The Renewables Obligation (Amendment) Order 2004

Explanatory Note

(This note is not part of the Order)

This Order amends the Renewables Obligation Order 2002 (2002 No. 914) (“the Renewables Obligation Order”), which imposes an obligation (“the renewables obligation”) on all electricity suppliers, which are licensed under the Electricity Act 1989 and which supply electricity in England and Wales, to supply to customers in Great Britain specified amounts of electricity generated by using renewable sources.

Article 2(7) provides for the issue of renewables obligation certificates (“ROCs”) to the operators of generating stations with a capacity of 50 kilowatts or less by enabling ROCs to be issued on the basis of annual rather than monthly output.

Article 2(8) establishes a timetable determining the extent to which electricity suppliers may satisfy their renewables obligation by producing ROCs issued in respect of generating stations fuelled partly by biomass and partly by fossil fuel.

Article 2(13) provides for electricity suppliers rather than generating station operators to make declarations to the Authority in certain circumstances.

Articles 2(18) and 2(24) determine the eligibility for ROCs of generating stations situated at locations subject to a Non-Fossil Fuel Obligation Order.

Article 2(22) establishes a timetable governing the percentage of energy content that must be derived from energy crops in biomass which is used to fuel stations that are also fuelled by fossil fuel.

Article 2(28) provides for the basis on which the fuel by which a generating station is fuelled is to be determined.

Article 2(33) provides for the receipt and distribution of “late” payments into the buyout fund established by article 12 of the Renewables Obligation Order (payments into the fund being an alternative means of compliance with the renewables obligation).

Regulatory Impact Assessments are available on DTI’s website under http://www.dti.gov.uk/energy/renewables/policy/closed_consultations.shtml Copies have been placed in the libraries of both Houses of Parliament.