The Renewable Transport Fuel Obligations Order 2007

PART 5 U.K. DISCHARGE OF OBLIGATION

Payments U.K.

21.—(1) As soon as reasonably practicable after the end of an obligation period, the Administrator must notify each obligated supplier of the following—

(a) the amount of renewable transport fuel which the Administrator calculates should, in accordance with section 124(2)(b) of the 2004 Act and article 4(4), have been supplied at or for delivery to places in the United Kingdom during that obligation period, and

(b) the number of RTF certificates being held to the credit of the supplier's RTF account which may be used as evidence for the purposes of meeting the supplier's renewable transport fuel obligation.

(2) A certificate may be produced as evidence by the supplier pursuant to this Order—

(a) by means of an electronic submission transmitted to a website of the Administrator, which identifies the credit of a certificate in the supplier's RTF account, or

(b) by other means, in a case where the Administrator determines that it is necessary to allow production of an RTF certificate by those means.

(3) A supplier must notify the Administrator of the number of RTF certificates held in the supplier's RTF account which are to be counted towards the discharge of the supplier's renewable transport fuel obligation for the obligation period in question, and which are to be debited accordingly from the RTF account.

(4) That notification must be given to the Administrator by the specified date referred to in article 4(3)(b).

(5) Where a supplier fails to notify the Administrator of the number of RTF certificates to be counted by the date mentioned in paragraph (4), the Administrator must deem the number to be nil.

(6) A supplier who does not wholly discharge the renewable transport fuel obligation for an obligation period by the production of evidence in accordance with paragraph (2) by the specified date referred to in article 4(3)(b) must pay to the Administrator a sum determined in accordance with paragraph (7).

(7) That sum is determined as follows.

• Step 1

• Calculate in litres the amount of renewable transport fuel for which the supplier was obligated to produce evidence during the obligation period in question, pursuant to section 124(2) of the 2004 Act and article 4 (“the obligated amount”).

• Step 2

• Calculate in litres the amount of renewable transport fuel which should have been supplied during the obligation period in question, and for which the supplier has produced RTF certificates as evidence in accordance with paragraph (2) (“the actual amount”).

• Step 3

• Calculate the number of litres by which the actual amount falls short of the obligated amount (“the shortfall amount”).

• [F1 Step 4

• Multiply the shortfall amount by the buy-out price (which is £0.30). The amount given by this step is the sum which the supplier is to pay to the Administrator under paragraph (6).]

• F2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• F2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8) For the purposes of section 128(1), the period within which the sum must be paid to the Administrator (“the buy-out payment period”) is the period beginning on the 15th April immediately following the obligation period in question and ending on [F3 10th January in the following year].

(9) Where a supplier does not pay all or any part of the sum to the Administrator by the end of the buy-out payment period—

(a) the sum outstanding is to increase at the rate specified in paragraph (10) and the increase is to be calculated in accordance with paragraph (11), and

(b) the increased sum is a debt due from the supplier to the Administrator until it has been paid in full.

(10) The rate for the purpose of paragraph (9)(a) is 5 percentage points above the base rate of the Bank of England as at the [F4 11th January] immediately following the buy-out payment period in question.

(11) The increase is to be calculated on a daily basis beginning on the [F4 11th January] immediately following the buy-out payment period in question, and ending on the date on which payment is received by the Administrator.

Textual Amendments

F1 Words in art. 21(7) substituted (15.12.2011) by The Renewable Transport Fuel Obligations (Amendment) Order 2011 (S.I. 2011/2937), arts. 1, 19(2)(a)

F2 Words in art. 21(7) omitted (15.12.2011) by virtue of The Renewable Transport Fuel Obligations (Amendment) Order 2011 (S.I. 2011/2937), arts. 1, 19(2)(b)

F3 Words in art. 21(8) substituted (15.12.2011) by The Renewable Transport Fuel Obligations (Amendment) Order 2011 (S.I. 2011/2937), arts. 1, 19(3)

F4 Words in art. 21(10)(11) substituted (15.12.2011) by The Renewable Transport Fuel Obligations (Amendment) Order 2011 (S.I. 2011/2937), arts. 1, 19(4)

Re-cycling of buy-out payments U.K.

22.— [F5 (1) For the purposes of section 128(9) of the 2004 Act, the “transport fuel suppliers of a specified description” are any transport fuel supplier who, in relation to an obligation period in respect of which the Administrator has received the sums referred to in section 128(7)—

(a) is an obligated supplier, or a non-obligated supplier for whom an account is maintained by the Administrator pursuant to article 7(3)(a); and

(b) held one or more RTF certificates in an RTF account at the time they were notified to the Administrator in accordance with article 21(3) or surrendered under paragraph (2)(a) as the case may be.]

(2) Subject to paragraph (5), the system of allocation of the sums referred to in section 128(6) is as follows—

(a) each transport fuel supplier referred to in paragraph (1) must notify the Administrator of the number of RTF certificates held in the supplier's RTF account which the supplier surrenders to the Administrator in relation to the obligation period in question;

(b) those notifications must be given to the Administrator by the [F6 10th January] (or the next working day after [F6 10th January], if [F6 10th January] is not a working day) immediately following the obligation period in question;

(c) where a supplier fails to notify the Administrator by that date of the number of RTF certificates to be surrendered, the Administrator must deem the number to be nil;

(d) the Administrator must calculate the total sums received by the Administrator pursuant to article 21(6) and (9) by the [F7 10th February] (or the next working day after [F7 10th February], if [F7 10th February] is not a working day) (“the buy-out fund”);

(e) the Administrator may also include in the buy-out fund any sum received by the Administrator pursuant to article 21(6) and (9) after the [F8 10th February] (or after the next working day after [F8 10th February], if [F8 10th February] is not a working day) (“late sum received”);

(f) the Administrator must allocate the buy-out fund in equal shares between each RTF certificate which is counted under article 21(3) or surrendered under sub-paragraph (a), and

(g) the Administrator must make the payments, as soon as reasonably practicable after the date referred to in sub-paragraph (e), to the suppliers who held those RTF certificates [F9 at the time they were notified to the Administrator in accordance with article 21(3) or surrendered under sub-paragraph (a) as the case may be].

(3) In the case of any late sum received which the Administrator does not include in the buy-out fund pursuant to paragraph (2)(e) in relation to the obligation period in question (“the principal obligation period”), the Administrator must—

(a) allocate the sums in equal shares between each RTF certificate which is counted under article 21(3) or surrendered under paragraph (2)(a), and

(b) when making payments in relation to a subsequent obligation period, make the payments to the suppliers who held those RTF certificates [F10 at the time they were notified to the Administrator in accordance with article 21(3) or surrendered under paragraph (2)(a) as the case may be in relation to the principal obligation period].

(4) For the purposes of paragraphs (2) and (3), a supplier “surrenders” an RTF certificate where the supplier—

(a) does not need the certificate to count towards the discharge of the supplier's renewable transport fuel obligation (if any) for the obligation period in question;

(b) notifies the Administrator that the supplier renounces any further benefit from holding the certificate, and

(c) claims a share of the buy-out fund for the obligation period in question,

and the RTF certificate is debited from the supplier's RTF account accordingly.

(5) In the circumstances set out in paragraph (6), the Administrator must make such provision as is fair and reasonable with regard to—

(a) dealing with any sum paid by the supplier under article 21,

(b) allocating shares and making payments under this article, and

(c) any other matter requiring to be dealt with pending and following the final disposal of the court proceedings.

(6) The circumstances referred to are where—

(a) an RTF certificate held by a supplier is revoked,

(b) by way of court proceedings the supplier challenges the decision to revoke, and

(c) the court proceedings have not been finally disposed of by the [F11 15th November] immediately following the obligation period in question.

Textual Amendments

F5 Art. 22(1) substituted (15.12.2011) by The Renewable Transport Fuel Obligations (Amendment) Order 2011 (S.I. 2011/2937), arts. 1, 20(1)

F6 Words in art. 22(2)(b) substituted (15.12.2011) by The Renewable Transport Fuel Obligations (Amendment) Order 2011 (S.I. 2011/2937), arts. 1, 20(2)

F7 Words in art. 22(2)(d) substituted (15.12.2011) by The Renewable Transport Fuel Obligations (Amendment) Order 2011 (S.I. 2011/2937), arts. 1, 20(3)

F8 Words in art. 22(2)(e) substituted (15.12.2011) by The Renewable Transport Fuel Obligations (Amendment) Order 2011 (S.I. 2011/2937), arts. 1, 20(4)

F9 Words in art. 22(2)(g) substituted (15.12.2011) by The Renewable Transport Fuel Obligations (Amendment) Order 2011 (S.I. 2011/2937), arts. 1, 20(5)

F10 Words in art. 22(3)(b) substituted (15.12.2011) by The Renewable Transport Fuel Obligations (Amendment) Order 2011 (S.I. 2011/2937), arts. 1, 20(6)

F11 Words in art. 22(6)(c) substituted (15.12.2011) by The Renewable Transport Fuel Obligations (Amendment) Order 2011 (S.I. 2011/2937), arts. 1, 20(7)