The Renewables Obligation Order 2015

This Order may be cited as the Renewables Obligation Order 2015.

Subject to paragraph (3), this Order comes into force on the first day of the month following that in which it is made.

Articles 45(4)(d) and (5)(a) and 48 come into force on the first day of the second month following that in which this Order is made.

Subject to paragraph (5), this Order extends to England and Wales only.

Article 97 also extends to Scotland.

In this Order—

• “the Act” means the Electricity Act 1989 M7;

• “2009 Order” means the Renewables Obligation Order 2009 M8;

• “2013/14 capacity” means—

  1. a

     in relation to a generating station accredited on or before 31st March 2013, any capacity which, in the Authority's view—

     1. i

        forms part of the station from a date no earlier than 1st April 2013 and no later than 31st March 2014, and

     2. ii

        does not form part of the original capacity of the station,

  2. b

     in relation to a grace period generating station, any capacity which, in the Authority's view—

     1. i

        forms part of the station from a date no later than 31st March 2014, and

     2. ii

        does not form part of the original capacity of the station,

  3. c

     in relation to a generating station which—

     1. i

        was not accredited on or before 31st March 2013,

     2. ii

        was accredited on or before 31st March 2014, and

     3. iii

        is not a grace period generating station,

     the original capacity of the station, together with any additional capacity which, in the Authority's view, forms part of the station from a date no later than 31st March 2014;

• “2013/15 capacity” means any capacity which is 2013/14 capacity or 2014/15 capacity;

• “2014/15 capacity” means—

  1. a

     in relation to a generating station accredited on or before 31st March 2014, any capacity which, in the Authority's view—

     1. i

        forms part of the station from a date no earlier than 1st April 2014 and no later than 31st March 2015, and

     2. ii

        does not form part of the original capacity of the station,

  2. b

     in relation to a generating station which—

     1. i

        was not accredited on or before 31st March 2014, and

     2. ii

        was accredited on or before 31st March 2015,

     the original capacity of the station, together with any additional capacity which, in the Authority's view, forms part of the station from a date no later than 31st March 2015;

• “2015/16 capacity” means—

  1. a

     in relation to a generating station accredited on or before 31st March 2015, any capacity which, in the Authority's view—

     1. i

        forms part of the station from a date no earlier than 1st April 2015 and no later than 31st March 2016, and

     2. ii

        does not form part of the original capacity of the station,

  2. b

     in relation to a generating station which—

     1. i

        was not accredited on or before 31st March 2015, and

     2. ii

        was accredited on or before 31st March 2016,

     the original capacity of the station, together with any additional capacity which, in the Authority's view, forms part of the station from a date no later than 31st March 2016;

• “accreditation”, in relation to a generating station, means accreditation of the station as one which is capable of generating electricity from renewable sources by the Authority or the Northern Ireland authority (and includes an accreditation granted before this Order came into force);

• “accredited” is to be construed in accordance with the definition of “accreditation”;

• “advanced fuel” means a liquid or gaseous fuel which is produced directly or indirectly from the gasification or the pyrolysis of—

  1. a

     waste, or

  2. b

     biomass;

• “anaerobic digestion” means the bacterial fermentation of organic material in the absence of free oxygen;

• “ancillary purposes”, in relation to fossil fuel or waste used in a combustion unit or by a generating station, means fossil fuel or waste which is used in that combustion unit or by the station for—

  1. a

     cleansing other fuels from the station's combustion system prior to using fossil fuel or waste to heat the combustion system to its normal temperature,

  2. b

     the heating of the station's combustion system to its normal operating temperature or the maintenance of that temperature,

  3. c

     the ignition of fuels of low or variable calorific value,

  4. d

     corrosion control,

  5. e

     emission control,

  6. f

     fouling reduction, or

  7. g

     standby generation or the testing of standby generation capacity (where “standby generation” means the generation of electricity by equipment which is not used frequently or regularly to generate electricity and where all the electricity generated by that equipment is used by the generating station);

• “animal excreta” means excreta produced by animals and includes biomass wholly derived from excreta produced by animals;

• “biomass” is to be construed in accordance with article 3, except for the purposes of article 95;

• “biomaterial” means the biodegradable part of—

  1. a

     products, waste and residues of biological origin resulting from agriculture (including vegetal and animal substances), forestry and related industries (including fisheries and aquaculture), and

  2. b

     industrial, commercial and municipal waste;

• “BS EN 15359:2011” means the document identified by Standard Number BS EN:15359:2011 and entitled “Solid recovered fuels. Specifications and classes” published by the British Standards Institution on 30th November 2011 M9;

• “BS EN 15402:2011” means the document identified by Standard Number BS EN 15402:2011 and entitled “Solid recovered fuels. Determination of the content of volatile matter” published by the British Standards Institution on 31st March 2011 M10;

• “BS EN 15415-1:2011” means the document identified by Standard Number BS EN 15415-1:2011 and entitled “Solid recovered fuels. Determination of particle size distribution. Screen method for small dimension particles” published by the British Standards Institution on 30th September 2011 M11;

• “BS EN 15590:2011” means the document identified by Standard Number BS EN 15590:2011 and entitled “Solid recovered fuels. Determination of the current rate of aerobic microbial activity using the real dynamic respiration index” published by the British Standards Institution on 30th September 2011 M12;

• “CFD” has the meaning given in section 6(2) of the Energy Act 2013 M13;

• F4“CHPQA” means the Combined Heat and Power Quality Assurance Standard, Issue 6, October 2016 and Guidance Note 44 (Use of CHPQA in respect of the Renewables Obligation and Contracts for Difference), Issue 6, October 2016;M64

• “CHP station” means a station which generates electricity and is (or may be) operated for purposes including the supply to any premises of—

  1. a

     heat produced in association with electricity, or

  2. b

     steam produced from, or air or water heated by, such heat;

• “civil works”, in relation to a hydro generating station, means all man-made structures, and man-made works for holding water which are located on the inlet side of a turbine (“turbine A”), excluding any such structures or works which supply another turbine before water is supplied to the structures and works which supply turbine A;

• “combustion unit” means a boiler, turbine or engine;

• “commissioned”, in relation to a generating station, means the completion of such procedures and tests in relation to that station as constitute, at the time they are undertaken, the usual industry standards and practices for commissioning that type of generating station in order to demonstrate that that generating station is capable of commercial operation;

• “connected person”, in relation to the owner or operator of a generating station, or any party to a NFFO arrangement, means any person connected to that owner, operator or party within the meaning of section 1122 of the Corporation Tax Act 2010 M14;

• “declared net capacity”, in relation to a generating station, means the maximum capacity at which the station could be operated for a sustained period without causing damage to it (assuming the source of power used by it to generate electricity was available to it without interruption) less the amount of electricity that is consumed by the station;

• “delivery body” means—

  1. a

     the person operating the national transmission system for Great Britain (“the national system operator”), or

  2. b

     if the national system operator's functions under Chapter 2 of Part 2 of the Energy Act 2013 M15 have been transferred to an alternative delivery body, that body;

• “designated electricity supplier” has the meaning given by article 7(1);

• F17“EII excluded electricity” means electricity which constitutes EII excluded electricity within the meaning of regulation 6(1) of the Electricity Supplier Obligations (Amendment & Excluded Electricity) Regulations 2015;M65

• “energy content”, in relation to any substance, means the energy contained within that substance (whether measured by a calorimeter or determined in some other way) expressed in terms of the substance's gross calorific value within the meaning of British Standard BS 7420:1991 (Guide for determination of calorific values of solid, liquid and gaseous fuels (including definitions)) published by the British Standard Institute on 28th June 1991 M16;

• “energy crops” means—

  1. a

     a perennial crop planted at high density, the stems of which are harvested above ground level at intervals of less than twenty years and which is one of the following—

     1. i

        Acer pseudoplatanus (also known as sycamore),

     2. ii

        Alnus (also known as alder),

     3. iii

        Betula (also known as birch),

     4. iv

        Castanea sativa (also known as sweet chestnut),

     5. v

        Corylus avellana (also known as hazel),

     6. vi

        Fraxinus excelsior (also known as ash),

     7. vii

        Populus (also known as poplar),

     8. viii

        Salix (also known as willow),

     9. ix

        Tilia cordata (also known as small-leaved lime); or

  2. b

     a perennial crop which is one of the following—

     1. i

        Arundo donax (also known as giant reed),

     2. ii

        Bambuseae, where the crop was planted after 31st December 1989 and is grown primarily for the purpose of being used as fuel,

     3. iii

        Miscanthus,

     4. iv

        Panicum,

     5. v

        Pennisetum (other than Pennisetum setaceum (also known as fountain grass), Pennisetum clandestinum (also known as kikuyu grass) and Pennisetum villosum (also known as feathertop grass)),

     6. vi

        Phalaris;

• “excluded capacity” has the meaning given in article 45;

• “feed-in tariff scheme” means a scheme of financial incentives which the Secretary of State establishes, or for the administration of which the Secretary of State makes arrangements, in exercise of the power in section 41(1) of the Energy Act 2008 M17;

• “fossil derived bioliquid” means bioliquid produced directly or indirectly from—

  1. a

     coal,

  2. b

     lignite,

  3. c

     natural gas (within the meaning of the Energy Act 1976 M18),

  4. d

     crude liquid petroleum, or

  5. e

     petroleum products (within the meaning of the Energy Act 1976);

• “forest” means land of an area more than one hectare which includes trees providing a tree canopy cover of at least 20%;

• “gasification” means the substoichiometric oxidation or steam reformation of a substance to produce a gaseous mixture containing two or all of the following: oxides of carbon, methane and hydrogen;

• “grace period generating station” has the meaning given by article 6;

• “greenhouse gas criteria” means—

  1. a

     in the case of bioliquid, the criteria set out in Schedule 1,

  2. b

     in all other cases, the criteria set out in Part 1 of Schedule 2;

• “hydro generating station” means a generating station driven by water (other than a generating station driven by tidal flows, waves, ocean currents or geothermal sources) and includes all turbines supplied with water by or from the same civil works, except any turbine driven by a compensation flow supplied by or from those civil works in a natural water course where there is a statutory obligation to maintain that compensation flow in that water course (in which case that turbine and associated infrastructure is to be regarded as a separate hydro generating station);

• “interconnector” means so much of an electric line or other electric plant as subsists wholly or primarily for the purposes of the conveyance of electricity between a transmission or distribution system in Great Britain and an equivalent system in another country (including Northern Ireland);

• “investment contract” has the meaning given in paragraph 1 of Schedule 2 to the Energy Act 2013 M19;

• “ISAE 3000” means the International Standard on Assurance Engagements 3000 Revised, Assurance Engagements Other than Audits or Reviews of Historical Financial Information M20 published by the International Federation of Accountants;

• “land criteria” means the criteria set out in Schedule 3;

• “landfill” has the meaning given by Article 2(g) of Council Directive 1999/31/EC on the landfill of waste M21;

• “landfill gas” means gas formed by the digestion of material in a landfill;

• “linked person”, in relation to a person who is a party to a NFFO arrangement (“the first person”), means another person who has given or who has arranged to give to the first person or has ensured or arranged to ensure that the first person is given, a financial or other inducement relating to any right or interest in, or in respect of, the construction or operation of a generating station at the location;

• “microgenerator” means a generating station which has a declared net capacity of 50 kilowatts or less;

• “municipal waste” has the same meaning as in section 21 of the Waste and Emissions Trading Act 2003 M22;

• “NFFO arrangement” means an arrangement which was originally made pursuant to a Non-Fossil Fuel Order (and includes any replacement of such an arrangement where that replacement was made pursuant to an order made under section 67 of the Utilities Act 2000 M23);

• “NIRO Order” means any order made under Articles 52 to 55F of the Energy (Northern Ireland) Order 2003 M24;

• “Non-Fossil Fuel Order” means any of the following Orders—

  1. a

     the Electricity (Non-Fossil Fuel Sources) (England and Wales) Order 1997 M25, and

  2. b

     the Electricity (Non-Fossil Fuel Sources) (England and Wales) Order 1998 M26;

• “Northern Ireland certificate” means a renewables obligation certificate issued by the Northern Ireland authority under the Energy (Northern Ireland) Order 2003 and pursuant to a NIRO Order;

• “obligation period” means the period starting on 1st April 2016 and ending on 31st March 2017 or any subsequent period of 12 months (ending with the period of 12 months ending on 31st March 2037), except for the purposes of article 95;

• “offshore”, in relation to a generating station which generates electricity from wind, means a generating station which—

  1. a

     has its wind turbines situated wholly in offshore waters, and

  2. b

     is not connected to dry land by means of a permanent structure which provides access to land above the mean low water mark;

• “offshore waters” means—

  1. a

     waters in or adjacent to the United Kingdom which are between the mean low water mark and the seaward limits of the territorial sea, and

  2. b

     waters within an area designated under section 1(7) of the Continental Shelf Act 1964 M27;

• “offshore wind turbine” means a wind turbine which forms part of a generating station which is offshore;

• “on land”, in relation to the location of a generating station, means wholly or partly on land above mean high water level;

• “original capacity”, in relation to a generating station, means the generating capacity of the station as accredited;

• “permitted ancillary purposes” means—

  1. a

     in relation to fossil fuel or waste used in a combustion unit, the use of fossil fuel or waste—

     1. i

        in the combustion unit for ancillary purposes, and

     2. ii

        in a month in which the energy content of the fossil fuel or waste so used (or, where both are so used, their combined energy content) does not exceed 10% of the energy content of all the energy sources used in the combustion unit to generate electricity during that month,

  2. b

     in relation to fossil fuel or waste used by a generating station, the use of fossil fuel or waste—

     1. i

        by the station for ancillary purposes, and

     2. ii

        in a month in which the energy content of the fossil fuel or waste so used (or, where both are so used, their combined energy content) does not exceed 10% of the energy content of all the energy sources used by the station to generate electricity during that month;

• F51...

• “plant”, with reference to plant matter, includes shrubs and trees;

• “post-2016 capacity” means—

  1. a

     in relation to a generating station accredited on or before 31st March 2016, any capacity which, in the Authority's view—

     1. i

        forms part of the station from a date no earlier than 1st April 2016, and

     2. ii

        does not form part of the original capacity of the station,

  2. b

     in relation to a generating station which—

     1. i

        is accredited, and

     2. ii

        was not accredited on or before 31st March 2016,

     the original capacity of the station, together with any additional capacity which, in the Authority's view, forms part of the station;

• “pre-2013 capacity” means—

  1. a

     in relation to a generating station accredited on or before 31st March 2013, the original capacity of the station, together with any additional capacity, which in the Authority's view, forms part of the station from a date no later than 31st March 2013,

  2. b

     in relation to a grace period generating station, the original capacity of the station;

• “preliminary accreditation”, in relation to a generating station, means accreditation of the station as one which (when commissioned) will be capable of generating electricity from renewable sources by the Authority or the Northern Ireland authority (and includes a preliminary accreditation granted before this Order came into force);

• “pyrolysis” means the thermal degradation of a substance in the absence of any oxidising agent (other than that which forms part of the substance itself) to produce char and one or both of gas and liquid;

• “qualifying CHP station” means a CHP station which has been certified under the CHPQA;

• “qualifying power output”, in relation to a qualifying CHP station, has the meaning given to it in the CHPQA;

• “qualifying proportion”, in relation to electricity generated by a qualifying CHP station, is the proportion which the qualifying power output of the station bears to its total power output;

• “Register” has the meaning given to it in article 93(1);

• “registered holder” has the meaning given to it in paragraph 3 of Schedule 4;

• “Renewables Directive” means Directive 2009/28/EC of the European Parliament and of the Council on the promotion of the use of energy from renewable sources, and in article 83 and Schedules 1 and 3 references to Annex 5 to the Renewables Directive are to Annex 5 as amended from time to time;

• “renewables obligation” has the meaning given to it in article 7(1), except for the purposes of article 95;

• “renewable waste” means waste of which not more than 90% is waste which is, or is derived from, fossil fuel;

• “ROC” means a renewables obligation certificate issued by the Authority under this Order (or under the 2009 Order);

• “RO capacity”, in relation to a generating station, means the generating capacity of the station other than excluded capacity;

• “RO eligible renewable output” is to be construed in accordance with articles 29 and 30;

• “RO input electricity” has the meaning given to it in article 26;

• “RO output electricity” has the meaning given to it in article 27;

• “sewage gas” means gas formed by the anaerobic digestion of sewage (including sewage which has been treated or processed);

• “Solid Recovered Fuel” means solid fuel which—

  1. a

     complies with the classification and specification requirements in BS EN:15359:2011,

  2. b

     is prepared from a waste which is not a hazardous waste (where hazardous waste has the meaning given in Article 3(2) of Directive 2008/98/EC of the European Parliament and of the Council on waste F40, as last amended by F41Directive (EU) 2018/851),

  3. c

     has a maximum rate of oxygen uptake of no more than 1500 milligrams of oxygen per kilogram of volatile solids per hour when measured using the real dynamic respiration test specified in BS EN 15590:2011, and

  4. d

     when subject to a methodology for the determination of particle size in accordance with BS EN 15415-1:2011, is able to pass through an opening measuring no more than 150 millimetres in all dimensions;

• “specified day”, in relation to an obligation period, means the 1st September immediately following it;

• “total input electricity”, in relation to a generating station, means—

  1. a

     the total amount of electricity used by the station for purposes directly related to its operation (including for fuel handling, fuel preparation, maintenance and the pumping of water) whether or not that electricity is generated by the station or used while the station is generating electricity, and

  2. b

     where the station generates electricity wholly or partly from hydrogen (other than hydrogen that constitutes fossil fuel), any electricity—

     1. i

        in respect of which ROCs are or have been issued,

     2. ii

        in respect of which ROCs cannot be issued by virtue of any provision of Part 7, or

     3. iii

        which was not generated from renewable sources,

     and which is used in the production of that hydrogen (regardless of where or by whom the hydrogen is produced);

• “total installed capacity”, in relation to a generating station or to generating capacity of any description, means the maximum capacity at which that generating station or generating capacity could be operated for a sustained period without causing damage to it (assuming the source of power used by it to generate electricity was available to it without interruption);

• “total output electricity”, in relation to a generating station, means the total amount of electricity generated by that station;

• “total power output”, in relation to a qualifying CHP station, has the meaning given to it in the CHPQA;

• “transmission or distribution system” means a transmission or distribution system within the meaning of Part 1 of the Act M28 or an equivalent system in Northern Ireland;

• “UK ROC” means—

  1. a

     a ROC,

  2. b

     a renewables obligation certificate issued by the Authority under a renewables obligation order made by the Scottish Ministers, or

  3. c

     a Northern Ireland certificate;

• “volatile solids” means any mass loss, corrected for moisture, when a solid is heated out of contact with air under the conditions specified, and using the methods, in BS EN 15402:2011; and

• “waste” has the meaning given in Article 3(1) of Directive 2008/98/EC of the European Parliament and of the Council on waste M29 but—

  1. a

     also includes anything derived from waste, and

  2. b

     F18does not include landfill gas, sewage gas or any substance intentionally modified or contaminated to fall within the meaning of “waste” given in Article 3(1) of that Directive M66.

Where two or more of the fuels listed in paragraph (4) are mixed together to form one substance which is then used in a generating station to generate electricity, the provisions of this Order apply in relation to the electricity so generated in the same way as they would apply if the electricity had been generated using those fuels without mixing them together.

Any reference in this Order to the provision of information “in writing” includes the provision of such information by electronic mail, facsimile or similar means which are capable of producing a document containing the text of any communication.

Any reference in this Order to the supply of electricity made to customers in Northern Ireland is to be construed in accordance with the definition of “supply” in Article 3 of the Electricity (Northern Ireland) Order 1992 M30.

A reference in this Order to residue does not, in the case of residue from processing, include a reference to any substance that is a primary aim of a production process or that the process has been deliberately modified to produce.

Accordingly, any reference in this Order to biomass, other than in articles 28, 63, 82 and 84, is to be construed as a reference to biomass or fuel which (by virtue of paragraph (4)) is to be treated as biomass.

For the purposes of this article, “relevant material” means material, other than fossil fuel, which is, or is derived directly or indirectly from, plant matter, animal matter, fungi, algae or bacteria.

For the purposes of this Order, fossil derived bioliquid is to be treated as being in part composed of (or in part derived from) fossil fuel.

For the purposes of sections 32 to 32M of the Act and this Order, the term “renewable sources” includes renewable waste.

In this article—

• “allocating authority” and “waste disposal authority” have the same meaning as in Chapter 1 of Part 1 of the Waste and Emissions Trading Act 2003 M31;

• “waste collection authority” has the same meaning as in Part 2 of the Environmental Protection Act 1990 M32.

In this Order, “grace period generating station” means a generating station to which paragraph (2) applies.

In circumstances where the Authority has reason to believe that the information on which its decision to register a generating station as a grace period generating station was based was incorrect in a material particular, and having regard to those circumstances the Authority considers it appropriate to do so, the Authority may withdraw the registration in question.

The Authority must notify the operator of the generating station in writing of any withdrawal of registration of the station as a grace period generating station.

The renewables obligation is imposed on each electricity supplier supplying electricity in England and Wales (a “designated electricity supplier”).

The renewables obligation is that, subject to articles 67 and 68, each designated electricity supplier must, by the specified day, produce to the Authority, in respect of each megawatt hour of F6relevant electricity that it supplies during an obligation period, the number of UK ROCs determined in accordance with F7articles 13 to F6313C.

To enable the number referred to in paragraph (2) to be determined, the Secretary of State must first determine, for the obligation period in question, calculations A and B and the total number of UK ROCs required to be produced by designated electricity suppliers in accordance with articles 8 to 12.

Where the number of UK ROCs that a designated electricity supplier is required to produce by virtue of paragraph (2) is not a whole number, it is to be rounded to the nearest whole number (one-half being rounded upwards).

Before the start of each obligation period, the Secretary of State is to estimate, in megawatt hours, the total amount of electricity likely to be supplied to customers in Great Britain during that period by designated electricity suppliers and electricity suppliers on whom the renewables obligation has been imposed by an order made under sections 32 to 32M of the Act by the Scottish Ministers.

The figure representing the number of megawatt hours so estimated for an obligation period is to be multiplied by 0.154.

Before the start of each obligation period, the Secretary of State is to estimate, in megawatt hours, the total amount of electricity likely to be supplied to customers in Northern Ireland during that period by electricity suppliers on whom an obligation has been imposed by an order made under Articles 52 to 55F of the Energy (Northern Ireland) Order 2003.

The figure representing the number of megawatt hours so estimated for an obligation period is to be multiplied by 0.063.

The product of the calculation in article 8(2), added to the product of the calculation in article 9(2), is (for the obligation period to which those calculations relate) calculation A.

Where calculation A is not a whole number, it is to be rounded to the nearest whole number (one-half being rounded upwards).

References to calculation A in F9this Part are to be construed accordingly.

Before the start of each obligation period, the Secretary of State is to estimate, in megawatt hours, the total amount of renewable electricity likely to be supplied to customers in the United Kingdom during that period by designated electricity suppliers and electricity suppliers on whom an obligation has been imposed under an order made under sections 32 to 32M of the Act by Scottish Ministers or Articles 52 to 55F of the Energy (Northern Ireland) Order 2003.

Having regard to this estimate, the Secretary of State is to calculate how many UK ROCs are likely to be issued in respect of that renewable electricity during that obligation period.

The figure representing the number of UK ROCs likely to be so issued, increased by 10%, is calculation B for that obligation period.

Where calculation B is not a whole number, it is to be rounded to the nearest whole number (one-half being rounded upwards).

References to calculation B in F10this Part are to be construed accordingly.

In this article “renewable electricity” means electricity which is generated from renewable sources and in respect of which UK ROCs may be issued.

Having determined calculations A and B for an obligation period, the Secretary of State is to determine the total number of UK ROCs required to be produced by designated electricity suppliers (“the total obligation”) for that period in accordance with paragraphs (2) to (4).

Where calculation A is equal to or greater than calculation B for an obligation period, the total obligation for that period is calculation A.

Where calculation B is greater than calculation A for an obligation period, the total obligation for that period is calculation B.

References to the total obligation in F11this Part are to be construed accordingly.

This article applies in respect of an obligation period ending on or before 31st March 2019.

F13Subject to article 13B, where the total obligation for an obligation period is calculation A, in order to discharge its renewables obligation in respect of electricity that it supplies to customers in England and Wales during that period, a designated electricity supplier is required to produce 0.154 UK ROCs for each megawatt hour of electricity so supplied.

F14Subject to article 13B, where the total obligation for an obligation period is calculation B, the number of UK ROCs that a designated electricity supplier is required to produce in order to discharge its renewables obligation in respect of electricity that it supplies to customers in England and Wales during that period is, for each megawatt hour so supplied, equal to—

calculation B for that period  ×  0 .154 calculation A for that period

The Secretary of State must publish, by the 1st October preceding an obligation period, the number of UK ROCs that a designated electricity supplier is required to produce in respect of each megawatt hour of electricity that it supplies to customers in England and Wales during that period in order to discharge its renewables obligation for that period.

This article applies in respect of an obligation period beginning on or after 1st April 2019.

Before the start of an obligation period to which this article applies, the Secretary of State must estimate, in megawatt hours, the total amount of EII excluded electricity likely to be supplied to customers in Great Britain during that period by designated electricity suppliers and electricity suppliers on whom the renewables obligation has been imposed by an order made under sections 32 to 32M of the Act by Scottish Ministers.

F64Subject to article 13C, where the total obligation for the obligation period is calculation A, the number of UK ROCs that a designated electricity supplier is required to produce in order to discharge its renewables obligation is, for each megawatt hour of relevant electricity that it supplies during that period, equal to—

• $\frac{\left(0.154\times C\right)}{\left(C-D\right)}$

F65Subject to article 13C, where the total obligation for the obligation period is calculation B, the number of UK ROCs that a designated electricity supplier is required to produce in order to discharge its renewables obligation is, for each megawatt hour of relevant electricity that it supplies during that period, equal to—

• $\frac{\left(E\times C\right)}{\left(C-D\right)}$

The Secretary of State must publish, by the 1st October preceding the obligation period, the number of UK ROCs that a designated electricity supplier is required to produce in respect of each megawatt hour of relevant electricity that it supplies during that period in order to discharge its renewables obligation for that period.

Subject to paragraph (3), following the publication under article 13(3) of an obligation level, the Secretary of State may revise that obligation level in accordance with paragraph (5).

Before revising an obligation level under paragraph (2), the Secretary of State must estimate, in megawatt hours, the total amount of EII excluded electricity likely to be supplied to customers in Great Britain during the obligation period by designated electricity suppliers and electricity suppliers on whom the renewables obligation has been imposed by an order made under sections 32 to 32M of the Act by Scottish Ministers.

If the Secretary of State revises an obligation level under paragraph (2), the Secretary of State must publish the revised obligation level within seven days.

In this article—

• “2017/18 obligation period” means the obligation period beginning on 1st April 2017;

• “2018/19 obligation period” means the obligation period beginning on 1st April 2018;

• “obligation level” means the number of UK ROCs that a designated electricity supplier is required to produce in respect of each megawatt hour of electricity that it supplies to customers in England and Wales during an obligation period in order to discharge its renewables obligation for that period as determined under article 13(1) or (2);

• “original obligation level” means the obligation level as published under article 13(3);

• “publication date” means the date of publication of the revised obligation level under paragraph (6); and

• “revised obligation level” means the obligation level as revised in accordance with paragraph (5).

The Secretary of State may revise the obligation level published on 27th September 2023 in respect of the 2024/25 obligation period.

The power conferred by paragraph (1) may only be exercised once and may not be exercised after 31st March 2024.

Where, in exercise of the power conferred by paragraph (1), the Secretary of State revises the obligation level in respect of the 2024/25 obligation period, the Secretary of State must publish the revised obligation level within the period of seven days beginning with the day on which that power is exercised.

In exercising the power conferred by paragraph (1), the Secretary of State may provide that the obligation level published on 27th September 2023 applies for part of the 2024/25 obligation period, and the revised obligation level as calculated in accordance with paragraph (4) applies for the remainder of the 2024/25 obligation period.

In this article—

• “2024/25 obligation period” means the obligation period beginning on 1st April 2024; and

• “obligation level” means the number of UK ROCs that a designated electricity supplier is required to produce in respect of each megawatt hour of relevant electricity that it supplies to customers in England and Wales during an obligation period in order to discharge its renewables obligation for that period as determined under article 13A(3) or (4).

A designated electricity supplier may discharge its renewables obligation by the production to the Authority of a Northern Ireland certificate.

A designated electricity supplier may discharge up to 25% of its renewables obligation in respect of an obligation period by producing to the Authority UK ROCs relating to electricity supplied in the immediately preceding obligation period.

Subject to paragraph (4), no more than 4% of a designated electricity supplier's renewables obligation may be satisfied by the production of UK ROCs issued in respect of electricity generated from bioliquid.

A designated electricity supplier must not produce to the Authority a UK ROC which is previously been or has previously been produced to the Northern Ireland authority under a NIRO Order.

For the purposes of sections 32 to 32L of the Act (in particular, for the purposes of a ROC certifying the matters within section 32B(3) or (5)), electricity generated by a generating station which cannot be shown to have been supplied to customers in Great Britain is to be regarded as having been so supplied if and to the extent that the conditions in paragraph (2) or (3) are met.

For the purposes of paragraphs (2) and (3), a generating station is to be treated as if it is located in Northern Ireland if it is neither in Northern Ireland nor on land but is connected directly to a transmission or distribution system (or the part of such a system) that is located in Northern Ireland (and to no other system or part thereof).

For the purposes of sections 32 to 32L of the Act (in particular, for the purposes of a ROC certifying the matters within section 32B(4) or (6)), electricity which cannot be shown to have been supplied to customers in Northern Ireland is to be regarded as having been so supplied if it has been sold through the SEM Pool or under a contract in circumstances where, had the electricity been generated by a generating station mentioned in Article 54(1) of the Energy (Northern Ireland) Order 2003, the Northern Ireland authority would have been entitled to issue a Northern Ireland certificate in respect of it.

In this article—

• “intermediary”, in relation to the operator of a generating station, and “SEM Pool” have the same meaning as they have in Article 34 of the Renewables Obligation Order (Northern Ireland) 2009 M34 or, where that order has been revoked, as they have in any NIRO Order for the time being in force; and

• “Northern Ireland” has the same meaning as in Article 54(1) of the Energy (Northern Ireland) Order 2003.

For the purposes of section 32B(7) and (8) of the Act (in particular, for the purposes of a ROC certifying the matters within section 32B(7) or (8)), electricity generated by a generating station of any description is used in a permitted way if, subject to paragraph (2), it is used in any of the ways mentioned in section 32B(10) of the Act.

The Authority is to issue ROCs.

Subject to paragraphs (3) to (5) and article 19, the Authority is to issue a ROC to the operator of the generating station by which the electricity to which the ROC relates was generated.

Where by virtue of the NFFO arrangement the nominated person is entitled to the electricity, ROCs are to be issued to electricity suppliers notified to the Authority by the nominated person as being purchasers of the electricity and to each in such numbers as are appropriate to the amount of the electricity which the nominated person notifies the Authority each has purchased (subject to the total number of ROCs available to be issued in respect of the electricity).

Where electricity suppliers are entitled to electricity under a NFFO arrangement, ROCs are to be issued to those electricity suppliers, each in proportion to its entitlement.

In this article, “nominated person” has the same meaning as it has in the Electricity from Non-Fossil Fuel Sources Saving Arrangements Order 2000 M35.

This article applies to a ROC which certifies the matters within section 32B(5), (6) or (8) of the Act (a “relevant ROC”).

Where the generating stations to which a relevant ROC relates are operated by two or more persons (“the operators”), that ROC must be issued to an agent appointed for the purpose by the operators.

A notification under paragraph (3) is to be given by the operators (or any of them) or the agent.

Where notice is given under paragraph (3)(b) and received by the Authority, the termination takes effect (subject to paragraph (6)) at the end of the obligation period during which it is given, and until the expiration of that obligation period the Authority must continue to issue any relevant ROCs to the agent.

Notwithstanding that termination of the agent's appointment, after the expiration of that obligation period the Authority must continue to issue relevant ROCs to the agent where those ROCs relate to electricity generated during that obligation period.

Paragraphs (5) and (6) do not apply in any case where the Authority is satisfied, by evidence produced to it, that owing to exceptional circumstances the termination should have immediate effect (in which case the termination takes effect on receipt of the notice under paragraph (3)(b)).

Where a ROC certifying the matters within section 32B(4) or (6) of the Act is to be issued and paragraph (1)(b) cannot be complied with because the electricity in respect of which the ROC is to be issued cannot be shown to have been supplied to customers in Northern Ireland, the person to whom the ROC is to be issued must confirm to the Authority in writing that the electricity in question is to be regarded as having been supplied to customers in Northern Ireland by virtue of article 16(5).

In this article “Northern Ireland” has the same meaning as in Article 54(1) of the Energy (Northern Ireland) Order 2003.

Paragraph (1) does not apply where the person to be issued with a ROC is an electricity supplier.

Once during each obligation period, the person to be issued with a ROC certifying the matters within section 32B(5), (6) or (8) of the Act must confirm to the Authority in writing, whether before or after the generation of the electricity to which the ROC relates, the matters set out in paragraph (2).

The Authority must revoke any ROC which it has issued where the ROC certifies the matters within section 32B(4) or (6) of the Act and the Northern Ireland authority has notified the Authority that it is not satisfied that the electricity in respect of which the ROC was issued has been supplied to customers in Northern Ireland.

In determining whether to revoke a ROC under paragraph (3) or (4), the Authority may disregard any changes to the amounts for RO input electricity, RO output electricity, total input electricity and total output electricity which were used by it to determine a generating station's RO eligible renewable output in a month if satisfied that, in all the circumstances, it is reasonable for it to do so.

Where the Authority revokes a ROC it must delete that ROC from the Register and as soon as reasonably practicable afterwards give notice in writing of such revocation to the person who was the registered holder of the ROC at the time of its revocation.

This article is subject to article 25(2) to (4).

A ROC cannot be revoked where it has been produced to the Authority under article 7 or under article 5 of the 2009 Order.

Nor can a ROC be revoked by the Authority under article 24(2) or (4) more than six years after it has been issued.

Where the Authority would have revoked a ROC (“the original ROC”) under article 24(2) or (4) but for the fact that it has already been produced to it under article 7 or under article 5 of the 2009 Order, the Authority must, subject to paragraph (4), refuse to issue a further ROC (“the further ROC”) in respect of electricity generated by the generating station in relation to which the original ROC was issued.

This article applies for the purposes of this Part.

In any month where the total installed capacity of a generating station does not include any excluded capacity, “RO input electricity”, in relation to that station, means the total input electricity of the station during that month.

In this article, references to electricity used by a generating station for purposes directly related to the operation of excluded capacity or RO capacity include electricity used for those purposes whether or not the electricity was generated by the station or used while the station was generating electricity.

In this article, “operation” includes fuel handling, fuel preparation, maintenance and the pumping of water.

This article applies for the purposes of this Part.

In any month where the total installed capacity of a generating station does not include any excluded capacity, “RO output electricity”, in relation to that station, means the total output electricity of the station during that month.

In any month where the total installed capacity of a generating station includes excluded capacity and all of the electricity generated by the station using RO capacity is measured separately from any electricity generated by the station using excluded capacity, “RO output electricity”, in relation to that station, means the total amount of electricity measured as being generated by the RO capacity during that month.

For the purposes of F35paragraph (2), the greenhouse gas emissions from the use of biomass must be calculated in accordance with paragraphs 3 to 5 of Schedule 2.

Where the number of megawatt hours of RO eligible renewable output in respect of which ROCs are to be issued does not equate to a whole number of ROCs, the number of megawatt hours is to be rounded to the nearest figure which does so equate (and where there are two such figures, the number of megawatt hours is to be rounded upwards).

In this article, “relevant target” has the same meaning as in Part 1 of Schedule 2.

This article is subject to Schedule 6.

Subject to article 30, the RO eligible renewable output of a generating station in any month is equal to

For the purposes of paragraph (2), where a generating station generates electricity from fossil fuel in any month, the amount of electricity so generated is equal to

This article applies to a qualifying CHP station in any month during which it generates electricity from waste (other than waste which constitutes biomass or is used by the station for permitted ancillary purposes or is an advanced fuel or is in the form of a liquid or gaseous fuel produced by means of anaerobic digestion).

The RO eligible renewable output of a generating station to which this article applies in any month is equal to

Paragraph (3) applies for the purposes of this Part.

Where during any month two or more categories of generating capacity form part of the RO capacity of a generating station, the proportion of a station's RO eligible renewable output which is generated by each category of generating capacity is

Paragraph (3) applies for the purposes of this Part.

For the purposes of paragraphs (3) and (4)(c), electricity generated in the way described as “landfill gas heat recovery” in Schedule 5 is to be regarded as not generated from fuel.

In this article—

• “dry mass”, in relation to a fuel, means the mass of the fuel when any water present in it has been removed; and

• “mixed gas” means gas formed by the anaerobic digestion of sewage together with—

  1. a

     renewable waste (other than sewage), or

  2. b

     biomass (other than sewage).

Each ROC is to state the amount of electricity in respect of which it has been issued.

Subject to articles 34 to 41, the amount of electricity to be stated in each ROC is to be determined in accordance with paragraphs (3) to (8).

The amount of electricity to be stated in each ROC to be issued in respect of electricity generated in a way which is not described in the first column of Part 2 of Schedule 5 is 1 megawatt hour.

This article is subject to article 41.

Subject to paragraphs (3) to (6), the amount of electricity to be stated in each ROC issued in respect of relevant electricity is to be determined in accordance with article 33(3) to (7).

But paragraph (3) does not apply in the case of relevant electricity generated using pre-2013 capacity by a relevant qualifying CHP station unless a declaration has been made in accordance with paragraph (7) in respect of the pre-2013 capacity of the station.

A declaration made in accordance with paragraph (7) cannot be withdrawn.

In this article, “relevant scheme” means a scheme established by the Secretary of State in exercise of the power in section 100(1)(a) of the Energy Act 2008 M36.

This article is subject to article 41.

Subject to paragraph (4), the amount of electricity to be stated in each ROC issued in respect of electricity to which this article applies is 1 megawatt hour.

Paragraphs (a), (b) and (d) of paragraph 1(2) of Part 1 of Schedule 5 apply for the purposes of this article as they apply for the purposes of that Schedule.

This article is subject to article 41.

Subject to paragraphs (3) to (5), the amount of electricity to be stated in each ROC issued in respect of electricity to which this article applies is 1 megawatt hour.

Where the electricity to which this article applies is generated from landfill gas or from sewage gas using relevant additional capacity, the amount of electricity to be stated in each ROC which is to be issued in respect of that electricity is 1 megawatt hour.

This article is subject to article 41.

Subject to paragraph (5), the amount of electricity to be stated in each ROC issued in respect of electricity to which this article applies is 1 megawatt hour.

In relation to the remainder of the electricity to which this article applies, the amount of electricity to be stated in each ROC is to be determined in accordance with article 33(3).

This article is subject to article 41.

This article applies to electricity which is generated using an offshore wind turbine which, in the Authority's view, first formed part of the generating station from a date no earlier than 12th July 2006 and no later than 31st March 2010 (“a 2006/10 wind turbine”).

The amount of electricity to be stated in each ROC issued in respect of electricity to which this article applies is

In any month in which the electricity to which this article applies is not measured separately from any other electricity generated by the generating station, the percentage of the electricity generated by the station during that month which is to be treated (for the purposes of paragraph (2)) as having been generated using a 2006/10 wind turbine, is the appropriate percentage.

For the purposes of paragraph (3), the appropriate percentage is the total installed capacity of the 2006/10 turbines forming part of the generating station as at the date of generation of the electricity expressed as a percentage of the total installed capacity of the station at that date.

This article is subject to article 41.

Where the total installed capacity of the 2012/17 marine capacity of the generating station does not exceed 30 megawatts as at the date of the generation of the electricity, the amount of electricity to be stated in each ROC issued in respect of electricity to which this article applies is

In any month where 2012/17 marine capacity forms part, but not the whole, of the total installed capacity of a generating station, the proportion of the station's RO eligible renewable output which, for the purposes of paragraphs (2) and (3), is generated using 2012/17 marine capacity is

In this article—

• “2012/17 marine capacity”, in relation to a generating station, means any capacity which—

  1. a

     generates electricity from the capture of the energy created from—

     1. i

        the motion of naturally occurring tidal currents in water, or

     2. ii

        the motion of naturally occurring waves on water,

  2. b

     in the Authority's view, first formed part of the station from a date no earlier than 1st April 2012 and no later than 31st March 2017,

  3. c

     has, on or before 31st March 2017, generated electricity in respect of which ROCs may be issued, and

  4. d

     in the case of a station accredited on or before 31st March 2012, does not form part of the capacity of the station as accredited; and

• “the relevant proportion”, in relation to electricity generated using the 2012/17 marine capacity of a generating station, is the proportion which 30 megawatts bears to the total installed capacity of the 2012/17 marine capacity as at the date of generation of the electricity.

This article is subject to article 41.

In determining how electricity has been generated for the purposes of paragraph (1)(b)(ii), no account is to be taken of any waste which the generating station uses for permitted ancillary purposes.

For the purposes of section 32D(7) and (8) of the Act, the Secretary of State may commence a review of the banding provisions in October 2018 and at subsequent four yearly intervals.

In this article—

• “banding provision” means a provision of articles 33 to 40, and

• “network operators” are persons authorised by a licence under section 6(1)(b) or (c) of the Act M38 to participate in the transmission of electricity or to distribute electricity.

Paragraphs (1) and (2) do not apply in relation to the issue of ROCs in respect of the generation of electricity using a registered offshore wind turbine.

ROCs are not to be issued in respect of any electricity generated using a registered offshore wind turbine, on or after the 20th anniversary of the date on which that wind turbine was registered under article 91 or 31st March 2037 (whichever is the earlier).

In this article—

• “additional capacity” means generating capacity which—

  1. a

     forms part of an accredited generating station, and

  2. b

     does not form part of the original capacity of that generating station;

• “mid-2008 additional capacity” means additional capacity which formed part of a generating station on or before 25th June 2008; and

• “registered offshore wind turbine” means a wind turbine which is registered under article 91.

This article applies to a generating station where excluded capacity forms all or part of the total installed capacity of the station.

ROCs are not to be issued in respect of any electricity generated using excluded capacity.

ROCs are not to be issued in respect of any electricity generated by a generating station located in Scotland.

ROCs are not to be issued in respect of any electricity generated by a generating station mentioned in Article 54(1) of the Energy (Northern Ireland) Order 2003 where the electricity has been supplied to customers in Northern Ireland.

In this article—

• “Northern Ireland” has the same meaning as in Article 54(1) of the Energy (Northern Ireland) Order 2003;

• “Scotland” includes—

  1. a

     so much of the internal waters and territorial sea of the United Kingdom as are adjacent to Scotland,

  2. b

     a Renewable Energy Zone, or any part of such a Zone, which is designated by order under section 84(5) of the Energy Act 2004 M40.

This article applies to a combustion unit which is included in a generating CMU in respect of which a capacity agreement has been issued (the “relevant capacity agreement”).

For the purposes of paragraph (4), a capacity market transfer notice comes into force on the capacity market participation date stated in the notice unless the relevant capacity agreement has been terminated before the earliest of the capacity market participation date and 1st April 2017 (in which case the capacity market transfer notice never comes into force).

For the purposes of paragraphs (4) and (5), no account is to be taken of any fossil fuel or waste which is used in the combustion unit for permitted ancillary purposes.

Once a capacity market transfer notice has been received by the Authority it cannot be withdrawn.

In this article, “capacity agreement”, “generating CMU” and “delivery year” have the same meaning as in the Electricity Capacity Regulations 2014 M41.

ROCs are not to be issued in respect of any electricity generated by a combustion unit to which this article applies unless a CFD transfer notice has been given to the Authority by the operator of the generating station in respect of the combustion unit.

Once a CFD transfer notice has been received by the Authority it cannot be withdrawn F54....

Subject to paragraph (6), the operator of a generating station may change the conversion date stated in a CFD transfer notice in respect of a combustion unit at the generating station by giving notice to the Authority in writing.

For the purpose of paragraph (7)(b)(ii), no account is to be taken of any fossil fuel or waste which is used in the combustion unit for permitted ancillary purposes.

Paragraph (2) does not prevent the issue of ROCs in respect of electricity generated by a generating station if financial incentives are not available under a feed-in tariff scheme for that electricity by virtue of the size of the station's total installed capacity.

In this article—

Paragraph (2) does not apply in relation to electricity generated by a generating station in a month in which all of the electricity generated by that station is sold pursuant to another NFFO arrangement.

This article applies where a NFFO arrangement (“the applicable NFFO arrangement”) provides for the building of a generating station (“the specified station”) at a specified location (“the location”) and the specified station has not been commissioned.

Paragraph (2) does not apply in relation to electricity generated by a generating station in a month in which all of the electricity generated by that station is sold pursuant to another NFFO arrangement.

ROCs are not to be issued in respect of any electricity generated by a large hydro generating station if the station was first commissioned on or before 1st April 2002.

In this article, “large hydro generating station” means a hydro generating station which has, or has had at any time since 1st April 2002, a declared net capacity of more than 20 megawatts.

In determining how electricity has been generated for the purposes of paragraph (2), no account is to be taken of any fossil fuel or waste which the generating station uses for permitted ancillary purposes.

In determining how electricity has been generated for the purposes of this article, no account is to be taken of any fossil fuel or waste which the generating station uses for permitted ancillary purposes.

ROCs are not to be issued in respect of any electricity generated by a generating station from bioliquid unless the bioliquid meets the greenhouse gas criteria and the land criteria.

It is for the operator of the generating station to demonstrate to the Authority's satisfaction that the bioliquid meets the greenhouse gas criteria and the land criteria.

Where paragraph (4) applies to a consignment of bioliquid, a mass balance system must be used for the purpose of demonstrating that the bioliquid meets the greenhouse gas criteria and the land criteria.

This article applies to biomass (other than animal excreta, bioliquid, landfill gas, sewage gas or waste).

Subject to paragraph (2), where by virtue of this Part ROCs are not to be issued in respect of part of the electricity generated by a generating station and that electricity is not measured separately from the remainder of the electricity generated by the station, the operator of the station must provide the Authority with an estimate of the amount of electricity generated by the station in respect of which ROCs are not to be issued.

In this Part—

• “buy-out fund” means the fund held by the Authority on the 1st September in the settlement period, being the aggregate of—

  1. a

     amounts received by the Authority under article 67 relating to the renewables obligation for the relevant period,

  2. b

     amounts held by the Authority by virtue of articles 70(4)(b), 71(4), 76(5) and 77(6)(b), and

  3. c

     any interest earned on those amounts;

• “compliant UK supplier” means a UK supplier which, at the end of the late payment period, has discharged or is treated as if it had discharged in full every UK renewables obligation imposed on it in respect of the relevant period;

• “GBRO costs” means the costs which have been or are expected to be incurred by the Authority in connection with the performance of any of its functions conferred by or under sections 32 to 32M of the Act during the settlement period;

• “instalment payment” is to be construed in accordance with article 74(5);

• “late payment fund” is the fund held by the Authority on the 1st November of the settlement period, being the aggregate of—

  1. a

     amounts received by the Authority during that period under article 68 relating to the renewables obligation for the relevant period, and

  2. b

     any interest earned on those amounts;

• “late payment period” means the period beginning with the 1st September and ending with the 31st October in the settlement period;

• “mutualisation fund” means the aggregate at any given time of the amounts (excluding any amounts repaid under article 76(2)) received by the Authority under articles 74 and 76 (together with any interest earned on those amounts) in relation to the relevant period;

• “mutualisation period” means the obligation period immediately following the settlement period;

• “NIRO costs” means the costs which have been or are expected to be incurred by the Northern Ireland authority in connection with the performance of any of its functions conferred by or under Articles 52 to 55F of the Energy (Northern Ireland) Order 2003 during a period which, in any order made under those Articles, corresponds to the settlement period;

• “non-compliant UK supplier” means a UK supplier which, at the end of the late payment period, has not discharged or is not treated as if it had discharged in full every UK renewables obligation imposed on it in respect of the relevant period;

• “recalculated supplier payment” is to be construed in accordance with article 75(5);

• “the relevant period” is to be construed in accordance with article 67(1);

• “relevant shortfall” is to be construed in accordance with article 72(3);

• “relevant supplier” means an electricity supplier which was a designated electricity supplier in the relevant period and which at the end of the late payment period had discharged or is treated as if it had discharged the whole or part of its renewables obligation for the relevant period;

• “retail prices index” means—

  1. a

     the general index of retail prices (for all items) published by the Office of National Statistics, or

  2. b

     where the index is not published for a month, any substituted index or figures published by the Office of National Statistics;

• “settlement period” is to be construed in accordance with article 67(1);

• “shortfall” is to be construed in accordance with article 72(2);

• “supplier payment” is to be construed in accordance with article 74(3);

• “total mutualisation sum” is to be construed in accordance with article 73;

• “total UK buy-out fund” means the fund existing on the 1st September of the settlement period, being the aggregate of—

  1. a

     the buy-out fund held on that date,

  2. b

     any fund provided for in a renewables obligation order made by the Scottish Ministers which corresponds to the buy-out fund held on that date, and

  3. c

     any fund provided for in an order made under Articles 52 to 55F of the Energy (Northern Ireland) Order 2003 which corresponds to the buy-out fund held on that date;

• “UK renewables obligation” means—

  1. a

     the renewables obligation imposed by article 7 of this Order,

  2. b

     a renewables obligation imposed by a renewables obligation order made by the Scottish Ministers, or

  3. c

     a renewables obligation imposed on Northern Ireland suppliers in an order made under Articles 52 to 55F of the Energy (Northern Ireland) Order 2003;

• “UK supplier” means—

  1. a

     a designated electricity supplier,

  2. b

     any electricity supplier on which a UK renewables obligation is imposed under a renewables obligation order made by the Scottish Ministers, and

  3. c

     any designated electricity supplier within the meaning of Article 52(2) of the Energy (Northern Ireland) Order 2003.

Any sum payable by suppliers under articles 67(1), 68(6), 74 or 76(1) is to be rounded to the nearest penny, with any half of a penny being rounded upwards.

A designated electricity supplier may (in whole or in part) discharge its renewables obligation for an obligation period (“the relevant period”) by making a payment to the Authority before the 1st September in the following obligation period (“the settlement period”).

Where a designated electricity supplier makes a payment to the Authority which is less than the amount calculated under paragraph (2), its renewables obligation for the relevant period will be discharged by that payment to the extent of the appropriate number of UK ROCs, which is the quotient obtained by dividing the payment made by the sum which corresponds to a UK ROC by virtue of paragraph (4).

Where a designated electricity supplier fails (in whole or in part) to discharge its renewables obligation for the relevant period before the 1st September in the settlement period, the Authority must notify it of the extent of its default as soon as is reasonably practicable on or after that date.

The extent of the designated electricity supplier's default is an amount equal to the amount calculated under article 67(2) less any amount that the designated electricity supplier has paid to the Authority under article 67.

Interest is payable on that amount (or, where all or part of it is paid to the Authority before the end of the late payment period, such part of that amount as remains unpaid) during the late payment period.

That interest is to be calculated on a daily basis at 5 percentage points above the base rate charged by the Bank of England on the first day of the late payment period.

Any payment made by a designated electricity supplier towards discharging its default under paragraph (2) will be applied first to any interest that is payable under paragraph (3).

If, by the end of the late payment period, the designated electricity supplier has paid to the Authority under this article the amount referred to in paragraph (2) and all interest required to be paid on that amount under paragraph (3), it will be treated as having discharged its renewables obligation for the relevant period.

If, by the end of the late payment period, the designated electricity supplier has not paid to the Authority the amount referred to in paragraph (2) and all interest required to be paid on that amount under paragraph (3), the supplier will not have discharged its renewables obligation for the relevant period.

The Authority must not, during the late payment period, impose a penalty under section 27A(1) of the Act M43 on any supplier in respect of that supplier's failure to discharge its renewables obligation in full before the 1st September in the settlement period.

In paragraph (4) “base rate” means the rate announced from time to time by the Monetary Policy Committee of the Bank of England as the official dealing rate.

Where the aggregate of the amounts to be paid by the Authority under paragraph (1) would exceed the buy-out fund, before the 1st November of the settlement period the Authority must pay the buy-out fund into the Consolidated Fund and to the Northern Ireland authority in the same ratio as the GBRO costs bear to the NIRO costs.

Where any amount to be paid under paragraph (1) or (2) is not a whole number when expressed in terms of pounds sterling, it is to be rounded down to the nearest pound sterling.

Where the buy-out fund exceeds the aggregate of the amounts to be paid by the Authority under paragraph (1), the Authority must pay the balance of the buy-out fund to UK suppliers under and in accordance with article 71 by the 1st November in the settlement period.

Where the aggregate of the amounts to be paid by the Authority under paragraph (1) would exceed the late payment fund, before the 1st January of the settlement period the Authority must pay the late payment fund into the Consolidated Fund and to the Northern Ireland authority in the same ratio as the GBRO costs bear to the NIRO costs.

Where any amount to be paid under paragraph (1) or (2) is not a whole number when expressed in terms of pounds sterling, it is to be rounded down to the nearest pound sterling.

Each UK supplier must be paid a proportion of the amount (if any) that the Authority is required to pay to UK suppliers by virtue of article 69(4) or 70(4)(a) by the dates in the settlement period specified in those articles.

Where any amount to be paid under this article is not a whole number when expressed in terms of pounds sterling, it is to be rounded down to the nearest pound sterling.

Where by virtue of the operation of paragraph (3) the Authority continues to hold any sum which otherwise would have been paid out under this article that sum is to be retained by the Authority and is to constitute part of the buy-out fund held in the obligation period immediately following the settlement period.

A shortfall in relation to a relevant period is a relevant shortfall if it is equal to, or in excess of, the mutualisation threshold for that period.

Subject to paragraphs (2) to (4), where a relevant shortfall has occurred in relation to the relevant period, the total mutualisation sum for that period is the amount of that shortfall.

If the total mutualisation sum for the relevant period has to be recalculated by virtue of article 75(5), for the purposes of that recalculation (whether under paragraph (1) or (2)) the amount of the shortfall is to be reduced by the sum of all payments mentioned in article 75(1)(b) received by UK suppliers.

For the purposes of calculating or recalculating the total mutualisation sum for the relevant period, the amount (if any) by which the shortfall in relation to that period exceeds the mutualisation cap for that period is to be disregarded.