Octopus Renewables Infrastructure Trust (ORIT) said the potential impact on its portfolio from proposed changes to inflation indexation under the UK’s Renewable Obligation and Feed-in Tariff schemes is expected to be limited, after the government opened a consultation on the issue at the end of October.

The Department for Energy Security and Net Zero is considering two options. The first would accelerate the switch from RPI to CPI indexation for ROC buyout prices and FiT tariff uplifts to March 2026, four years earlier than scheduled. The second would impose a freeze on ROC buyout price indexation at 2025/26 levels from April 2026, before gradually shifting to CPI.

ORIT’s investment manager said its analysis showed only a modest effect on asset values under either scenario, reflecting the trust’s diversified portfolio and relatively small exposure to ROC-linked revenues, which account for less than 30 per cent of projected income over the next five years. ORIT does not earn any FiT revenue.

Indicative estimates suggest a reduction in net asset value of about 1.1 pence per share under the accelerated CPI transition, and about 3.9p per share under the freeze-and-realignment approach.

The manager said it would track the consultation’s progress and provide an update once the government finalises its approach.

Below is an interview with ORIT fund managers David Bird and Chris Gaydon, filmed at the recent half year results