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Energy Bill


Energy Bill
Part 2 — Electricity Market Reform
Chapter 7 — The renewables obligation: transitional arrangements

33

 

(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

electricity stated in the certificate, and

5

(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,

between them, generated from renewable sources the amount

10

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)   

that the generating station, or, in the case of a certificate issued

15

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)   

that the electricity has been used in a permitted way.

20

(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)   

that the electricity has been used in a permitted way.

25

(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)   

that way is specified in the order as a permitted way—

30

(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

generating stations by which it was generated;

35

(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,

in circumstances in which its supply to customers in Northern

40

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)   

as respects part, as mentioned in one of the other

45

paragraphs and as respects the remainder as mentioned

in the other;

 
 

Energy Bill
Part 2 — Electricity Market Reform
Chapter 7 — The renewables obligation: transitional arrangements

34

 

(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

(meaning of supply of electricity through a private wire network)

5

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)   

that no certificates are to be issued in respect of electricity

10

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)   

electricity generated using specified descriptions of renewable

15

sources,

(b)   

electricity generated by specified descriptions of generating

station, or

(c)   

electricity generated in specified ways.

(3)   

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

20

(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

proportion;

25

(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

generating station, or of any gas or other substance

30

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

relevant authority.

35

(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

renewable source),

40

   

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

determined, and

45

(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.

 
 

Energy Bill
Part 2 — Electricity Market Reform
Chapter 7 — The renewables obligation: transitional arrangements

35

 

(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

may be transferred—

5

(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

purchase obligation in respect of the certificate is discharged (whether

10

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

section 32S(5) or (7) where the Northern Ireland authority has

15

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

Ireland authority so notifies the Authority at a time between the

20

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

equal to any amount that has been paid in respect of the certificate

25

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

refusing to issue another certificate to the person.

30

(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)   

The Northern Ireland authority must pay any amounts it receives by

35

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

stated in each certificate, and different amounts may be specified in

40

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

station;

45

(c)   

electricity generated in different ways.

 
 

Energy Bill
Part 2 — Electricity Market Reform
Chapter 7 — The renewables obligation: transitional arrangements

36

 

(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)   

the costs (including capital costs) associated with generating

5

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

with the generation of such electricity;

10

(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)   

the desirability of securing the long term growth, and economic

15

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

impact this will have on consumers;

20

(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)   

For the purposes of subsection (4)(a), the costs associated with

25

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

with the generation of electricity from a renewable source includes any

30

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)   

After the first order containing banding provision is made by the

35

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)   

may authorise the Secretary of State to review the banding

40

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

State is satisfied that one or more of the specified conditions is

45

satisfied.

32W     

Section 32V: transitional provision and savings

(1)   

This section applies where a certificate purchase order contains

banding provision.

 
 

Energy Bill
Part 2 — Electricity Market Reform
Chapter 7 — The renewables obligation: transitional arrangements

37

 

(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

descriptions as may be specified, or

5

(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

obligation order by virtue of section 32D(1) to apply, in such

10

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

virtue of Article 54B(1) of the Order, to apply, in such

15

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)   

Subsection (7) applies to a generating station in respect of which a

20

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

time when the grant was awarded (whether a time before or after the

25

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

conditional upon the operator of the station agreeing—

30

(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

paragraph (a) for such period, and at such rate, as may be

35

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)   

For the purposes of subsection (7)—

40

(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

of the grant, before the instalment was paid.

45

(9)   

In this section “statutory grant” means—

 
 

Energy Bill
Part 2 — Electricity Market Reform
Chapter 7 — The renewables obligation: transitional arrangements

38

 

(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

awarded under or by virtue of an Act or other statutory

5

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)   

A certificate purchase order may provide for—

10

(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

the person;

15

(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

to be issued to the person.

20

(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

(wholly or partly) from biomass to give specified information,

25

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)   

authorise or require the relevant authority to postpone the issue

30

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

certificates to such a person or to refuse to issue them unless the

35

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

information which the person could not be compelled to give in

40

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)   

make further provision as to the functions of the relevant

45

authority in relation to matters dealt with by the order;

(b)   

make transitional provision and savings;

 
 

Energy Bill
Part 2 — Electricity Market Reform
Chapter 7 — The renewables obligation: transitional arrangements

39

 

(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

may be specified in the order;

5

(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

before the imposition of the certificate purchase obligation, to

10

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

be treated as if they were NI certificates issued in respect of a

15

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)   

different provision in relation to generating stations of different

20

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

Ireland supplier.

25

(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

of, a certificate purchase order.

30

(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

connection with imposing the certificate purchase obligation on the

35

purchasing body of NI certificates.

32Z     

Certificate purchase orders: procedure

(1)   

Before making a certificate purchase order, the Secretary of State must

consult—

(a)   

the Authority,

40

(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

may be required to pay the certificate purchase levy as the

45

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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