Non-Fossil Fuel Obligation

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The Non-Fossil Fuel Obligation (NFFO) refers to a collection of orders requiring the electricity distribution network operators in England and Wales to purchase electricity from the nuclear power and renewable energy sectors. Similar mechanisms operated in Scotland (the Scottish Renewable Orders under the Scottish Renewables Obligation) and Northern Ireland (the Northern Ireland Non-Fossil Fuel Obligation).

Five orders were made under the NFFO before the UK government replaced it with the Renewables Obligation. The first order or 'tranche' was on 1 October 1990 with an average price of 7.51 pence per kWh being paid to energy generators, and the fifth and last was in September 1998 at an average of 2.71 pence per kWh.^[1]