A transitional arrangement for existing power purchase contracts under the Non Fossil Fuel Obligation is included in the Utilities Bill going through parliament. The bill gives government the power to set a renewables obligation on all electricity suppliers (main story). NFFO and Scottish Renewables Obligation (SRO) contracts will be honoured. A transition mechansim is being developed by the Non-Fossil Purchasing Agency (NFPA) -- the government body responsible for awarding NFFO contracts -- and renewable energy generators. Of the options being considered for maintaining contracts, the front runner is an auction of NFFO contracted capacity, believes Andrew Wood of the NFPA. Output bought by suppliers through the auction would count towards meeting their obligations to include 10% renewables in their power supply portfolios, or buy green certificates or participate in the buy-out option.
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