25 January 2021

UK GOs not accepted in EU

The UK’s energy regulator, OFGEM, has made the following statement about GOs and Brexit:

The Government will ensure that Great Britain and Northern Ireland will continue to issue REGOs and accept Guarantees of Origin (GoOs) from EU member states from 1 January 2021 (i.e. once the implementation period has expired). This will allow electricity suppliers in the UK to continue to use REGOs and EU GoOs to comply with their fuel mix disclosure obligations. We also expect market participants to be able to meet proof of supply requirements in GB whatever the arrangements are following the transition period, including explicit (no-deal arrangements for Continental interconnectors) trading arrangements.

Government has indicated its intention to review this in 2021 so that, longer-term, domestic recognition of Guarantees of Origin issued in EU countries will take place only on a reciprocal basis.

This indicates that, as in the case of Switzerland, the UK will continue to allow GOs to be imported to the UK from the European Single Market. It will also seek to secure the mutual recognition of UK REGOs with European GOs, but this will require a bi-lateral agreement between the EU and the UK.