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.
The original intention was to provide financial support to the UK nuclear power generators, which continued to be state-owned.
[2] The proposals were enlarged in scope before the obligation was brought into operation in 1990 to include the renewable energy sector.
As a result of these arrangements, the Non-Fossil Fuel Obligation has been generating a trading surplus, expected to have reached £500m by 2008.
The government have been criticised for siphoning off funds from this surplus to contribute to the exchequer, instead of using it to support renewable energy in other ways.