Renewables Obligation Order (Northern Ireland) 2006

PART 5 NIROCS: ISSUE AND REVOCATION

Obligation to issue NIROCs

14.—(1) Where each of the relevant criteria in Article 15 has been met (having regard as necessary to the requirements in Article 16), the Authority shall issue NIROCs, in accordance with the procedure set out in Article 18, in relation to a generating station in respect of each month of each obligation period in which electricity has been generated by the generating station from eligible renewable sources (whether or not for the whole of that month) to the persons specified below.

(2) Except as provided for in paragraphs (3) and (4), NIROCs shall be issued to the operator of the generating station by which the relevant electricity was generated in a particular month.

(3) Where electricity is required to be generated by a generating station from eligible renewable sources under a qualifying arrangement or in compliance with such an arrangement to be made available to the Company (“the relevant output”), NIROCs shall be issued as set out below.

(4) Where the Company is entitled to the relevant output under or in compliance with a qualifying arrangement, NIROCs shall be issued to licensed suppliers notified to the Authority by the Company as being purchasers of the entitlement to receive NIROCs and to each in such quantities as are appropriate to the entitlement to receive NIROCs which the Company notifies the Authority each has purchased in arrangements made by the Company under Article 17 (subject to the total amount of NIROCs available to be so issued).

Criteria for issue of NIROCs

15.—(1) The criteria for the issue of NIROCs referred to in Article 14 and issue of replacement NIROCs referred to in Article 20(4) are those set out in paragraphs (2) to (6).

(2) The first criterion is that the Authority has previously confirmed in writing to the operator of the generating station to which the NIROC relates that the generating station has been granted accreditation and the Authority has not since withdrawn that accreditation;

(3) The second criterion is that the Authority has been provided in writing with all the information listed in paragraphs 2(b)(i) to (iii) of Schedule 3 together with any other information which it reasonably requires in order to assess whether the NIROC should be issued and it is satisfied that such information is accurate and reliable.

(4) The third criterion is that the operator of the generating station has provided the Authority with a declaration (which the Authority shall be entitled to accept as sufficient evidence of its contents, and which the operator need only provide once during every obligation period) applicable to the relevant electricity that—

(a) he has not made (or, where the declaration relates to electricity that he proposes to generate after the declaration is made, that he will not make) electricity available to any person in circumstances such that the operator knows or has reason to believe that the consumption of the electricity has resulted (or, as the case may be, will result) in it not having been supplied by an electricity supplier to customers in Northern Ireland;

(b) he has not consumed (or, where the declaration relates to electricity that he proposes to generate after the declaration is made, that he will not consume) the electricity himself in such circumstances that its consumption has resulted (or, as the case may be, will result) in the electricity not having been supplied by an electricity supplier to customers in Northern Ireland; and

(c) he is not (and will not during the obligation period become) a person mentioned in Article 6(2)(b) or Article 6(4)(b).

(5) The fourth criterion is that NIROCs in respect of the relevant electricity generated by the generating station in the particular month have not already been issued.

(6) The fifth criterion is that the Authority is not prohibited from issuing a NIROC on any of the grounds set out Article 16(2) and has not refused to issue a NIROC on any of the grounds set out in Article 16(3).

Criteria for issue of NIROCs: supplemental

16.—(1) Where a NIROC, if issued, will be issued to a licensed supplier pursuant to Article 14(4), the references in Article 15(4) to the operator of the generating station shall be treated as reference to the Company; but Article 15(4)(c) shall not apply.

(2) The Authority shall not issue a NIROC in respect of any electricity generated by a particular generating station in a particular month if the Great Britain Authority has previously issued a certificate under section 32B of the Electricity Act in respect of any such electricity and whether or not any such certificate previously issued has been revoked.

(3) The Authority may refuse to issue a NIROC in any case where the Authority—

(a) considers that the declaration in Article 15(4) is not accurate and reliable in relation to the electricity in respect of which the Authority is considering issuing the NIROC;

(b) has reason to believe that the electricity in respect of which the Authority is considering issuing the NIROC was consumed in circumstances which resulted in the electricity not having been supplied by an electricity supplier to customers in Northern Ireland; or

(c) is not satisfied that the operator of the generating station has, during the relevant month, complied with any condition to which accreditation of the relevant generating station is subject.

(4) For the purposes of Article 15(3), where information regarding the fuel used by the generating station has originated at a separate location to that of the generating station, in determining whether it is accurate and reliable the Authority may have regard to—

(a) the distance over which the fuel was transported;

(b) conditions under which the fuel was prepared and transported;

(c) the resources required for the Authority to verify the accuracy and reliability of the information; and

(d) such other matters as it considers relevant.

NIROCs: financial bids

17.—(1) In the case only of a NIROC relating to electricity that has been acquired, or is required to be acquired, under a qualifying arrangement, the Company shall make and implement arrangements within such a period as the Authority may direct—

(a) requiring the determination of the person, being a licensed supplier, to whom the NIROC is to be issued to be made by reference to financial bids made in respect of the NIROC with the person making the highest financial bid being the person to whom the NIROC is to be issued; and

(b) requiring that person to make a payment, in accordance with his bid, to the Company.

(2) The Company must conduct itself at all times in relation to the arrangements referred to in paragraph (1) in a manner so as to ensure and satisfy the Authority that it does not show any undue preference or exercise any undue discrimination in relation to any licensed supplier or class of licensed supplier.

(3) On each occasion that a licensed supplier is determined as being a person to whom one or more NIROCs should be issued pursuant to paragraph (1) the Company must promptly notify the Authority as to the licensed supplier so determined and in respect of each such notification, the Company shall, either with the notification or as soon as reasonably practicable after the notification, notify the Authority of the number of NIROCs to be issued to that licensed supplier.

(4) The Authority may give directions to the Company with regard to the making and implementing of arrangements by the Company under this Article and such directions may specify a date or dates by which the Company shall make and implement such arrangements and the Company shall comply with such directions.

Procedure and calculations for issue of NIROCs

18.—(1) The Authority shall when issuing NIROCs (other than replacement NIROCs which shall be issued in accordance with Article 20(4)(b) and (5)—

(a) allocate a number (“the NIROC sequence number”) to each NIROC issued;

(b) allocate NIROC sequence numbers sequentially in ascending numerical order to all the NIROCs issued in respect of electricity generated from eligible renewable sources by a particular generating station in a particular month; and

(c) in the case of a generating station which in a particular month generates electricity from eligible renewable sources under or in compliance with a qualifying arrangement, issue NIROCs in respect of that month—

(i) firstly to the licensed suppliers to whom Article 14(4) applies in that month on the basis of information provided to it by the Company; and,

(ii) thereafter, in the event that the generating station generates any electricity from eligible renewable sources in that month other than under a qualifying arrangement or which in that month is not required in compliance with such an arrangement to be made available to the Company, to the operator of that generating station.

(2) Where it issues NIROCs pursuant to this Part the Authority shall—

(a) determine the amount of electricity which is to be regarded as having been generated from eligible renewable sources by a generating station in a particular month (“the relevant month”) pursuant to Article 9;

(b) deduct from the amount determined in accordance with sub-paragraph (a) any electricity in respect of which in the relevant month any of the criteria in Article 15 were not satisfied;

(c) determine the amount of electricity which results from the calculations in sub-paragraphs (a) and (b) and round the amount so determined to the nearest megawatt hour (with any exact half megawatt hour being rounded upwards);

(d) determine the number of NIROCs which it is appropriate to issue for the amount of electricity determined pursuant to sub-paragraph (c) on the basis that one NIROC represents one megawatt hour of electricity; and

(e) issue the appropriate number of NIROCs determined pursuant to sub-paragraph (d) to the operator of the generating station or to the licensed supplier as specified in Article 14.

(3) Subject to paragraphs (4), (5) and (6), for the purpose of paragraph (2)(a), the Authority shall use, in the case of the amounts for “gross output” and “input electricity” (as those two expressions are defined in Article 9(7)) either—

(a) the most accurate figures for those amounts which are provided to the Authority at the end of the second month following the end of the relevant month (the “relevant date”); or

(b) where the operator of a generating station satisfies the Authority by the relevant date that it will never be possible for it to provide accurate figures, such figures as are estimated by the operator by the relevant date on a basis agreed in advance by the Authority.

(4) Where the figures are neither provided under paragraph (3)(a) nor estimated under paragraph (3)(b), the Authority may, in circumstances which it considers exceptional, accept figures which the operator of the generating station provides after the relevant date.

(5) Where figures are provided under paragraph (3)(a) or accepted under paragraph (4) and, before the Authority makes a determination under paragraph (2)(a), the Authority becomes aware of figures which it considers to be more accurate, the Authority may, where it considers appropriate, accept the later figures and make determinations under paragraphs (2)(a) to (d) on the basis of the later figures.

(6) Where the Authority makes a determination under paragraph (2)(a) on the basis of figures provided under paragraph (3)(a) or accepted under paragraphs (4) or (5) and the Authority subsequently becomes aware of figures which it considers to be more accurate, the Authority—

(a) may, where it considers appropriate, accept the later figures and make new determinations under paragraphs (2)(a) to (d); and

(b) shall, where the new determination under paragraph (2)(d) differs from the original determination under that provision, either—

(i) if it has not already issued NIROCs under paragraph (2)(e), issue NIROCs under that paragraph in accordance with the new determination;

(ii) revoke NIROCs in accordance with Article 20 where it has issued too many; or

(iii) issue additional NIROCs in accordance with paragraph (2)(e) where it has issued too few.

(7) NIROCs in respect of the relevant month shall be issued no earlier than the relevant date.

NIROC Register

19.—(1) The Authority shall establish and maintain a register of NIROCs (“the Register”) which shall be conclusive as to whether or not a NIROC subsists and as to the person who is for the time being its registered holder.

(2) Schedule 3 shall have effect with respect to the Register.

(3) A NIROC comprises a Register entry of its particulars and shall be regarded as being issued at the point when those particulars are entered in the Register by the Authority.

(4) In accordance with the provisions of Schedule 3, the Authority shall ensure that the Register contains, by way of entries made in it—

(a) an accurate record of the particulars of each NIROC as issued by the Authority (amended to reflect any change of registered holder which may occur) and which remains eligible to be produced as evidence pursuant to Article 3; and

(b) in addition to the record of the particulars of each NIROC, a list of the names of all persons who are either the registered holder of a NIROC or, although not at that time the registered holder of a NIROC, have notified the Authority that they wish an entry to be made and maintained in respect of them as prospective registered holders of NIROCs.

(5) Only the registered holder of a NIROC may use it as the evidence or as part of the evidence required from him under Article 3(1) and a NIROC may not be used by its registered holder or by any other person as the evidence or as part of the evidence required under Article 3(1) from any person other than the registered holder.

Revocation of NIROCs

20.—(1) The Authority—

(a) shall, where in respect of any electricity generated by a generating station in a particular month it is satisfied that the declaration provided to it pursuant to Article 15(4) is false or that a NIROC was issued on the basis of any fraudulent behaviour, statement or undertaking on the part of the operator of that generating station or any connected person, revoke all NIROCs issued in respect of that generating station in that month;

(b) shall, in accordance with the procedure laid down in paragraph (3), revoke any NIROC where it is otherwise satisfied that the NIROC is inaccurate;

(c) may, in accordance with the procedure laid down in paragraph (3), revoke any NIROC where—

(i) the Authority is no longer satisfied that the NIROC should have been issued;

(ii) the Authority has reasonable doubts as to the accuracy or reliability of the information upon which the Authority relied prior to the issue of the NIROC; or

(iii) the Authority has been unable, due to a failure or refusal by any person (whether inside or outside Northern Ireland) to provide the Authority with any information reasonably requested by it, to check the accuracy of either the NIROC or any information which the Authority relied upon prior to the issue of the NIROC; and

(d) subject to paragraph (2), shall, in reaching a decision as to the inaccuracy of a NIROC for the purposes of sub-paragraph (b) and in exercising its powers to revoke a NIROC pursuant to sub-paragraph (c), disregard any changes to the amounts for “gross output” and “input electricity” (as those two expressions are defined in Article 9(7) which were used by it (as provided in Article 18(3) ) to determine the amount of electricity to be regarded as having been generated from eligible renewable sources by a particular generating station in a particular month.

(2) Paragraph (1)(d) does not apply where, in accordance with Article 18(6), the Authority has accepted later figures and made new determinations under Article 18(2)(a) to (d).

(3) Where the Authority revokes NIROCs in accordance with paragraph (1)(b) or (c), it shall—

(a) revoke the appropriate number of NIROCs from those issued in respect of the generating station in respect of a particular month in descending numerical order of NIROC sequence number; and

(b) delete from the Register those NIROCs previously allocated the highest NIROC sequence numbers and remaining on the Register in advance of those with lower NIROC sequence numbers,

and in determining the number of NIROCs which it is appropriate to revoke it shall proceed on the basis that one NIROC represents one megawatt hour of electricity (with any exact half megawatt hour being rounded upwards).

(4) Where the Authority has revoked a NIROC—

(a) it shall as soon as practicable give notice in writing of such revocation to the registered holder of the NIROC at the time of revocation; and

(b) it may, other than when a NIROC has been revoked in accordance with paragraph (1)(a), in circumstances where it considers it appropriate to do so, issue a replacement NIROC in accordance with the procedures laid down in paragraph (5), provided that it is satisfied that each of the relevant criteria in Article 15 is met (having regard as necessary to the requirements in Article 16), and such NIROC shall be treated as if issued under Article 14.

(5) Where pursuant to paragraph (4)(b) the Authority issues a replacement NIROC it shall—

(a) allocate to the replacement NIROC the lowest NIROC sequence number of any NIROC previously issued in respect of the same generating station and same month that has been revoked which has not already been allocated to a replacement NIROC (unless that replacement NIROC has itself been revoked);

(b) issue each replacement NIROC to the person to whom the NIROC issued in respect of that generating station and that month and bearing the same NIROC sequence number was previously issued; and

(c) proceed on the basis that one NIROC represents one megawatt hour of electricity (with any exact half megawatt hour being rounded upwards).

Small generators

21.—(1) This Article applies to generating stations with a declared net capacity of 50 kilowatts or less (“sub-50 kilowatt stations”).

(2) The operator of a sub-50 kilowatt station may—

(a) not less than one month before the beginning of the first month (“the relevant month”) in respect of which the operator requests the issue of NIROCs in respect of electricity generated by the relevant station; or

(b) not less than one month before the beginning of any obligation period (“the relevant obligation period”),

give notice in writing to the Authority that its entitlement to NIROCs in respect of electricity generated by that station (“the relevant station”) shall be determined on the basis set out in the remainder of this Article.

(3) Paragraph (4) shall apply—

(a) where an operator has given notice as specified in paragraph (2)(a), in the case of the relevant station for the remainder of the obligation period during which the relevant month falls and subsequent obligation periods; and

(b) where an operator has given notice as specified in paragraph (2)(b), in the case of the relevant station for the relevant obligation period and subsequent obligation periods.

(4) Where this paragraph applies, the reference to “month” in each place where it occurs in Articles 5, 6, 7, 8, 9, 13, 14, 15, 16, 18 and 20 and Schedule 3 shall be taken to be a reference to “obligation period”, subject to the following exceptions—

(a) in Article 14(1) the words “of each month” shall be omitted;

(b) in Article 18(3)(a) the reference to “the second month” shall remain unchanged;

(c) in paragraph 2(b)(i) of Schedule 3 the words “the month and year” shall be replaced by “the obligation period”.

(5) An operator who has given notice under paragraph (2) may—

(a) if he gave notice under paragraph (2)(a), not less than 1 month before the beginning of any obligation period following the obligation period during which the relevant month falls; or

(b) if he gave that notice under paragraph (2)(b), not less than 1 month before the beginning of any obligation period following the relevant obligation period,

by notice in writing to the Authority, withdraw the notice given under paragraph (2).

(6) Where an operator gives notice under paragraph (5) the Authority shall, from the beginning of the obligation period in respect of which the operator gave that notice, determine the operator’s entitlement to NIROCs in respect of electricity generated by the relevant station on the basis set out in Article 14(1).