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(a) that the generating station, or, in the case of a certificate issued
otherwise than to the operator of a generating station, a
generating station in Northern Ireland specified in the
certificate, has generated from renewable sources the amount of
5electricity stated in the certificate, and

(b) that it has been supplied by a Northern Ireland supplier to
customers in Northern Ireland.

(5) The matters within this subsection are—

(a) that two or more generating stations in Northern Ireland have,
10between them, generated from renewable sources the amount
of electricity stated in the certificate, and

(b) that it has been supplied by a Northern Ireland supplier to
customers in Northern Ireland.

(6) The matters within this subsection are—

(a) 15that the generating station, or, in the case of a certificate issued
otherwise than to the operator of a generating station, a
generating station in Northern Ireland specified in the
certificate, has generated from renewable sources the amount of
electricity stated in the certificate, and

(b) 20that the electricity has been used in a permitted way.

(7) The matters within this subsection are—

(a) that two or more generating stations in Northern Ireland have,
between them, generated from renewable sources the amount
of electricity stated in the certificate, and

(b) 25that the electricity has been used in a permitted way.

(8) For the purposes of subsections (6) and (7), electricity generated by a
generating station, or generating stations, of any description is used in
a permitted way if—

(a) it is used in one of the ways mentioned in subsection (9), and

(b) 30that way is specified in the order as a permitted way—

(i) in relation to all generating stations, or

(ii) in relation to generating stations of that description.

(9) Those ways are—

(a) being consumed by the operator of the generating station or
35generating stations by which it was generated;

(b) being supplied to customers in Northern Ireland through a
private wire network;

(c) being provided to a distribution system located in Northern
Ireland, or to transmission system located in Northern Ireland,
40in circumstances in which its supply to customers in Northern
Ireland cannot be demonstrated;

(d) being used, as respects part, as mentioned in one of paragraphs
(a), (b) or (c) and as respects the remainder—

(i) as mentioned in one of the other paragraphs, or

(ii) 45as respects part, as mentioned in one of the other
paragraphs and as respects the remainder as mentioned
in the other;

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(e) being used, as respects part, as mentioned in paragraph (a), (b),
(c) or (d) and as respects the remainder by being supplied by a
Northern Ireland supplier to customers in Northern Ireland.

(10) Paragraph (9) of Article 54 of the Energy (Northern Ireland) Order 2003
5(meaning of supply of electricity through a private wire network)
applies for the purposes of subsection (9)(b) as it applies for the
purposes of paragraph (8)(b) of that Article.

32U Sections 32S and 32T: supplemental provision

(1) A certificate purchase order may provide—

(a) 10that no certificates are to be issued in respect of electricity
generated in specified cases or circumstances, or

(b) that certificates are to be issued in respect of a proportion only
of the electricity generated in specified cases or circumstances.

(2) In particular, provision made by virtue of subsection (1) may specify—

(a) 15electricity generated using specified descriptions of renewable
sources,

(b) electricity generated by specified descriptions of generating
station, or

(c) electricity generated in specified ways.

(3) 20Provision made by virtue of subsection (1)(b) may include—

(a) provision about how the proportion is to be determined;

(b) provision about what, subject to such exceptions as may be
specified, constitutes sufficient evidence of any matter required
to be established for the purpose of determining that
25proportion;

(c) provision authorising the relevant authority, in specified
circumstances, to require an operator of a generating station to
arrange—

(i) for samples of any fuel used (or to be used) in the
30generating station, or of any gas or other substance
produced as a result of the use of such fuel, to be taken
by a person, and analysed in a manner, approved by the
relevant authority, and

(ii) for the results of that analysis to be made available to the
35relevant authority.

(4) In the case of electricity generated by a generating station fuelled or
driven—

(a) partly by renewable sources, and

(b) partly by fossil fuel (other than waste which constitutes a
40renewable source),

only the proportion attributable to the renewable sources is to be
regarded as generated from such sources.

(5) A certificate purchase order may specify—

(a) how the proportion referred to in subsection (4) is to be
45determined, and

(b) the consequences for the issuing of certificates if a generating
station of the type mentioned in that subsection uses more than
a specified proportion of fossil fuel during a specified period.

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(6) Those consequences may include the consequences that no certificates
are to be issued in respect of any electricity generated by that
generating station during that period.

(7) A certificate purchase order may provide that ownership of a certificate
5may be transferred—

(a) only to persons of a specified description;

(b) only if other specified conditions are met.

(8) A certificate purchase order may specify circumstances in which the
relevant authority may revoke a certificate before the certificate
10purchase obligation in respect of the certificate is discharged (whether
before or after the certificate is presented for payment).

(9) A certificate purchase order must—

(a) prohibit the issue of GB certificates certifying that electricity has
been supplied to customers in Northern Ireland by virtue of
15section 32S(5) or (7) where the Northern Ireland authority has
notified the Authority that it is not satisfied that the electricity
in question has been supplied to customers in Northern Ireland,
and

(b) require the revocation of such a certificate if the Northern
20Ireland authority so notifies the Authority at a time between the
issue of the certificate and its presentation for payment for the
purposes of the certificate purchase obligation.

(10) A certificate purchase order may make provision requiring a person to
whom a certificate is issued to pay to the relevant authority an amount
25equal to any amount that has been paid in respect of the certificate
under the certificate purchase obligation if it appears to the authority
that—

(a) the certificate should not have been issued to that person, and

(b) it is not possible to secure the recovery of such an amount by
30refusing to issue another certificate to the person.

(11) Provision under subsection (10) may include provision about
enforcement and appeals.

(12) The Authority must pay any amounts it receives by virtue of subsection
(10) into the Consolidated Fund.

(13) 35The Northern Ireland authority must pay any amounts it receives by
virtue of subsection (10) into the Consolidated Fund of Northern
Ireland.

32V Certificate purchase orders: amounts of electricity stated in certificates

(1) A certificate purchase order may specify the amount of electricity to be
40stated in each certificate, and different amounts may be specified in
relation to different cases or circumstances.

(2) In particular, different amounts may be specified in relation to—

(a) electricity generated from different renewable sources;

(b) electricity generated by different descriptions of generating
45station;

(c) electricity generated in different ways.

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(3) In this section “banding provision” means provision made in a
certificate purchase order by virtue of subsection (1).

(4) Before making any banding provision, the Secretary of State must have
regard to the following matters—

(a) 5the costs (including capital costs) associated with generating
electricity from each of the renewable sources or with
transmitting or distributing electricity so generated;

(b) the income of operators of generating stations in respect of
electricity generated from each of those sources or associated
10with the generation of such electricity;

(c) the effect of paragraph 19 of Schedule 6 to the Finance Act 2000
(supplies of electricity from renewable sources exempted from
the climate change levy) in relation to electricity generated from
each of those sources;

(d) 15the desirability of securing the long term growth, and economic
viability, of the industries associated with the generation of
electricity from renewable sources;

(e) the likely effect of the proposed banding provision on the
number of certificate issued by the relevant authority, and the
20impact this will have on consumers;

(f) the potential contribution of electricity generated from each
renewable source to the attainment of any target which relates
to the generation of electricity or the production of energy and
is imposed by, or results from or arises out of, an EU obligation.

(5) 25For the purposes of subsection (4)(a), the costs associated with
generating electricity from a renewable source include any costs
associated with the production or supply of heat produced in
connection with that generation.

(6) For the purposes of subsection (4)(b), an operator’s income associated
30with the generation of electricity from a renewable source includes any
income connected with—

(a) the acquisition of the renewable source;

(b) the supply of heat produced in connection with the generation;

(c) the disposal of any by-product of the generation process.

(7) 35After the first order containing banding provision is made by the
Secretary of State, no subsequent order containing such provision may
be made by the Secretary of State except following a review held by
virtue of subsection (8).

(8) A certificate purchase order—

(a) 40may authorise the Secretary of State to review the banding
provision at such intervals as are specified in or determined in
accordance with the order, and

(b) may authorise the Secretary of State to review the whole or any
part of the banding provision at any time when the Secretary of
45State is satisfied that one or more of the specified conditions is
satisfied.

32W Section 32V: transitional provision and savings

(1) This section applies where a certificate purchase order contains
banding provision.

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(2) The order may provide for the effect of any banding provision made in
an earlier such order to continue, in such circumstances as may be
specified, in relation to—

(a) the electricity generated by generating stations of such
5descriptions as may be specified, or

(b) so much of the electricity as may be determined in accordance
with the order.

(3) The order may provide for—

(a) the effect of any banding provision made in a renewables
10obligation order by virtue of section 32D(1) to apply, in such
circumstances as may be specified, in relation to GB certificates
as it applied in relation to renewables obligation certificates;

(b) the effect of any banding provision made in an order under
Article 52 of the Energy (Northern Ireland) Order 2003, by
15virtue of Article 54B(1) of the Order, to apply, in such
circumstances as may be specified, in relation to NI certificates
as it applied in relation to Northern Ireland RO certificates.

(4) Section 32V(4) and (7) do not apply in relation to provision of the kind
mentioned in subsection (2) or (3) above.

(5) 20Subsection (7) applies to a generating station in respect of which a
statutory grant has been awarded if—

(a) the generating station is of a specified description, or

(b) the circumstances of the case meet specified requirements.

(6) The requirements specified under subsection (5)(b) may relate to the
25time when the grant was awarded (whether a time before or after the
coming into force of this section).

(7) A certificate purchase order which contains banding provision may
provide for the operation of that provision in relation to electricity
generated by a generating station to which this subsection applies to be
30conditional upon the operator of the station agreeing—

(a) if the grant or any part of it has been paid, to repay to the person
who made the grant (“the payer”) the whole or a specified part
of the grant or part before the repayment date,

(b) to pay to the payer interest on an amount repayable under
35paragraph (a) for such period, and at such rate, as may be
determined in accordance with the order (which may confer the
function of making the determination on a person), and

(c) if the grant or any part of it has not yet been paid, to consent to
the cancellation of the award of the grant or part.

(8) 40For the purposes of subsection (7)—

(a) “the repayment date” means the date specified in or determined
in accordance with the order, and

(b) the period for which interest is payable must not begin before
the grant was paid or, if the repayment relates to an instalment
45of the grant, before the instalment was paid.

(9) In this section “statutory grant” means—

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(a) a grant awarded under section 5(1) of the Science and
Technology Act 1965 (grants to carry on or support scientific
research), or

(b) any other grant which is payable out of public funds and
5awarded under or by virtue of an Act or other statutory
provision (as defined by section 1(f) of the Interpretation Act
(Northern Ireland) 1954).

(10) This section is without prejudice to section 32Y(1)(b).

32X Certificate purchase orders: information

(1) 10A certificate purchase order may provide for—

(a) the Authority to require a person to provide it with information,
or with information of a particular kind, which in the
Authority’s opinion is relevant to the question whether a GB
certificate is, or was or will in future be, required to be issued to
15the person;

(b) the Northern Ireland authority to require a person to provide it
with information, or with information of a particular kind,
which in the authority’s opinion is relevant to the question
whether a NI certificate is, or was or will in future be, required
20to be issued to the person.

(2) That information must be given to the relevant authority in whatever
form it requires.

(3) A certificate purchase order may—

(a) require operators of generating stations generating electricity
25(wholly or partly) from biomass to give specified information,
or information of a specified kind, to the relevant authority;

(b) specify what, for this purpose, constitutes “biomass”;

(c) require the information to be given in a specified form and
within a specified period;

(d) 30authorise or require the relevant authority to postpone the issue
of certificates to the operator of a generating station who fails to
comply with a requirement imposed by virtue of paragraph (a)
or (c) until such time as the failure is remedied;

(e) authorise or require the relevant authority to refuse to issue
35certificates to such a person or to refuse to issue them unless the
failure is remedied within a specified period.

(4) The relevant authority may publish information obtained by virtue of
subsection (3).

(5) No person is required by virtue of this section to provide any
40information which the person could not be compelled to give in
evidence in civil proceedings in the High Court or, in Scotland, the
Court of Session.

32Y Certificate purchase orders: general provision

(1) A certificate purchase order may—

(a) 45make further provision as to the functions of the relevant
authority in relation to matters dealt with by the order;

(b) make transitional provision and savings;

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(c) provide for anything falling to be calculated or otherwise
determined under the order to be calculated or determined by
such persons, in accordance with such procedure and by
reference to such matters and to the opinion of such persons, as
5may be specified in the order;

(d) make different provision for different cases or circumstances.

(2) Provision made by virtue of subsection (1)(b) may, in particular,
include provision for—

(a) renewables obligation certificates, issued in respect of a period
10before the imposition of the certificate purchase obligation, to
be treated as if they were GB certificates issued in respect of a
subsequent period for which the order is in force;

(b) Northern Ireland RO certificates, issued in respect of a period
before the imposition of the certificate purchase obligation, to
15be treated as if they were NI certificates issued in respect of a
subsequent period for which the order is in force.

(3) Provision made by virtue of subsection (1)(d) may, in particular,
make—

(a) different provision in relation to different suppliers;

(b) 20different provision in relation to generating stations of different
descriptions;

(c) different provision in relation to different localities or different
parts of the United Kingdom.

(4) In subsection (3) “supplier” means an electricity supplier or a Northern
25Ireland supplier.

(5) The Authority and the Northern Ireland authority may enter into
arrangements for the Authority to act on behalf of the Northern Ireland
authority for, or in connection with, the carrying out of any functions
conferred on the Northern Ireland authority under, or for the purposes
30of, a certificate purchase order.

(6) The duties imposed on the Secretary of State by section 3A (principal
objective and general duties in carrying out functions under this Part)
do not apply in relation to the exercise of a power under section 32N to
make a certificate purchase order so far as it is made for or in
35connection with imposing the certificate purchase obligation on the
purchasing body of NI certificates.

32Z Certificate purchase orders: procedure

(1) Before making a certificate purchase order, the Secretary of State must
consult—

(a) 40the Authority,

(b) the Northern Ireland authority,

(c) the Council,

(d) the General Consumer Council for Northern Ireland,

(e) such electricity suppliers and Northern Ireland suppliers that
45may be required to pay the certificate purchase levy as the
Secretary of State considers appropriate,

(f) such generators of electricity from renewable sources as the
Secretary of State considers appropriate, and

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(g) such other persons, if any, as the Secretary of State considers
appropriate.

(2) A certificate purchase order is not to be made unless a draft of the
instrument containing it has been laid before and approved by a
5resolution of each House of Parliament.

(3) The Secretary of State must, subject to subsection (5), consult the
Scottish Ministers before making a certificate purchase order that
extends to Scotland.

(4) The Secretary of State must, subject to subsection (5), obtain the consent
10of the Northern Ireland department before making a certificate
purchase order that extends to Northern Ireland.

(5) Except as provided by subsection (6), the Secretary of State is not
required to—

(a) consult the Scottish Ministers under subsection (3), or

(b) 15obtain the consent of the Northern Ireland department under
subsection (4),

in respect of any provision of a certificate purchase order that is made
by virtue of section 32O(2)(m), 32P or 32Q (which together confer
power to make provision about the certificate purchase levy).

(6) 20Designation of the Northern Ireland department as the administrator of
the certificate purchase levy by virtue of section 32P(8)(b) requires the
consent of that department.

32Z1 Interpretation of sections 32N to 32Z1

(1) In this section and sections 32N to 32Z (“the relevant sections”), the
25following terms have the meanings given in section 32M(1)—

(2) In the relevant sections—

(3) For the purposes of the definition of “renewable sources”, a certificate
purchase order may make provision—

(a) about what constitutes “waste”;

(b) about how the proportion of waste which is, or is derived from,
35fossil fuel is to be determined;

(c) about what, subject to such exceptions as may be specified,
constitutes sufficient evidence of that proportion in any
particular case;

(d) authorising the relevant authority, in specified circumstances,
40to require an operator of a generating station to arrange—

(i) for samples of any fuel used (or to be used) in the
generating station, or of any gas or other substance
produced as a result of the use of such fuel, to be taken
by a person, and analysed in a manner, approved by the
45relevant authority;

(ii) for the results of that analysis to be made available to the
relevant authority.

(4) In the application of the relevant sections to Northern Ireland, “fossil
fuel” includes peat.

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(5) In the relevant sections “Northern Ireland” does not include any part of
the territorial sea of the United Kingdom, but this is subject to
subsection (6).

(6) A certificate purchase order may provide that “Northern Ireland”
5includes the territorial sea adjacent to Northern Ireland.

(7) An Order in council under section 98(8) of the Northern Ireland Act
1998 (apportionment of sea areas) has effect for the purposes of this
section if, or to the extent that, the Order is expressed to apply—

(a) by virtue of this subsection, for those purposes, or

(b) 10if no provision has been made by virtue of paragraph (a), for the
general or residual purposes of that Act.

(8) References in the relevant sections to the supply of electricity to
customers in Northern Ireland are to be construed in accordance with
the definition of “supply” in Article 3 of the Electricity (Northern
15Ireland) Order 1992.

(9) A certificate purchase order may make provision, for the purposes of
the relevant sections, about the circumstances in which electricity is to
be regarded as having been supplied—

(a) to customers in Great Britain;

(b) 20to customers in Northern Ireland.

(3) In section 106 (regulations and orders), in subsection (2)(b) after “32,” insert
“32N, 32R(4),”.

(4) In section 113 (extent etc), in subsection (3), at the beginning of the list (before
the entry for sections 65 to 70) insert “Sections 32N to 32Z1;”.

CHAPTER 8 25Emissions performance standard

38 Duty not to exceed annual carbon dioxide emissions limit

(1) The operator of any fossil fuel plant must secure that the emissions of carbon
dioxide from it that are attributable to the use of fossil fuel do not exceed EL
tonnes of carbon dioxide (“the emissions limit”) in any year, where—


30

EL = RxCx7.446

and—

(2) Until (and including) 2044, the statutory rate of emissions is 450 g/kWh.

(3) In this Chapter, “fossil fuel plant” means an electricity generating station which
satisfies the conditions in subsection (4), together with any associated
35gasification plant and any associated CCS plant.

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