|
| |
|
(i) | by the operator directly, or |
| |
(ii) | by a person to whom the operator supplies the |
| |
electricity, being a person who is exempt from section |
| |
4(1)(c) and does not hold a supply licence. |
| |
32C | Section 32B: supplemental provision |
| 5 |
(1) | A renewables obligation order may provide— |
| |
(a) | that no renewables obligation certificates are to be issued in |
| |
respect of electricity generated in specified cases or |
| |
| |
(b) | that renewables obligation certificates are to be issued in respect |
| 10 |
of a proportion only of the electricity generated in specified |
| |
| |
(2) | In particular, provision made by virtue of subsection (1) may specify— |
| |
(a) | electricity generated using specified descriptions of renewable |
| |
| 15 |
(b) | electricity generated by specified descriptions of generating |
| |
| |
(c) | electricity 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; |
| 20 |
(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 |
| |
| |
(c) | provision authorising the Authority, in specified circumstances, |
| 25 |
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 |
| |
produced as a result of the use of such fuel, to be taken |
| |
by a person, and analysed in a manner, approved by the |
| 30 |
| |
(ii) | for the results of that analysis to be made available to the |
| |
| |
(4) | In the case of electricity generated by a generating station fuelled or |
| |
| 35 |
(a) | partly by renewable sources, and |
| |
(b) | partly by fossil fuel (other than waste which constitutes a |
| |
| |
| only the proportion attributable to the renewable sources is to be |
| |
regarded as generated from such sources. |
| 40 |
(5) | A renewables obligation order may specify— |
| |
(a) | how the proportion referred to in subsection (4) is to be |
| |
| |
(b) | the consequences for the issuing of renewables obligation |
| |
certificates if a generating station of the type mentioned in that |
| 45 |
subsection uses more than a specified proportion of fossil fuel |
| |
during a specified period. |
| |
|
| |
|
| |
|
(6) | Those consequences may include the consequence that no certificates |
| |
are to be issued in respect of any of the electricity generated by that |
| |
generating station during that period. |
| |
(7) | A renewables obligation order may specify circumstances in which the |
| |
Authority may revoke a renewables obligation certificate before its |
| 5 |
production for the purposes of the renewables obligation. |
| |
(8) | A renewables obligation order must— |
| |
(a) | prohibit the issue of a renewables obligation certificate |
| |
certifying matters within section 32B(4) or (6) where the |
| |
Northern Ireland authority has notified the Authority that it is |
| 10 |
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 |
| |
issue of the certificate and its production for the purposes of the |
| 15 |
| |
(9) | References in section 32B and this section 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 |
| |
| 20 |
32D | Amounts of electricity specified in certificates |
| |
(1) | A renewables obligation order may specify the amount of electricity to |
| |
be stated in each renewables obligation certificate, and different |
| |
amounts may be specified in relation to different cases or |
| |
| 25 |
(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 |
| |
| |
(c) | electricity generated in different ways. |
| 30 |
(3) | In this section “banding provision” means provision made in a |
| |
renewables obligation 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 |
| 35 |
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; |
| 40 |
(c) | the effect of paragraph 19 of Schedule 6 to the Finance Act 2000 |
| |
(c. 17) (supplies of electricity from renewable sources exempted |
| |
from climate change levy) in relation to electricity generated |
| |
from each of those sources; |
| |
(d) | the desirability of securing the long term growth, and economic |
| 45 |
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 renewable obligations certificates issued by the |
| |
Authority, and the impact this will have on the market for such |
| |
certificates and on consumers; |
| |
(f) | the potential contribution of electricity generated from each |
| 5 |
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, a Community |
| |
| |
(5) | For the purposes of subsection (4)(a), the costs associated with |
| 10 |
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 |
| 15 |
| |
(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, no |
| 20 |
subsequent order containing such provision may be made except |
| |
following a review held by virtue of subsection (8). |
| |
(8) | A renewables obligation order— |
| |
(a) | may authorise the Secretary of State to review the banding |
| |
provision at such intervals as are specified in or determined in |
| 25 |
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 |
| |
| 30 |
32E | Section 32D: transitional provision and savings |
| |
(1) | This section applies where a renewables obligation order contains |
| |
| |
(2) | The order may provide for the effect of any banding provision made in |
| |
an earlier order, or of any provision of a pre-commencement order, to |
| 35 |
continue, in such circumstances as may be specified, in relation to— |
| |
(a) | the electricity generated by generating stations of such a |
| |
description as may be specified, or |
| |
(b) | so much of that electricity as may be determined in accordance |
| |
| 40 |
(3) | For the purposes of subsection (2) “pre-commencement order” means |
| |
an order made under section 32 before the coming into force of this |
| |
| |
(4) | Subsection (5) applies to a generating station in respect of which a |
| |
statutory grant has been awarded (whether before or after the coming |
| 45 |
into force of this section) if— |
| |
(a) | the generating station first became operational after 11 July |
| |
| |
|
| |
|
| |
|
(b) | the generating station is of a specified description or the |
| |
circumstances of the case meet specified requirements. |
| |
(5) | A renewables obligation order which contains banding provision may |
| |
provide for the operation of that provision in relation to electricity |
| |
generated by each generating station to which this subsection applies |
| 5 |
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 |
| |
Secretary of State the whole or a specified part of the grant or |
| |
part before the repayment date, |
| |
(b) | to pay to the Secretary of State interest on an amount repayable |
| 10 |
under paragraph (a) for such period, and at such rate, as may be |
| |
determined by the Secretary of State, 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. |
| |
(6) | For the purposes of subsection (5)— |
| 15 |
(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; |
| 20 |
| and, for the purposes of provision made under that subsection, a |
| |
renewables obligation order may make provision about the |
| |
cancellation of an award of a statutory grant or an instalment of such a |
| |
| |
(7) | For the purposes of subsection (4)(a), a generating station is operational |
| 25 |
if it is generating electricity from renewable sources and one or more of |
| |
the following conditions is satisfied— |
| |
(a) | the electricity is supplied to customers in Great Britain or |
| |
| |
(b) | the electricity is used in a permitted way (within the meaning of |
| 30 |
section 32B(9) and (10)); |
| |
(c) | at a time after 11 July 2006 but before 1 April 2007, the electricity |
| |
was sold by the operator of the generating station to an |
| |
electricity supplier or a Northern Ireland supplier and then |
| |
purchased back from that supplier by the operator of the |
| 35 |
generating station and consumed by it. |
| |
(8) | In this section “statutory grant” means— |
| |
(a) | a grant awarded under section 5(1) of the Science and |
| |
Technology Act 1965 (grants to carry on or support scientific |
| |
| 40 |
(b) | any other grant which is payable out of public funds and |
| |
awarded under or by virtue of an Act. |
| |
(9) | This section is without prejudice to section 32K(1)(b) (power for |
| |
renewables obligation order to include transitional provision and |
| |
| 45 |
32F | Use of renewables obligation certificates issued in Northern Ireland |
| |
(1) | A renewables obligation order may provide that— |
| |
(a) | in such cases as may be specified in the order, and |
| |
|
| |
|
| |
|
(b) | subject to such conditions as may be so specified, |
| |
| an electricity supplier may (to the extent provided for in accordance |
| |
with the order) discharge its renewables obligation (or its obligation in |
| |
relation to a particular period) by the production to the Authority of a |
| |
Northern Ireland certificate. |
| 5 |
(2) | In this section “Northern Ireland certificate” means a certificate issued |
| |
by the Northern Ireland authority in accordance with provision |
| |
included, by virtue of Article 54 of the Energy (Northern Ireland) Order |
| |
2003, in an order under Article 52 of that Order (renewables obligations |
| |
for Northern Ireland suppliers). |
| 10 |
32G | Payment as alternative to complying with renewables obligation order |
| |
(1) | A renewables obligation order may provide— |
| |
(a) | that an electricity supplier may (in whole or in part) discharge |
| |
its renewables obligation by making a payment to the Authority |
| |
before the last discharge day, and |
| 15 |
(b) | that an electricity supplier’s renewables obligation that was not |
| |
discharged in whole or in part before the last discharge day is to |
| |
be treated as having been discharged to the extent specified in |
| |
the order where the payment for which the order provides is |
| |
made to the Authority before the end of the late payment |
| 20 |
| |
(2) | The order may make provision— |
| |
(a) | as to the sum which for the purposes of subsection (1) is to |
| |
correspond to a renewables obligation certificate, |
| |
(b) | for the sums that must be paid in order for an obligation to be |
| 25 |
treated as having been discharged to increase at a rate specified |
| |
in the order for each day after the last discharge day; |
| |
(c) | for different sums or rates falling within paragraph (a) or (b) in |
| |
relation to different periods; |
| |
(d) | for different such sums or rates in relation to electricity |
| 30 |
generated in different cases or circumstances specified in the |
| |
order (including those of a kind referred to in section 32A(2)(c)); |
| |
(e) | for any such sum or rate to be adjusted from time to time for |
| |
inflation by a method specified in the order. |
| |
(3) | The method specified under subsection (2)(e) may, in particular, refer |
| 35 |
to a specified scale or index (as it may have effect from time to time) or |
| |
to other specified data of any description. |
| |
(4) | A renewables obligation order may provide that, where— |
| |
(a) | a renewables obligation is one in relation to which provision |
| |
made by virtue of subsection (1)(b) applies in the case of the |
| 40 |
electricity supplier who is subject to the obligation, and |
| |
(b) | the period ending with such day (after the last discharge day) as |
| |
may be specified in or determined under the order has not |
| |
| |
| the taking of steps under section 27A in respect of a contravention by |
| 45 |
that supplier of that obligation is prohibited or otherwise restricted to |
| |
the extent specified in the order. |
| |
(5) | A renewables obligation order may provide that, in a case in which the |
| |
amount received by the Authority, or by the Northern Ireland |
| |
|
| |
|
| |
|
authority, by way of discharge payments for a period falls short of the |
| |
amount due in respect of that period, every person who— |
| |
(a) | was subject to a renewables obligation for the relevant period or |
| |
for a subsequent period specified in or determined under the |
| |
| 5 |
(b) | is of a description so specified or determined, |
| |
| must by the time and in the circumstances so specified or determined |
| |
make a payment (or further payment) to the Authority of an amount |
| |
calculated in the manner so specified or determined. |
| |
(6) | A renewables obligation order may not by virtue of subsection (5) |
| 10 |
confer an entitlement on the Authority to receive a payment in respect |
| |
of the shortfall for any period— |
| |
(a) | in the case of a shortfall in the amount received by the |
| |
Authority, if the receipt of the payment is to be while a |
| |
prohibition or restriction by virtue of subsection (4) applies, in |
| 15 |
one or more cases, to the taking of steps in relation to |
| |
contraventions of renewables obligations for that period, or |
| |
(b) | in the case of a shortfall in the amount received by the Northern |
| |
Ireland authority, if the receipt of the payment is to be while a |
| |
prohibition or restriction by virtue of a corresponding provision |
| 20 |
having effect in Northern Ireland applies, in one or more cases, |
| |
to the taking of steps in relation to contraventions of Northern |
| |
Ireland obligations for that period. |
| |
(7) | The provision that may be made by virtue of subsection (5) includes— |
| |
(a) | provision for the making of adjustments and repayments at |
| 25 |
times after a requirement to make payments in respect of a |
| |
shortfall for a period has already arisen, and |
| |
(b) | provision that sections 25 to 28 are to apply in relation to a |
| |
requirement imposed by virtue of that subsection on a person |
| |
who is not a licence holder as if the person were a licence holder. |
| 30 |
(8) | References in this section to an electricity supplier’s renewables |
| |
obligation include references to its renewables obligation in relation to |
| |
| |
(9) | For the purposes of this section, the amount received by the Authority |
| |
by way of discharge payments for a period falls short of the amount |
| 35 |
due in respect of that period if, and to the extent that, the Authority |
| |
would have received more by way of discharge payments if every |
| |
renewables obligation for that period, so far as it was not otherwise |
| |
discharged, had been discharged by payment. |
| |
(10) | For the purposes of this section the amount received by the Northern |
| 40 |
Ireland authority by way of discharge payments for a period falls short |
| |
of the amount due in respect of that period if, and to the extent that, that |
| |
authority would have received more by way of discharge payments if |
| |
every Northern Ireland obligation for that period, so far as not |
| |
otherwise discharged, had been discharged by payment. |
| 45 |
| |
“discharge payment”, in relation to a period, means— |
| |
(a) | a payment by virtue of subsection (1)(a) for discharging |
| |
(in whole or in part) an electricity supplier’s renewables |
| |
obligation for that period, |
| 50 |
|
| |
|
| |
|
(b) | so much of a payment by virtue of subsection (1)(b) for |
| |
securing that such an obligation is treated as discharged |
| |
to any extent as does not exceed the payment that would |
| |
have discharged that obligation to the same extent if it |
| |
had been made before the last discharge day, or |
| 5 |
(c) | so much of any payment to the Northern Ireland |
| |
authority as corresponds in relation to a Northern |
| |
Ireland obligation for that period, to anything falling |
| |
within paragraph (a) or (b) above; |
| |
“last discharge day” means the day specified as the day by which |
| 10 |
renewables obligation certificates must be produced for the |
| |
purposes of section 32(4); |
| |
“late payment period” means such period beginning with the last |
| |
discharge day as may be specified; |
| |
“Northern Ireland obligation” means a renewables obligation of a |
| 15 |
Northern Ireland supplier under Article 52 of the Energy |
| |
(Northern Ireland) Order 2003; |
| |
| |
(a) | in relation to a shortfall in amounts received by the |
| |
Authority by way of discharge payments for a period, |
| 20 |
| |
(b) | in relation to a shortfall in amounts received by the |
| |
Northern Ireland authority by way of discharge |
| |
payments for a period, means any period that includes |
| |
the whole or a part of that period. |
| 25 |
32H | Allocation of amounts to electricity suppliers |
| |
(1) | The amounts received by the Authority by virtue of section 32G must |
| |
be paid by it to electricity suppliers in accordance with a system of |
| |
allocation specified in a renewables obligation order. |
| |
(2) | Subsection (1) does not apply to those amounts to the extent that they |
| 30 |
are used by the Authority under section 32I. |
| |
(3) | The system of allocation specified in the order may provide for |
| |
payments to specified categories of electricity supplier only. |
| |
(4) | That system may also provide for the postponement of a requirement |
| |
to make payments to electricity suppliers of amounts received by the |
| 35 |
Authority under section 32G(1)(b) if, at the time the payments would |
| |
otherwise fall to be made, the aggregate of the amounts so received |
| |
(and not used under section 32I or already paid under subsection (1)) is |
| |
less than an amount specified in the order. |
| |
(5) | The references in this section to electricity suppliers include references |
| 40 |
to Northern Ireland suppliers. |
| |
32I | Costs of the Authority and the Northern Ireland authority |
| |
(1) | A renewables obligation order may provide for amounts received by the |
| |
Authority by virtue of section 32G to be used by the Authority— |
| |
(a) | to make payments into the Consolidated Fund in respect of costs (or a |
| 45 |
proportion of costs) which have been or are expected to be incurred by |
| |
the Authority in connection with the performance of its functions |
| |
conferred by or under sections 32 to 32M, or |
| |
|
| |
|