(11) In a case where a person liable to pay the levy has made any
overpayment or underpayment (whether arising because an estimate
turns out to be wrong or otherwise), provision under subsection (6)(e)
may require the amount of the overpayment or underpayment
5(including interest) to be set off against, or added to, any subsequent
liability of the person to pay the levy.

(12) In a case where the amount received in respect of levy payments for a
period falls short of the amount due for that period, provision under
subsection (6)(e) or (j) may include a requirement on persons liable to
10pay the levy to make further payments, by the time and in the
circumstances specified, of an amount calculated in the manner
specified or determined in accordance with the order.

(13) Provision under subsection (6)(h) may provide for the administrator to
determine the form in which any information that a person is required
15to give is to be given and the time by which it is to be given.

(14) Provision under subsection (6)(i) may—

(a) if the Authority is the administrator, apply sections 25 to 28 in
relation to a requirement in respect of the levy imposed under
the order on a person who is not a licence holder as if the person
20were a licence holder;

(b) in any other case, include provision for the imposition of
penalties if a requirement in respect of the levy is breached
(whether financial or not, but not including the creation of
criminal offences).

32Q 25Use of levy payments

(1) Amounts payable in respect of the certificate purchase levy are to be
paid to the administrator of the levy.

(2) Amounts received by the administrator under subsection (1) must be
paid to—

(a) 30the purchasing body of GB certificates, or

(b) the purchasing body of NI certificates,

in accordance with such provision as may be contained in the order.

(3) Amounts paid to a purchasing body under subsection (2) may be used
by that body only for the purpose of discharging the certificate
35purchase obligation.

(4) The order may contain further provision about—

(a) the calculation of amounts received by the administrator that
are to be paid to a relevant purchasing body;

(b) the time by which the administrator must make payments of
40such amounts to a relevant purchasing body;

(c) the manner in which any such payments are to be made;

(d) how amounts are to be dealt with for the purposes of subsection
(2) where the administrator and a relevant purchasing body to
whom they are to be paid are the same person.

(5) 45Subsections (2) to (4) are subject to subsections (6) to (10).

(6) The order may provide for amounts received by the administrator
under subsection (1) to be used by the administrator to make
payments—

(a) into the Consolidated Fund in respect of costs (or a proportion
5of costs) which have been or are expected to be incurred—

(i) by the Authority,

(ii) by the Secretary of State, or

(iii) by a relevant designated person,

in connection with the performance of functions conferred by or
10under sections 32N to 32Z2;

(b) into the Consolidated Fund of Northern Ireland in respect of
costs (or a proportion of costs) which have been or are expected
to be incurred—

(i) by the Northern Ireland authority, or

(ii) 15by the Northern Ireland department,

in connection with the performance of functions conferred by or
under sections 32N to 32Z2.

(7) For the purposes of subsection (6)(a), “relevant designated person”
means a person who is designated—

(a) 20as the purchasing body of GB certificates by virtue of being an
eligible person within section 32N(6)(a) (CFD counterparty);

(b) as the purchasing body of NI certificates by virtue of being an
eligible person within section 32N(7) (CFD counterparty);

(c) as an administrator of the levy by virtue of being an eligible
25person within section 32P(9)(a) or (10)(a) (CFD counterparty).

(8) The order—

(a) may exclude amounts of a specified description from being
used as mentioned in subsection (6);

(b) may prevent the administrator using amounts to make
30payments in respect of costs of a specified description.

(9) The purchasing body of GB certificates must, if directed to do so by the
Secretary of State, pay into the Consolidated Fund any amounts
received under subsection (2) that it would (but for the direction) be
able to use under subsection (3) for the purpose of discharging the
35purchase obligation in respect of GB certificates.

(10) The purchasing body of NI certificates must, if directed to do so by the
Secretary of State, pay into the Consolidated Fund of Northern Ireland
any amounts received under subsection (2) that it would (but for the
direction) be able to use under subsection (3) for the purpose of
40discharging the purchase obligation in respect of NI certificates.

(11) In this section “the order”, in relation to the certificate purchase levy,
means the certificate purchase order that imposes the levy.

32R Designation of a CFD counterparty as purchasing body or
administrator

(1) 45This section applies in relation to the designation of a person who is a
CFD counterparty—

(a) as a relevant purchasing body under section 32N(4)(b) or (5)(b),
or

(b) as the administrator of the levy under section 32P(7)(b) or (8)(b).

(2) A designation may be made only with the consent of the person
designated.

(3) A designation does not cease to have effect if the person’s designation
5as a CFD counterparty ceases to have effect by virtue of section 7(6)(a)
or (b) of the Energy Act 2013.

(4) A designation ceases to have effect if—

(a) the Secretary of State by order revokes the designation, or

(b) the person withdraws consent to the designation by giving not
10less than 3 months’ notice in writing to the Secretary of State.

(5) The Secretary of State may by order make transitional provision in
connection with a designation ceasing to have effect.

(6) An order under subsection (5) may in particular make provision about
how obligations, imposed by virtue of a certificate purchase order on a
15person whose designation ceases to have effect, are to be discharged in
any period before or after the time when the designation ceases to have
effect.

(7) Subsection (5) is not to be taken as limiting the power to make
transitional provision in a certificate purchase order by virtue of section
2032Z(1)(b).

32S GB certificates

(1) A certificate purchase order may (subject to subsection (3)) provide for
the Authority to issue from time to time, in accordance with such
criteria (if any) as are specified in the order, a certificate (“a GB
25certificate”) to—

(a) the operator of a generating station, or

(b) if the order so provides, a person of any other description
specified in the order.

(2) A GB certificate is to certify—

(a) 30the matters within subsection (4) or (5), or

(b) if the order provides that a certificate may certify the matters
within subsection (6), (7), (8) or (9), the matters within that
subsection.

(3) A GB certificate certifying that an amount of electricity has been
35generated from renewable sources in any period may not be issued if—

(a) a renewables obligation order is in force, and

(b) a renewables obligation certificate has been, or could be, issued
under the order in respect of the generation in that period of the
same electricity.

(4) 40The matters within this subsection are—

(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 specified in the certificate, has generated
from renewable sources the amount of electricity stated in the
45certificate, and

(b) that the electricity has been supplied by an electricity supplier
to customers in Great Britain.

(5) The matters within this subsection are—

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

(b) that the generating station in question is not in Northern
10Ireland, and

(c) that the electricity has been supplied by a Northern Ireland
supplier to customers in Northern Ireland.

(6) The matters within this subsection are—

(a) that two or more generating stations have, between them,
15generated from renewable sources the amount of electricity
stated in the certificate, and

(b) that the electricity has been supplied by an electricity supplier
to customers in Great Britain.

(7) The matters within this subsection are—

(a) 20that two or more generating stations have, between them,
generated from renewable sources the amount of electricity
stated in the certificate,

(b) that none of them is a generating station in Northern Ireland,
and

(c) 25that the electricity has been supplied by a Northern Ireland
supplier to customers in Northern Ireland.

(8) The matters within this subsection are—

(a) that the generating station, or, in the case of a certificate issued
otherwise than to the operator of a generating station, a
30generating station 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.

(9) The matters within this subsection are—

(a) 35that two or more generating stations 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.

(10) For the purposes of subsections (8) and (9), electricity generated by a
40generating 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 (11), and

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

(i) in relation to all generating stations, or

(ii) 45in relation to generating stations of that description.

(11) Those ways are—

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

(b) being supplied to customers in Great Britain through a private
wire network;

(c) being provided to a distribution system or a transmission
system in circumstances in which its supply to customers
5cannot 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
10paragraphs and as respects the remainder as mentioned
in the other;

(e) being used, as respects part, as mentioned in paragraph (a), (b),
(c) or (d) and as respects the remainder by being supplied by an
electricity supplier to customers in Great Britain or by a
15Northern Ireland supplier to customers in Northern Ireland, or
both.

(12) Subsection (11) of section 32B (meaning of supply of electricity through
a private wire network) applies for the purposes of subsection (11)(b)
as it applies for the purposes of subsection (10)(b) of that section.

32T 20NI certificates

(1) A certificate purchase order may (subject to subsection (3)) provide for
the Northern Ireland authority to issue from time to time, in accordance
with such criteria (if any) as are specified in the order, a certificate (“a
NI certificate”) to—

(a) 25the operator of a generating station in Northern Ireland, or

(b) if the order so provides, a person of any other description.

(2) A NI certificate is to certify—

(a) the matters within subsection (4), or

(b) if the order provides that a certificate may certify the matters
30within subsection (5), (6) or (7), the matters within that
subsection.

(3) A NI certificate certifying that an amount of electricity has been
generated from renewable sources in any period may not be issued if—

(a) an order under Article 52 of the Energy (Northern Ireland)
35Order 2003 is in force, and

(b) a Northern Ireland RO certificate has been, or could be, issued
under that order in respect of the same electricity.

(4) The matters within this subsection are—

(a) that the generating station, or, in the case of a certificate issued
40otherwise 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 it has been supplied by a Northern Ireland supplier to
45customers 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
of electricity stated in the certificate, and

(b) that it has been supplied by a Northern Ireland supplier to
5customers in Northern Ireland.

(6) The matters within this subsection are—

(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
10certificate, 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.

(7) The matters within this subsection are—

(a) that two or more generating stations in Northern Ireland have,
15between 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.

(8) For the purposes of subsections (6) and (7), electricity generated by a
generating station, or generating stations, of any description is used in
20a 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—

(i) in relation to all generating stations, or

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

(9) 25Those ways are—

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

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

(c) 30being 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
Ireland cannot be demonstrated;

(d) being used, as respects part, as mentioned in one of paragraphs
35(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
paragraphs and as respects the remainder as mentioned
in the other;

(e) 40being 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)
45applies 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
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) 5In particular, provision made by virtue of subsection (1) may specify—

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

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

(c) 10electricity generated in specified ways.

(3) Provision 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
15to be established for the purpose of determining that
proportion;

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

(i) 20for 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
relevant authority, and

(ii) 25for the results of that analysis to be made available to the
relevant authority.

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

(a) partly by renewable sources, and

(b) 30partly by fossil fuel (other than waste which constitutes a
renewable 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) 35how the proportion referred to in subsection (4) is to be
determined, 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.

(6) 40Those 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—

(a) 45only 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
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
5been supplied to customers in Northern Ireland by virtue of
section 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) 10require the revocation of such a certificate if the Northern
Ireland 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
15whom 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
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) 20it is not possible to secure the recovery of such an amount by
refusing 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
25(10) into the Consolidated Fund.

(13) The 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) 30A certificate purchase order may specify the amount of electricity to be
stated 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) 35electricity generated by different descriptions of generating
station;

(c) electricity generated in different ways.

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

(4) 40Before making any banding provision, the Secretary of State must have
regard to the following matters—

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

(b) 45the income of operators of generating stations in respect of
electricity generated from each of those sources or associated
with 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) 5the 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
10impact 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) 15For 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
20with 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) 25After 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 may authorise the Secretary of State to
30review 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 satisfied.

32W Section 32V: transitional provision and savings

(1) This section applies where a certificate purchase order contains
35banding provision.

(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
40descriptions 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
45obligation 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
virtue of Article 54B(1) of the Order, to apply, in such
circumstances as may be specified, in relation to NI certificates
5as 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
statutory grant has been awarded if—

(a) 10the 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
coming into force of this section).

(7) 15A 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—

(a) if the grant or any part of it has been paid, to repay to the person
20who 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
determined in accordance with the order (which may confer the
25function 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)—

(a) “the repayment date” means the date specified in or determined
30in 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.

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

(a) 35a 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
40provision (as defined by section 1(f) of the Interpretation Act
(Northern Ireland) 1954).

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

32X Certificate purchase orders: information

(1) A certificate purchase order may provide for—

(a) 45the 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