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EDF Energy - Finance

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(£m)<br />

The cost of the Renewable Obligation<br />

for the major Utilities<br />

• The total value of ROC + Buy Out fund is estimated at £1.4bn for 2010<br />

• The cost of the renewable obligations to suppliers in 2016 will be c.2.2bn<br />

• Today, the RO is only c.3% of typical consumer bills, but will continue<br />

to increase with the rising obligation<br />

Comparative But-Out costs per major Supplier in the UK in 2016<br />

Buy-Out<br />

costs<br />

500<br />

400<br />

300<br />

200<br />

100<br />

0<br />

Centrica<br />

Source: <strong>EDF</strong> <strong>Energy</strong><br />

<strong>EDF</strong><br />

<strong>Energy</strong><br />

EON RWE SSE Scottish<br />

Power<br />

Based on current RO price escalated at 2.5% p.a. and current supplier volumes increased at 2.5% volume increase p.a.

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