Electricity Act 1989

[F1 32C Payment as alternative to complying with order under section 32. E+W+S

(1) An order under section 32 may provide

[F2 (a) that an electricity supplier may (in whole or in part) discharge its renewables obligation by making a payment to the Authority before the day specified as the day by which evidence must be produced for the purposes of section 32(3); and

(b) that an electricity supplier’s renewables obligation that was not discharged in whole or in part before the day so specified 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 such period beginning with that day as may be specified in the order.]

(2) The order may make provision—

(a) as to the sum which for the purposes of subsection (1) is to correspond to the supply of a given amount of electricity;

[F3 (aa) for the sums that must be paid in order for an obligation to be treated as having been discharged to increase at a rate specified in the order for each day after the time by which evidence had to be produced for the purposes of section 32(3);]

(b) for different [F4 sums or rates falling within paragraph (a) or (aa)] in relation to different periods;

(c) for different such sums [F5 or rates] in relation to electricity generated in different ways specified in the order (such as those referred to in section 32A(1)(b) and (c)); and

(d) for any such sum [F6 or rate] to be adjusted from time to time for inflation by a method specified in the order (which may refer to a specified scale or index or to other specified data of any description, including such a scale or index or such data in a form not current when the order was made, but in a subsequent form attributable to revision or any other cause and taking effect afterwards).

[F7 (2A) An order under section 32 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 electricity supplier who is subject to the obligation, and

(b) the period ending with such day (after the day by which the obligation had to be complied with) as may be specified in or determined under the order has not expired,

the taking of steps under section 27A in respect of a contravention by that supplier of that obligation is prohibited or otherwise restricted to the extent specified in the order.

(2B) An order under section 32 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 order, and

(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.

(2C) An order under section 32 may not by virtue of subsection (2B) 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 (2A) applies, in 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 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.

(2D) The provision that may be made by virtue of subsection (2B) includes—

(a) provision for the making of adjustments and repayments at 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 he were a licence holder.

(3) The amounts received by the Authority by virtue of the preceding provisions of this section must be paid by it to electricity suppliers in accordance with a system of allocation specified in an order under section 32.]

(4) The system of allocation specified in the order may provide for payments to specified categories of electricity supplier only.]

[F8 (5) The references in subsections (3) and (4) to electricity suppliers include references to persons who are Northern Ireland suppliers.]

[F9 (6) References in this section to an electricity supplier’s renewables obligation include references to its renewables obligation in relation to a particular period.

(7) For the purposes of this section—

(a) the amount received by the Authority by way of discharge payments for a period falls short of the amount due in respect of that period, and

(b) the amount received by the Northern 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, the Authority or (as the case may be) the Northern Ireland authority would have received more by way of discharge payments if every renewables obligation or (as the case may be) Northern Ireland obligation for that period, so far as it was not otherwise discharged, had been discharged by payment.

(8) In this section—

• “discharge payment”, in relation to a period, means—

  (a)

  a payment by virtue of paragraph (a) of subsection (1) for discharging (in whole or in part) an electricity supplier’s renewables obligation for that period;

  (b)

  so much of a payment by virtue of paragraph (b) of that subsection 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 day mentioned in that paragraph; or

  (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;

• “Northern Ireland obligation” means a renewables obligation of a Northern Ireland supplier under Article 52 of the Energy (Northern Ireland) Order 2003;

• “the relevant period”—

  (a)

  in relation to a shortfall in amounts received by the Authority by way of discharge payments for a period, means that period; and

  (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.]

Textual Amendments

F1 S. 32C inserted (1.10.2001) by 2000 c. 27, s. 65; S.I. 2001/3266, art. 2, Sch. (subject to transitional provisions in arts. 3-20)

F2 S. 32C(1)(a)(b) substituted (5.10.2004) by Energy Act 2004 (c. 20), ss. 115(2), 198(2); S.I. 2004/2575, art. 2(1), Sch. 1

F3 S. 32C(2)(aa) inserted (5.10.2004) by Energy Act 2004 (c. 20), ss. 115(3)(a), 198(2); S.I. 2004/2575, art. 2(1), Sch. 1

F4 Words in s. 32C(2)(b) substituted (5.10.2004) by Energy Act 2004 (c. 20), ss. 115(3)(b), 198(2); S.I. 2004/2575, art. 2(1), Sch. 1

F5 Words in s. 32C(2)(c) inserted (5.10.2004) by Energy Act 2004 (c. 20), ss. 115(3)(c), 198(2); S.I. 2004/2575, art. 2(1), Sch. 1

F6 Words in s. 32C(2)(d) inserted (5.10.2004) by Energy Act 2004 (c. 20), ss. 115(3)(d), 198(2); S.I. 2004/2575, art. 2(1), Sch. 1

F7 Ss. 32C(2A)-(3) substituted for s. 32C(3) (5.10.2004) by Energy Act 2004 (c. 20), ss. 115(4), 198(2); S.I. 2004/2575, art. 2(1), Sch. 1

F8 S. 32C(5) inserted (5.10.2004) by Energy Act 2004 (c. 20), ss. 118(1), 198(2); S.I. 2004/2575, art. 2(1), Sch. 1

F9 Ss. 32C(6)-(8) inserted (5.10.2004) by Energy Act 2004 (c. 20), ss. 115(5), 198(2); S.I. 2004/2575, art. 2(1), Sch. 1

Modifications etc. (not altering text)

C1 S. 32C: transfer of functions (1.11.2001) by S.I. 2001/3504, arts. 1(2)(a), 2, Sch. (with art. 4)