, ‘style’: ‘normal’}, {‘children’: [{‘_type’: ‘span’, ‘marks’: [], ‘text’: ‘As such this would have a big market impact as the UK imported around 70 TWh of EU GoOs or about 12 % of total renewable AIB GoO supply during April 20-March 21. This drop in demand (ex domain cancellations) in the UK would have some bearish impact on the EU GoO markets, although given the growing demand for GoOs in the EU and low water reservoir levels across most parts of Europe ‘, ‘_key’: ‘ea85539332000’}, {‘_type’: ‘span’, ‘marks’: [‘strong’], ‘text’: ‘we expect the bearish impact to be more limited for EU GoOs’, ‘_key’: ‘ea85539332001’}, {‘text’: ‘.’, ‘_key’: ‘ea85539332002’, ‘_type’: ‘span’, ‘marks’: []}], ‘_type’: ‘block’, ‘style’: ‘normal’, ‘_key’: ‘a42c846c29db’, ‘markDefs’: []}, {‘_type’: ‘block’, ‘style’: ‘normal’, ‘_key’: ‘099b5bfa26ea’, ‘markDefs’: [], ‘children’: [{‘_type’: ‘span’, ‘marks’: [], ‘text’: ‘However, for the UK market, we are more ‘, ‘_key’: ‘fcd345bccab70’}, {‘_type’: ‘span’, ‘marks’: [‘strong’], ‘text’: ‘bullish on REGO prices, particularly for CP22 and further’, ‘_key’: ‘fcd345bccab71’}, {‘text’: ‘, as EU GoOs contribute to meeting a significant portion of local demand (EU GoOs contributed to about 40% of total demand for green electricity during CP19 in the UK). ‘, ‘_key’: ‘fcd345bccab72’, ‘_type’: ‘span’, ‘marks’: []}]}, {‘_type’: ‘block’, ‘style’: ‘normal’, ‘_key’: ‘436afd7f6f46’, ‘markDefs’: [{‘_key’: ‘4826d0deab32’, ‘externalLink’: ‘https://www.gov.uk/government/consultations/feed-in-tariffs-and-contracts-for-difference-proposals-relating-to-guarantees-of-origin’, ‘_type’: ‘externalLinkObject’}], ‘children’: [{‘_type’: ‘span’, ‘marks’: [], ‘text’: ‘Please click ‘, ‘_key’: ‘9e67d11622800’}, {‘_type’: ‘span’, ‘marks’: [‘4826d0deab32’], ‘text’: ‘here ‘, ‘_key’: ‘de473b86cd3f’}, {‘_type’: ‘span’, ‘marks’: [], ‘text’: ‘ to read more and contribute to the consultation. The consultation closes on 10 May 2022.’, ‘_key’: ’88a1e671bd62′}]}]