R

Ratchet/Ratcheting

A ratchet is a commercial penalty charge applied to any daily metered supply point which exceeds the agreed daily capacity during the winter period (October to May). Ratcheting is used to deter large energy consumers against setting their daily capacity below what is actually required during the winter period.

Find out more about ratchet charges

Regulator

OFGEM is responsible for regulating the UK’s gas and electricity industries. Energy regulators have the power to enforce legislation and regulations on market participants — helping to ensure a fair and competitive market for energy customers.

Renewable Energy Certificates

Renewable Energy Certificates, also known as RECs and ‘green certificates’, represent the power produced from internal energy projects, usually by large industrial businesses. RECs can be traded, bought or sold, and are separate to commodity electricity.

Renewable Obligation (RO)

Renewable Obligation (RO) is the government’s primary initiative for the promotion of renewable energy practices. The programme is mandatory under the Climate Change Levy exemption scheme, and means that all electricity suppliers must contribute a certain amount of their electricity sales revenue from accredited renewable sources.