In section 155 (objective of an energy administration), after subsection (7) insert—

“(8)

Subsection (9) applies if the company in relation to which an energy administration order is made has functions conferred by or by virtue of—

(a)

Chapter 2, 3 or 4 of Part 2 of the Energy Act 2013, or

(b)

an order made under section 46 of that Act (power of Secretary of State to transfer certain functions).

(9)

The objective of an energy administration (in addition to the objective mentioned in subsection (1)) is to secure—

(a)

that those functions are and continue to be carried out in an efficient and effective manner; and

(b)

that it becomes unnecessary, by one or both of the means mentioned in subsection (2), for the energy administration order to remain in force for that purpose.

(10)

The duty under section 154(3), so far as it relates to the objective mentioned in subsection (9)—

(a)

applies only to the extent that securing that objective is not inconsistent with securing the objective mentioned in subsection (1);

(b)

ceases to apply in respect of any function of a company if an order is made under section 46 of the Energy Act 2013 as a result of which the function is transferred from that company to another person.”

After section 32L of EA 1989 insert—

“32LARenewables obligation closure order

(1)

The Secretary of State may make a renewables obligation closure order.

(2)

A renewables obligation closure order is an order which provides that no renewables obligation certificates are to be issued under a renewables obligation order in respect of electricity generated after a specified date.

(3)

Provision made under subsection (2) may specify different dates in relation to different cases or circumstances.

(4)

The cases or circumstances mentioned in subsection (2) may in particular be described by reference to—

(a)

accreditation of a generating station, or

(b)

the addition of generating capacity to a generating station.

(5)

A renewables obligation closure order may include provision about—

(a)

the meaning of “accreditation” and “generating capacity” in subsection (4);

(b)

when generating capacity is to be treated as added to a generating station for the purposes of that subsection.

(6)

References in this section to a renewables obligation order are references to any renewables obligation order made under section 32 (whenever made, and whether or not made by the Secretary of State).

(7)

Power to make provision in a renewables obligation order (and any provision contained in such an order) is subject to provision contained in a renewables obligation closure order; but this section is not otherwise to be taken as affecting power to make provision in a renewables obligation order of the kind mentioned in subsection (2).

(8)

Section 32K applies in relation to a renewables obligation closure order as it applies in relation to a renewables obligation order (and subsection (3) above is not to be taken as limiting the application of that section).

32LBRenewables obligation closure orders: procedure

(1)

Before making a renewables obligation closure order, the Secretary of State must consult—

(a)

the Authority,

(b)

the Council,

(c)

such generators of electricity from renewable sources as the Secretary of State considers appropriate, and

(d)

such other persons, if any, as the Secretary of State considers appropriate.

(2)

The requirement to consult may be satisfied by consultation before, as well as consultation after, the passing of the Energy Act 2013.

(3)

A renewables obligation closure order is not to be made unless a draft of the instrument containing it has been laid before and approved by a resolution of each House of Parliament.”

After section 32M insert—

“32NThe certificate purchase obligation

(1)

The Secretary of State may make a certificate purchase order.

(2)

A certificate purchase order is an order which imposes the certificate purchase obligation on—

(a)

the purchasing body of GB certificates;

(b)

the purchasing body of NI certificates.

(3)

The certificate purchase obligation is that—

(a)

the purchasing body of GB certificates must pay the redemption value of a GB certificate to the person presenting it;

(b)

the purchasing body of NI certificates must pay the redemption value of a NI certificate to the person presenting it.

(4)

The purchasing body of GB certificates is—

(a)

the Authority, or

(b)

such other eligible person as may be designated by the order as the purchasing body of GB certificates.

(5)

The purchasing body of NI certificates is—

(a)

the Northern Ireland authority, or

(b)

such other eligible person as may be designated by the order as the purchasing body of NI certificates.

(6)

A person is an “eligible person” for the purposes of designation under subsection (4)(b) if the person is—

(a)

a CFD counterparty at the time when the designation is made, or

(b)

the Secretary of State.

(7)

A person is an “eligible person” for the purposes of designation under subsection (5)(b) if the person is a CFD counterparty at the time when the designation is made.

(8)

Subsection (3) is subject to sections 32O to 32Z2.

32OFurther provision about the certificate purchase obligation

(1)

A certificate purchase order may make provision generally in relation to the certificate purchase obligation.

(2)

A certificate purchase order may, in particular—

(a)

specify the redemption value of certificates or provide for how the redemption value is to be calculated;

(b)

provide for different redemption values for successive periods of time;

(c)

authorise the adjustment of redemption values from time to time for inflation by a method specified in the order (including by reference to a specified scale or index, as it has effect from time to time, or to other specified data of any description);

(d)

require the relevant purchasing body or the Secretary of State (if not the relevant purchasing body) to publish the redemption value of certificates by a specified deadline;

(e)

provide for the manner in which a certificate is to be presented to the relevant purchasing body;

(f)

provide for the certificate purchase obligation in relation to certificates issued in respect of electricity generated—

(i)

using specified descriptions of renewable sources,

(ii)

by specified descriptions of generating stations,

(iii)

in specified ways, or

(iv)

in other specified cases or circumstances,

to apply only up to a specified number of the certificates that are presented for payment in any specified period;

(g)

provide that certificates in respect of electricity generated—

(i)

using specified descriptions of renewable sources,

(ii)

by specified descriptions of generating stations,

(iii)

in specified ways, or

(iv)

in other specified cases or circumstances,

are to be issued only up to such number of certificates in any specified period as may be specified or determined in accordance with the order;

(h)

provide that the certificate purchase obligation is not to apply on presentation of a certificate unless—

(i)

the certificate is presented by such a deadline as may be specified or determined in accordance with the order, and

(ii)

any other specified conditions are met (whether in relation to the certificate, the person presenting it or other matters);

(i)

provide for how the relevant purchasing body is to determine whether specified conditions are met;

(j)

provide that the certificate purchase obligation in relation to a certificate is to be discharged by such a deadline as may be specified or determined in accordance with the order;

(k)

authorise the relevant purchasing body to determine the manner in which payments under the certificate purchase obligation are to be made;

(l)

authorise the relevant purchasing body to deduct from payments specified descriptions of fees or charges incurred in making the payments;

(m)

provide for a certificate purchase levy (see section 32P);

(n)

authorise the Secretary of State to make payments for the purpose of enabling the certificate purchase obligation to be discharged;

(o)

impose such other obligations, or confer such other functions, on the relevant purchasing body as the Secretary of State considers appropriate.

(3)

Once the redemption value in relation to a certificate is paid (less any deductions permitted under the order by virtue of subsection (2)(l)), the certificate purchase obligation in relation to that certificate is discharged (and the certificate is not to be presented for payment again).

(4)

For the purposes of carrying out its functions under a certificate purchase order, the relevant purchasing body may—

(a)

require a person presenting a certificate to provide such information or documentation as the body may reasonably need for such purposes, and

(b)

determine the form in which, and the time by which, such information or documentation is to be supplied.

(5)

The certificate purchase obligation does not apply in relation to a certificate unless the person presenting the certificate has complied with any requirements imposed under subsection (4).

32PCertificate purchase levy

(1)

A certificate purchase order may provide for a certificate purchase levy to be charged in connection with the provision of payments to the relevant purchasing body.

(2)

A certificate purchase levy is a levy—

(a)

charged in respect of supplies of electricity that have been, or are expected to be, made in each specified period, and

(b)

payable in respect of each such period by persons who make, or are expected to make, the supplies.

(3)

The order may (without limiting the generality of section 32Z(1)(d)) provide for different rates or different amounts of levy to be charged—

(a)

in different cases or circumstances;

(b)

in relation to different specified periods.

(4)

The order may secure that the levy is not to be charged in respect of particular descriptions of supplies of electricity.

(5)

The order may provide for amounts of the levy received in respect of any period to be applied for the purpose of discharging the certificate purchase obligation in another period.

(6)

The order may, in particular, make provision about any of the following matters—

(a)

what is a supply of electricity for the purposes of the levy;

(b)

when a supply of electricity is, or is expected to be, made for those purposes;

(c)

who makes, or is expected to make, a supply of electricity for those purposes;

(d)

the rates or amounts of the levy, or how such rates or amounts are to be determined;

(e)

payment of the levy, including deadlines for payment in respect of each period and interest in respect of late payment;

(f)

administration of the levy;

(g)

audit of information (whether by the administrator of the levy or a third party) including requirements for audits to be paid by the person whose information is subject to the audit;

(h)

provision of information, including its provision to third parties in specified circumstances;

(i)

enforcement of the levy;

(j)

insolvency of persons liable to pay the levy;

(k)

reviews and appeals;

(l)

the functions of the administrator in connection with the levy.

(7)

The administrator of the levy, in the case of persons who make, or are expected to make, supplies of electricity in Great Britain, is—

(a)

the Authority, or

(b)

such other eligible person as may be designated by the order as the administrator in the case of such persons.

(8)

The administrator of the levy, in the case of persons who make, or are expected to make, supplies of electricity in Northern Ireland, is—

(a)

the Northern Ireland authority, or

(b)

such other eligible person as may be designated by the order as the administrator in the case of such persons.

(9)

A person is an “eligible person” for the purposes of designation under subsection (7)(b) if the person is—

(a)

a CFD counterparty at the time when the designation is made, or

(b)

the Secretary of State.

(10)

A person is an “eligible person” for the purposes of designation under subsection (8)(b) if the person is—

(a)

a CFD counterparty at the time when the designation is made, or

(b)

the Northern Ireland department.

(11)

In a case where a person liable to pay the levy has made any overpayment or underpayment (whether arising because an estimate turns out to be wrong or otherwise), provision under subsection (6)(e) may require the amount of the overpayment or underpayment (including interest) to be set off against, or added to, any subsequent liability of the person to pay the levy.

(12)

In a case where the amount received in respect of levy payments for a period falls short of the amount due for that period, provision under subsection (6)(e) or (j) may include a requirement on persons liable to pay the levy to make further payments, by the time and in the circumstances specified, of an amount calculated in the manner specified or determined in accordance with the order.

(13)

Provision under subsection (6)(h) may provide for the administrator to determine the form in which any information that a person is required to give is to be given and the time by which it is to be given.

(14)

Provision under subsection (6)(i) may—

(a)

if the Authority is the administrator, apply sections 25 to 28 in relation to a requirement in respect of the levy imposed under the order on a person who is not a licence holder as if the person were a licence holder;

(b)

in any other case, include provision for the imposition of penalties if a requirement in respect of the levy is breached (whether financial or not, but not including the creation of criminal offences).

32QUse of levy payments

(1)

Amounts payable in respect of the certificate purchase levy are to be paid to the administrator of the levy.

(2)

Amounts received by the administrator under subsection (1) must be paid to—

(a)

the purchasing body of GB certificates, or

(b)

the purchasing body of NI certificates,

in accordance with such provision as may be contained in the order.

(3)

Amounts paid to a purchasing body under subsection (2) may be used by that body only for the purpose of discharging the certificate purchase obligation.

(4)

The order may contain further provision about—

(a)

the calculation of amounts received by the administrator that are to be paid to a relevant purchasing body;

(b)

the time by which the administrator must make payments of such amounts to a relevant purchasing body;

(c)

the manner in which any such payments are to be made;

(d)

how amounts are to be dealt with for the purposes of subsection (2) where the administrator and a relevant purchasing body to whom they are to be paid are the same person.

(5)

Subsections (2) to (4) are subject to subsections (6) to (10).

(6)

The order may provide for amounts received by the administrator under subsection (1) to be used by the administrator to make payments—

(a)

into the Consolidated Fund in respect of costs (or a proportion of costs) which have been or are expected to be incurred—

(i)

by the Authority,

(ii)

by the Secretary of State, or

(iii)

by a relevant designated person,

in connection with the performance of functions conferred by or under sections 32N to 32Z2;

(b)

into the Consolidated Fund of Northern Ireland in respect of costs (or a proportion of costs) which have been or are expected to be incurred—

(i)

by the Northern Ireland authority, or

(ii)

by the Northern Ireland department,

in connection with the performance of functions conferred by or under sections 32N to 32Z2.

(7)

For the purposes of subsection (6)(a), “relevant designated person” means a person who is designated—

(a)

as the purchasing body of GB certificates by virtue of being an eligible person within section 32N(6)(a) (CFD counterparty);

(b)

as the purchasing body of NI certificates by virtue of being an eligible person within section 32N(7) (CFD counterparty);

(c)

as an administrator of the levy by virtue of being an eligible person within section 32P(9)(a) or (10)(a) (CFD counterparty).

(8)

The order—

(a)

may exclude amounts of a specified description from being used as mentioned in subsection (6);

(b)

may prevent the administrator using amounts to make payments in respect of costs of a specified description.

(9)

The purchasing body of GB certificates must, if directed to do so by the Secretary of State, pay into the Consolidated Fund any amounts received under subsection (2) that it would (but for the direction) be able to use under subsection (3) for the purpose of discharging the purchase obligation in respect of GB certificates.

(10)

The purchasing body of NI certificates must, if directed to do so by the Secretary of State, pay into the Consolidated Fund of Northern Ireland any amounts received under subsection (2) that it would (but for the direction) be able to use under subsection (3) for the purpose of discharging the purchase obligation in respect of NI certificates.

(11)

In this section “the order”, in relation to the certificate purchase levy, means the certificate purchase order that imposes the levy.

32RDesignation of a CFD counterparty as purchasing body or administrator

(1)

This section applies in relation to the designation of a person who is a CFD counterparty—

(a)

as a relevant purchasing body under section 32N(4)(b) or (5)(b), or

(b)

as the administrator of the levy under section 32P(7)(b) or (8)(b).

(2)

A designation may be made only with the consent of the person designated.

(3)

A designation does not cease to have effect if the person's designation as a CFD counterparty ceases to have effect by virtue of section 7(6)(a) or (b) of the Energy Act 2013.

(4)

A designation ceases to have effect if—

(a)

the Secretary of State by order revokes the designation, or

(b)

the person withdraws consent to the designation by giving not less than 3 months' notice in writing to the Secretary of State.

(5)

The Secretary of State may by order make transitional provision in connection with a designation ceasing to have effect.

(6)

An order under subsection (5) may in particular make provision about how obligations, imposed by virtue of a certificate purchase order on a person whose designation ceases to have effect, are to be discharged in any period before or after the time when the designation ceases to have effect.

(7)

Subsection (5) is not to be taken as limiting the power to make transitional provision in a certificate purchase order by virtue of section 32Z(1)(b).

32SGB certificates

(1)

A certificate purchase order may (subject to subsection (3)) provide for the Authority to issue from time to time, in accordance with such criteria (if any) as are specified in the order, a certificate (“a GB certificate”) to—

(a)

the operator of a generating station, or

(b)

if the order so provides, a person of any other description specified in the order.

(2)

A GB certificate is to certify—

(a)

the matters within subsection (4) or (5), or

(b)

if the order provides that a certificate may certify the matters within subsection (6), (7), (8) or (9), the matters within that subsection.

(3)

A GB certificate certifying that an amount of electricity has been generated from renewable sources in any period may not be issued if—

(a)

a renewables obligation order is in force, and

(b)

a renewables obligation certificate has been, or could be, issued under the order in respect of the generation in that period of the same electricity.

(4)

The matters within this subsection are—

(a)

that the generating station, or, in the case of a certificate issued otherwise than to the operator of a generating station, a generating station specified in the certificate, has generated from renewable sources the amount of electricity stated in the certificate, and

(b)

that the electricity has been supplied by an electricity supplier to customers in Great Britain.

(5)

The matters within this subsection are—

(a)

that the generating station, or, in the case of a certificate issued otherwise than to the operator of a generating station, a generating station specified in the certificate, has generated from renewable sources the amount of electricity stated in the certificate,

(b)

that the generating station in question is not in Northern Ireland, and

(c)

that the electricity has been supplied by a Northern Ireland supplier to customers in Northern Ireland.

(6)

The matters within this subsection are—

(a)

that two or more generating stations have, between them, generated from renewable sources the amount of electricity stated in the certificate, and

(b)

that the electricity has been supplied by an electricity supplier to customers in Great Britain.

(7)

The matters within this subsection are—

(a)

that two or more generating stations have, between them, generated from renewable sources the amount of electricity stated in the certificate,

(b)

that none of them is a generating station in Northern Ireland, and

(c)

that the electricity has been supplied by a Northern Ireland supplier to customers in Northern Ireland.

(8)

The matters within this subsection are—

(a)

that the generating station, or, in the case of a certificate issued otherwise than to the operator of a generating station, a generating station specified in the certificate, has generated from renewable sources the amount of electricity stated in the certificate, and

(b)

that the electricity has been used in a permitted way.

(9)

The matters within this subsection are—

(a)

that two or more generating stations have, between them, generated from renewable sources the amount of electricity stated in the certificate, and

(b)

that the electricity has been used in a permitted way.

(10)

For the purposes of subsections (8) and (9), electricity generated by a generating station, or generating stations, of any description is used in a permitted way if—

(a)

it is used in one of the ways mentioned in subsection (11), and

(b)

that way is specified in the order as a permitted way—

(i)

in relation to all generating stations, or

(ii)

in relation to generating stations of that description.

(11)

Those ways are—

(a)

being consumed by the operator of the generating station or generating stations by which it was generated;

(b)

being supplied to customers in Great Britain through a private wire network;

(c)

being provided to a distribution system or a transmission system in circumstances in which its supply to customers cannot be demonstrated;

(d)

being used, as respects part, as mentioned in one of paragraphs (a), (b) or (c) and as respects the remainder—

(i)

as mentioned in one of the other paragraphs, or

(ii)

as respects part, as mentioned in one of the other paragraphs and, as respects the remainder, as mentioned in the other;

(e)

being used, as respects part, as mentioned in paragraph (a), (b), (c) or (d) and, as respects the remainder, by being supplied by an electricity supplier to customers in Great Britain or by a Northern Ireland supplier to customers in Northern Ireland, or both.

(12)

Subsection (11) of section 32B (meaning of supply of electricity through a private wire network) applies for the purposes of subsection (11)(b) as it applies for the purposes of subsection (10)(b) of that section.

32TNI certificates

(1)

A certificate purchase order may (subject to subsection (3)) provide for the Northern Ireland authority to issue from time to time, in accordance with such criteria (if any) as are specified in the order, a certificate (“a NI certificate”) to—

(a)

the operator of a generating station in Northern Ireland, or

(b)

if the order so provides, a person of any other description.

(2)

A NI certificate is to certify—

(a)

the matters within subsection (4), or

(b)

if the order provides that a certificate may certify the matters within subsection (5), (6) or (7), the matters within that subsection.

(3)

A NI certificate certifying that an amount of electricity has been generated from renewable sources in any period may not be issued if—

(a)

an order under Article 52 of the Energy (Northern Ireland) Order 2003 is in force, and

(b)

a Northern Ireland RO certificate has been, or could be, issued under that order in respect of the same electricity.

(4)

The matters within this subsection are—

(a)

that the generating station, or, in the case of a certificate issued otherwise than to the operator of a generating station, a generating station in Northern Ireland specified in the certificate, has generated from renewable sources the amount of electricity stated in the certificate, and

(b)

that it has been supplied by a Northern Ireland supplier to customers in Northern Ireland.

(5)

The matters within this subsection are—

(a)

that two or more generating stations in Northern Ireland have, between them, generated from renewable sources the amount of electricity stated in the certificate, and

(b)

that it has been supplied by a Northern Ireland supplier to customers in Northern Ireland.

(6)

The matters within this subsection are—

(a)

that the generating station, or, in the case of a certificate issued otherwise than to the operator of a generating station, a generating station in Northern Ireland specified in the certificate, has generated from renewable sources the amount of electricity stated in the certificate, and

(b)

that the electricity has been used in a permitted way.

(7)

The matters within this subsection are—

(a)

that two or more generating stations in Northern Ireland have, between them, generated from renewable sources the amount of electricity stated in the certificate, and

(b)

that the electricity has been used in a permitted way.

(8)

For the purposes of subsections (6) and (7), electricity generated by a generating station, or generating stations, of any description is used in a permitted way if—

(a)

it is used in one of the ways mentioned in subsection (9), and

(b)

that way is specified in the order as a permitted way—

(i)

in relation to all generating stations, or

(ii)

in relation to generating stations of that description.

(9)

Those ways are—

(a)

being consumed by the operator of the generating station or generating stations by which it was generated;

(b)

being supplied to customers in Northern Ireland through a private wire network;

(c)

being provided to a distribution system located in Northern Ireland, or to transmission system located in Northern Ireland, in circumstances in which its supply to customers in Northern Ireland cannot be demonstrated;

(d)

being used, as respects part, as mentioned in one of paragraphs (a), (b) or (c) and as respects the remainder—

(i)

as mentioned in one of the other paragraphs, or

(ii)

as respects part, as mentioned in one of the other paragraphs and, as respects the remainder, as mentioned in the other;

(e)

being used, as respects part, as mentioned in paragraph (a), (b), (c) or (d) and, as respects the remainder, by being supplied by a Northern Ireland supplier to customers in Northern Ireland.

(10)

Paragraph (9) of Article 54 of the Energy (Northern Ireland) Order 2003 (meaning of supply of electricity through a private wire network) applies for the purposes of subsection (9)(b) as it applies for the purposes of paragraph (8)(b) of that Article.

32USections 32S and 32T: supplemental provision

(1)

A certificate purchase order may provide—

(a)

that no certificates are to be issued in respect of electricity generated in specified cases or circumstances, or

(b)

that certificates are to be issued in respect of a proportion only of the electricity generated in specified cases or circumstances.

(2)

In particular, provision made by virtue of subsection (1) may specify—

(a)

electricity generated using specified descriptions of renewable sources,

(b)

electricity generated by specified descriptions of generating station, or

(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;

(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 proportion;

(c)

provision authorising the relevant authority, in specified circumstances, 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 relevant authority, and

(ii)

for the results of that analysis to be made available to the relevant authority.

(4)

In the case of electricity generated by a generating station fuelled or driven—

(a)

partly by renewable sources, and

(b)

partly by fossil fuel (other than waste which constitutes a renewable source),

only the proportion attributable to the renewable sources is to be regarded as generated from such sources.

(5)

A certificate purchase order may specify—

(a)

how the proportion referred to in subsection (4) is to be determined, and

(b)

the consequences for the issuing of certificates if a generating station of the type mentioned in that subsection uses more than a specified proportion of fossil fuel during a specified period.

(6)

Those consequences may include the consequences that no certificates are to be issued in respect of any electricity generated by that generating station during that period.

(7)

A certificate purchase order may provide that ownership of a certificate may be transferred—

(a)

only to persons of a specified description;

(b)

only if other specified conditions are met.

(8)

A certificate purchase order may specify circumstances in which the relevant authority may revoke a certificate before the certificate purchase obligation in respect of the certificate is discharged (whether before or after the certificate is presented for payment).

(9)

A certificate purchase order must—

(a)

prohibit the issue of GB certificates certifying that electricity has been supplied to customers in Northern Ireland by virtue of section 32S(5) or (7) where the Northern Ireland authority has notified the Authority that it is 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 presentation for payment for the purposes of the certificate purchase obligation.

(10)

A certificate purchase order may make provision requiring a person to whom a certificate is issued to pay to the relevant authority an amount equal to any amount that has been paid in respect of the certificate under the certificate purchase obligation if it appears to the authority that—

(a)

the certificate should not have been issued to that person, and

(b)

it is not possible to secure the recovery of such an amount by refusing to issue another certificate to the person.

(11)

Provision under subsection (10) may include provision about enforcement and appeals.

(12)

The Authority must pay any amounts it receives by virtue of subsection (10) into the Consolidated Fund.

(13)

The Northern Ireland authority must pay any amounts it receives by virtue of subsection (10) into the Consolidated Fund of Northern Ireland.

32VCertificate purchase orders: amounts of electricity stated in certificates

(1)

A certificate purchase order may specify the amount of electricity to be stated in each certificate, and different amounts may be specified in relation to different cases or circumstances.

(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 station;

(c)

electricity generated in different ways.

(3)

In this section “banding provision” means provision made in a certificate purchase 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 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;

(c)

the effect of paragraph 19 of Schedule 6 to the Finance Act 2000 (supplies of electricity from renewable sources exempted from the climate change levy) in relation to electricity generated from each of those sources;

(d)

the desirability of securing the long term growth, and economic 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 certificate issued by the relevant authority, and the impact this will have on consumers;

(f)

the potential contribution of electricity generated from each 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, an EU obligation.

(5)

For the purposes of subsection (4)(a), the costs associated with 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 income connected with—

(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 by the Secretary of State, no subsequent order containing such provision may be made by the Secretary of State except following a review held by virtue of subsection (8).

(8)

A certificate purchase order 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 satisfied.

32WSection 32V: transitional provision and savings

(1)

This section applies where a certificate purchase order contains banding provision.

(2)

The order may provide for the effect of any banding provision made in an earlier such order to continue, in such circumstances as may be specified, in relation to—

(a)

the electricity generated by generating stations of such descriptions as may be specified, or

(b)

so much of the electricity as may be determined in accordance with the order.

(3)

The order may provide for—

(a)

the effect of any banding provision made in a renewables obligation order by virtue of section 32D(1) to apply, in such circumstances as may be specified, in relation to GB certificates as it applied in relation to renewables obligation certificates;

(b)

the effect of any banding provision made in an order under Article 52 of the Energy (Northern Ireland) Order 2003, by virtue of Article 54B(1) of the Order, to apply, in such circumstances as may be specified, in relation to NI certificates as it applied in relation to Northern Ireland RO certificates.

(4)

Section 32V(4) and (7) do not apply in relation to provision of the kind mentioned in subsection (2) or (3) above.

(5)

Subsection (7) applies to a generating station in respect of which a statutory grant has been awarded if—

(a)

the generating station is of a specified description, or

(b)

the circumstances of the case meet specified requirements.

(6)

The requirements specified under subsection (5)(b) may relate to the time when the grant was awarded (whether a time before or after the coming into force of this section).

(7)

A certificate purchase order which contains banding provision may provide for the operation of that provision in relation to electricity generated by a generating station to which this subsection applies 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 person who made the grant (“the payer”) the whole or a specified part of the grant or part before the repayment date,

(b)

to pay to the payer interest on an amount repayable under paragraph (a) for such period, and at such rate, as may be determined in accordance with the order (which may confer the function of making the determination on a person), 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.

(8)

For the purposes of subsection (7)—

(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.

(9)

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 research), or

(b)

any other grant which is payable out of public funds and awarded under or by virtue of an Act or other statutory provision (as defined by section 1(f) of the Interpretation Act (Northern Ireland) 1954).

(10)

This section is without prejudice to section 32Z(1)(b).

32XCertificate purchase orders: information

(1)

A certificate purchase order may provide for—

(a)

the Authority to require a person to provide it with information, or with information of a particular kind, which in the Authority's opinion is relevant to the question whether a GB certificate is, or was or will in future be, required to be issued to the person;

(b)

the Northern Ireland authority to require a person to provide it with information, or with information of a particular kind, which in the authority's opinion is relevant to the question whether a NI certificate is, or was or will in future be, required to be issued to the person.

(2)

That information must be given to the relevant authority in whatever form it requires.

(3)

A certificate purchase order may—

(a)

require operators of generating stations generating electricity (wholly or partly) from biomass to give specified information, or information of a specified kind, to the relevant authority;

(b)

specify what, for this purpose, constitutes “biomass”;

(c)

require the information to be given in a specified form and within a specified period;

(d)

authorise or require the relevant authority to postpone the issue of certificates to the operator of a generating station who fails to comply with a requirement imposed by virtue of paragraph (a) or (c) until such time as the failure is remedied;

(e)

authorise or require the relevant authority to refuse to issue certificates to such a person or to refuse to issue them unless the failure is remedied within a specified period.

(4)

The relevant authority may publish information obtained by virtue of subsection (3).

(5)

No person is required by virtue of this section to provide any information which the person could not be compelled to give in evidence in civil proceedings in the High Court or, in Scotland, the Court of Session.

32YCertificate purchase orders: corresponding provision

(1)

This section applies where the Secretary of State exercises a listed power in the making of a certificate purchase order.

(2)

The Secretary of State must—

(a)

so far as the order is made for a GB purpose, exercise the listed power in the way that the Secretary of State considers will replicate the effect of provision contained in a renewables obligation order (whenever made, and whether or not made by the Secretary of State) by virtue of the equivalent GB power;

(b)

so far as the order is made for a NI purpose, exercise the listed power in the way that the Secretary of State considers will replicate the effect of provision contained in an order under Article 52 of the 2003 NI Order (whenever made) by virtue of the equivalent NI power.

(3)

The duty in subsection (2) to exercise any listed power in the way mentioned in that subsection applies only to the extent that it appears to the Secretary of State that—

(a)

it is reasonably practicable to exercise the listed power in that way, and

(b)

exercising the power in that way is not inconsistent with other duties or requirements of the Secretary of State (whether arising under this Act or another enactment, by virtue of any EU obligation or otherwise).

(4)

In the Table—

(a)

a “listed power” is any power specified in the first column;

(b)

the “equivalent GB power”, in relation to a listed power, is the power specified in the corresponding entry in the second column;

(c)

the “equivalent NI power”, in relation to a listed power, is the power specified in the corresponding entry in the third column, and in that column references to an Article are to an Article of the 2003 NI Order.

Listed power	Equivalent GB power	Equivalent NI power
Section 32O(2)(a)	Sections 32A(2)(a) and 32G(2)(a)	Articles 53(2)(a) and 55(2)(a)
Section 32O(2)(b)	Sections 32A(2)(b) and 32G(2)(c)	Articles 53(2)(b) and 55(2)(c)
Section 32O(2)(c)	Section 32G(2)(e)	Article 55(2)(e)
Section 32O(2)(f)	Section 32A(2)(c)	Article 53(2)(c)
Section 32S	Section 32B	---
Section 32T	---	Article 54
Section 32U(5) and (6)	Section 32C(5) and (6)	Article 54A(5) and (6)
Section 32V(1)	Section 32D(1)	Article 54B(1)
Section 32W(5) to (8)	Section 32E(4) to (6) and (8)	Article 54C(4) to (7)
Section 32X	Section 32J	Article 55C
Section 32Z2(2) (so far as relating to definition of “renewable sources”) and (3)	Section 32M (so far as relating to that definition) and (2)	Article 55F(1) (so far as relating to that definition) and (2)
Section 32Z2(9)	Section 32M(7)	Article 55F(3)

(5)

The duty in subsection (2), so far as it has effect in relation to the exercise of the listed power under section 32V(1) to specify different amounts of electricity in relation to different cases or circumstances, applies only to the first exercise of that listed power.

(6)

The relevant part of Great Britain to which a renewables obligation order relates may be ignored for the purposes of subsection (2)(a).

(7)

It does not matter for the purposes of subsection (2) whether or not a renewables obligation order, or an order made under Article 52 of the 2003 NI Order, is in force at the time when the listed powers in question are being exercised.

(8)

In this section—

“2003 NI Order” means the Energy (Northern Ireland) Order 2003 (S.I. 2003/419 (N.I. 6));

“GB purpose” means the purpose of imposing the certificate purchase obligation on the purchasing body of GB certificates;

“NI purpose” means the purpose of imposing the certificate purchase obligation on the purchasing body of NI certificates.

32ZCertificate purchase orders: general provision

(1)

A certificate purchase order may—

(a)

make further provision as to the functions of the relevant authority in relation to matters dealt with by the order;

(b)

make transitional provision and savings;

(c)

provide for anything falling to be calculated or otherwise determined under the order to be calculated or determined by such persons, in accordance with such procedure and by reference to such matters and to the opinion of such persons, as may be specified in the order;

(d)

make different provision for different cases or circumstances.

(2)

Provision made by virtue of subsection (1)(b) may, in particular, include provision for—

(a)

renewables obligation certificates issued in respect of a period before the imposition of the certificate purchase obligation to be treated as if they were GB certificates issued in respect of a subsequent period for which the order is in force;

(b)

Northern Ireland RO certificates issued in respect of a period before the imposition of the certificate purchase obligation to be treated as if they were NI certificates issued in respect of a subsequent period for which the order is in force.

(3)

Provision made by virtue of subsection (1)(d) may, in particular, make—

(a)

different provision in relation to different suppliers;

(b)

different provision in relation to generating stations of different descriptions;

(c)

different provision in relation to different localities or different parts of the United Kingdom.

(4)

In subsection (3) “supplier” means an electricity supplier or a Northern Ireland supplier.

(5)

The Authority and the Northern Ireland authority may enter into arrangements for the Authority to act on behalf of the Northern Ireland authority for, or in connection with, the carrying out of any functions conferred on the Northern Ireland authority under, or for the purposes of, a certificate purchase order.

(6)

The duties imposed on the Secretary of State—

(a)

by section 3A (principal objective and general duties in carrying out functions under this Part), and

(b)

by section 132(2) of the Energy Act 2013 (duties in relation to strategy and policy statement),

do not apply in relation to the exercise of a power under section 32N to make a certificate purchase order so far as it is made for or in connection with imposing the certificate purchase obligation on the purchasing body of NI certificates.

32Z1Certificate purchase orders: procedure

(1)

Before making a certificate purchase order, the Secretary of State must consult—

(a)

the Authority,

(b)

the Northern Ireland authority,

(c)

the Council,

(d)

the General Consumer Council for Northern Ireland,

(e)

such electricity suppliers and Northern Ireland suppliers that may be required to pay the certificate purchase levy as the Secretary of State considers appropriate,

(f)

such generators of electricity from renewable sources as the Secretary of State considers appropriate, and

(g)

such other persons, if any, as the Secretary of State considers appropriate.

(2)

A certificate purchase order is not to be made unless a draft of the instrument containing it has been laid before and approved by a resolution of each House of Parliament.

(3)

The Secretary of State must, subject to subsection (5), consult the Scottish Ministers before making a certificate purchase order that extends to Scotland.

(4)

The Secretary of State must, subject to subsection (5), obtain the consent of the Northern Ireland department before making a certificate purchase order that extends to Northern Ireland.

(5)

Except as provided by subsection (6), the Secretary of State is not required to—

(a)

consult the Scottish Ministers under subsection (3), or

(b)

obtain the consent of the Northern Ireland department under subsection (4),

in respect of any provision of a certificate purchase order that is made by virtue of section 32O(2)(m), 32P or 32Q (which together confer power to make provision about the certificate purchase levy).

(6)

Designation of the Northern Ireland department as the administrator of the certificate purchase levy by virtue of section 32P(8)(b) requires the consent of that department.

32Z2Interpretation of sections 32N to 32Z2

(1)

In this section and sections 32N to 32Z1 (“the relevant sections”), the following terms have the meanings given in section 32M(1)—

• “fossil fuel” (but see subsection (4));

• “generated”;

• “Northern Ireland authority”;

• “Northern Ireland supplier”;

• “renewables obligation certificate”;

• “renewables obligation order”.

(2)

In the relevant sections—

“administrator”, in relation to the certificate purchase levy, is to be construed in accordance with section 32P(7) to (10);

“banding provision” is to be construed in accordance with section 32V(3);

“CFD counterparty” has the same meaning as in Chapter 2 of Part 2 of the Energy Act 2013 (see section 7 of that Act);

“certificate purchase levy” is to be construed in accordance with section 32P;

“certificate purchase order” is to be construed in accordance with section 32N;

“the certificate purchase obligation” is to be construed in accordance with section 32N(3);

“distribution system” includes a distribution system within the meaning of Part 2 of the Electricity (Northern Ireland) Order 1992, and “distributing” is to be construed accordingly;

“GB certificate” is to be construed in accordance with section 32S;

“NI certificate” is to be construed in accordance with section 32T;

“the Northern Ireland department” means the Department of Enterprise, Trade and Investment;

“Northern Ireland RO certificate” means a certificate issued by the Northern Ireland authority in accordance with provision included in an order under Article 52 of the Energy (Northern Ireland) Order 2003;

“the purchasing body of GB certificates” is to be construed in accordance with section 32N(4);

“the purchasing body of NI certificates” is to be construed in accordance with section 32N(5);

“relevant authority” means—

(a)

in relation to GB certificates, the Authority;

(b)

in relation to NI certificates, the Northern Ireland authority;

“relevant purchasing body” means—

(a)

in relation to GB certificates, the purchasing body of GB certificates;

(b)

in relation to NI certificates, the purchasing body of NI certificates;

“renewable sources” means sources of energy other than fossil fuel or nuclear fuel, but includes waste of which not more than a specified proportion is waste which is, or is derived from, fossil fuel;

“specified”, in relation to a certificate purchase order, means specified in the order;

“transmission system” includes a transmission system within the meaning of Part 2 of the Electricity (Northern Ireland) Order 1992, and “transmitting” is to be construed accordingly.

(3)

For the purposes of the definition of “renewable sources”, a certificate purchase order may make provision—

(a)

about what constitutes “waste”;

(b)

about how the proportion of waste which is, or is derived from, fossil fuel is to be determined;

(c)

about what, subject to such exceptions as may be specified, constitutes sufficient evidence of that proportion in any particular case;

(d)

authorising the relevant authority, in specified circumstances, 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 relevant authority;

(ii)

for the results of that analysis to be made available to the relevant authority.

(4)

In the application of the relevant sections to Northern Ireland, “fossil fuel” includes peat.

(5)

In the relevant sections “Northern Ireland” does not include any part of the territorial sea of the United Kingdom, but this is subject to subsection (6).

(6)

A certificate purchase order may provide that “Northern Ireland” includes the territorial sea adjacent to Northern Ireland.

(7)

An Order in Council under section 98(8) of the Northern Ireland Act 1998 (apportionment of sea areas) has effect for the purposes of this section if, or to the extent that, the Order is expressed to apply—

(a)

by virtue of this subsection, for those purposes, or

(b)

if no provision has been made by virtue of paragraph (a), for the general or residual purposes of that Act.

(8)

References in the relevant sections 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 Ireland) Order 1992.

(9)

A certificate purchase order may make provision, for the purposes of the relevant sections, about the circumstances in which electricity is to be regarded as having been supplied—

(a)

to customers in Great Britain;

(b)

to customers in Northern Ireland.”