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The Feed-in Tariffs Order 2012

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[F1MutualisationE+W+S

This section has no associated Explanatory Memorandum

30A.(1) This article applies—

(a)if one or more licensees fail to make the whole or part of a periodic levelisation payment to the Authority within 5 working days of the date on which it is due (“the due date”); and

(b)after 5 working days following the due date, the total of unpaid amounts (“the total”) is equal to or greater than the lower limit of the mutualisation trigger range.

(2) In paragraph (3), “the amount to be mutualised” means the lesser of—

(a)the total referred to in paragraph (1)(b); or

(b)the upper limit of the mutualisation trigger range.

(3) The Authority must—

(a)apportion the amount to be mutualised between all licensees other than the defaulting licensee, in proportion to each licensee’s market share at the due date;

(b)give notice to each of those licensees (a “mutualisation notice”)—

(i)that it is liable to make a payment of the amount apportioned to it (a “mutualisation payment”);

(ii)of the date by which the mutualisation payment is due; and

(c)where paragraph (4) applies, make a distribution of the total amounts received by the Authority (a “mutualisation distribution”) to any licensee which—

(i)is not a defaulting licensee; and

(ii)to whom, because of the unpaid amounts, payment of all or part of a periodic levelisation payment to which it is entitled to under article 28 has been deferred.

(4) Paragraph (3)(c) applies if—

(a)the date by which the mutualisation payment is due has passed; and

(b)the Authority has received mutualisation payments.

(5) If after giving a mutualisation notice to a licensee, the Authority identifies that any mutualisation payment specified in that notice is incorrect, the Authority must—

(a)cancel that mutualisation notice; and

(b)issue a further mutualisation notice under paragraph (3).

(6) Where a mutualisation notice is issued to a licensee in accordance with paragraph (5)(b) (“the new notice”), the Authority may treat any mutualisation payment made by that licensee in respect of the cancelled notice as a mutualisation payment made in respect of the new notice.

(7) Where, after receiving mutualisation payments from licensees, the Authority receives an unpaid amount from a defaulting licensee, the Authority must within 20 working days distribute that amount among qualifying licensees in proportion to their market shares at the unpaid amount’s due date.

(8) Where the Authority receives a mutualisation payment after the date on which it is due—

(a)if the Authority has not made yet made a mutualisation distribution, then this amount shall be included in the distribution; or

(b)if the Authority has made a mutualisation distribution, then this amount shall be distributed in accordance with article 30D(2).

(9) In this article—

“defaulting licensee” means a licensee which has failed to make the whole or part of a periodic levelisation payment to the Authority by the date on which it is due;

“market share” is to be determined in accordance with article 27;

“mutualisation trigger range” has the meaning set out in article 38;

“qualifying licensee” is a licensee who has made a mutualisation payment under paragraph (3) in respect of the unpaid amount mentioned in paragraph (7); and

“unpaid amount” means an amount of a periodic levelisation payment which a defaulting licensee has failed to pay by the date on which it is due.]

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