Part 5Discharge of an obligation
Payments
21.—(1) As soon as reasonably practicable after the end of an obligation period, the Administrator must notify each obligated supplier of the following—
(a)the specified amount of relevant sustainable aviation fuel which the Administrator calculates should, in accordance with section 124(2)(b) of the 2004 Act and article 3(3), have been supplied at or for delivery to places in the United Kingdom during that obligation period, and
(b)the number of each type of SAF certificate being held to the credit of the supplier’s SAF account, and the number of each type of SAF certificate which may be used as evidence for the purposes of meeting the supplier’s SAF obligation for that obligation period.
(2) For the purposes of paragraph (1)(b), the maximum number of SAF certificates for relevant sustainable aviation fuel derived from segregated oils and fats that may be used to meet (or towards meeting) the supplier’s SAF obligation may not exceed the number of such certificates which corresponds with the amount calculated under article 22.
(3) A certificate may be produced as evidence by the supplier under this Order—
(a)by means of an electronic submission transmitted to a website of the Administrator, which identifies the credit of a certificate in the supplier’s SAF account, or
(b)by other means, in a case where the Administrator determines that it is appropriate to allow production of a SAF certificate by those means.
(4) A supplier must notify the Administrator of the number and type of SAF certificates held in the supplier’s SAF account which are to be counted towards the discharge of the supplier’s SAF obligation for an obligation period, and which are to be debited by the Administrator from the SAF account.
(5) That notification must be given to the Administrator by the specified date referred to in article 3(3).
(6) Any SAF certificate for power-to-liquid aviation fuel supplied by a supplier during an obligation period, which is not required to meet the supplier’s power-to-liquid aviation fuel obligation for that period, may count towards the discharge of the supplier’s main obligation for that period.
(7) Where a supplier fails to notify the Administrator of the number of SAF certificates to be counted towards the discharge of its SAF obligation by the date mentioned in paragraph (5), the Administrator must take the number to be nil.
(8) A supplier that does not wholly discharge its SAF obligation for an obligation period by the production of evidence in accordance with paragraph (3) by the specified date referred to in article 3(3) must pay to the Administrator a sum (the “buy-out amount”) determined in accordance with paragraph (9).
(9) The “buy-out amount” is determined as follows.
Step 1
Calculate in megajoules—
(a)the PtL amount; and
(b)the SAF amount.
Step 2
Calculate in megajoules—
(a)the PtL obligation shortfall; and
(b)the main obligation shortfall.
Step 3
Multiply the PtL obligation shortfall by £0.145 (“sum A”).
Step 4
Multiply the main obligation shortfall by £0.137 (“sum B”).
Step 5
Add sum A and sum B to obtain the buy-out amount.
(10) In paragraph (9)—
“PtL amount” means the amount of power-to-liquid aviation fuel for which the supplier has produced SAF certificates as evidence towards meeting the supplier’s power-to-liquid aviation fuel obligation during the obligation period;
“PtL obligation shortfall” means the amount by which the PtL amount falls short of the amount needed to meet the supplier’s power-to-liquid aviation fuel obligation;
“SAF amount” means the amount of sustainable aviation fuel of any type for which the supplier has produced SAF certificates as evidence towards meeting the supplier’s main obligation during the obligation period; and
“main obligation shortfall” means the amount by which the SAF amount falls short of the amount needed to meet the supplier’s main obligation.
(11) For the purposes of section 128(1) of the 2004 Act and this Order, the period within which the buy-out amount, calculated under paragraph (9), must be paid to the Administrator (the “buy-out payment period”) is the period beginning on 1st January of the year immediately following the obligation period for which the buy-out amount is calculated and ending on the 26th October of that year.
(12) Where a supplier fails to pay the full buy-out amount to the Administrator before the end of the buy-out payment period—
(a)any unpaid part of the buy-out amount is to increase at the rate specified in paragraph (13), and the increase is to be calculated in accordance with paragraph (14); and
(b)the increased buy-out amount is a debt due from the supplier to the Administrator until it has been paid in full.
(13) The rate referred to in paragraph (12)(a) is 5 percentage points above the base rate of the Bank of England on the day immediately after the last day of the buy-out payment period in question.
(14) The increase is calculated on a daily basis beginning on the day immediately after the last day of the buy-out payment period in question, and ending on the date on which payment is received by the Administrator.
Segregated oils and fats
22. The maximum number of SAF certificates relating to sustainable aviation fuel derived from segregated oils and fats that may be used to meet an obligated supplier’s main obligation in the obligation period listed in column 1 of the following table is the number of SAF certificates issued for amounts of such fuel equal to the percentage, listed in the corresponding entry in column 2, of the main obligation for that obligated supplier during that obligation period—
| Obligation period | Number of SAF certificates issued for amounts of sustainable aviation fuel that may be derived from segregated oils and fats as a percentage of the main obligation |
|---|---|
| 1st January 2025 to 31st December 2025 | 100.00% |
| 1st January 2026 to 31st December 2026 | 100.00% |
| 1st January 2027 to 31st December 2027 | 92.31% |
| 1st January 2028 to 31st December 2028 | 87.88% |
| 1st January 2029 to 31st December 2029 | 80.49% |
| 1st January 2030 to 31st December 2030 | 74.74% |
| 1st January 2031 to 31st December 2031 | 73.17% |
| 1st January 2032 to 31st December 2032 | 69.09% |
| 1st January 2033 to 31st December 2033 | 65.53% |
| 1st January 2034 to 31st December 2034 | 61.60% |
| 1st January 2035 to 31st December 2035 | 57.78% |
| 1st January 2036 to 31st December 2036 | 53.79% |
| 1st January 2037 to 31st December 2037 | 50.32% |
| 1st January 2038 to 31st December 2038 | 47.27% |
| 1st January 2039 to 31st December 2039 | 44.57% |
| 1st January 2040 to 31st December 2040 and subsequent obligation periods | 42.16% |
Use of SAF certificates in later obligations periods
23.—(1) Any SAF certificate may count towards the discharge of no more than 25% of a supplier’s main obligation in the next obligation period.
(2) A SAF certificate for power-to-liquid aviation fuel may count towards the discharge of no more than 25% of a supplier’s power-to-liquid aviation fuel obligation in the next obligation period.
(3) A SAF certificate for sustainable aviation fuel derived from segregated oils and fats may count towards the discharge of no more than 25% of the maximum amount of sustainable aviation fuel derived from segregated oils and fats that may count towards the discharge of the supplier’s main obligation, determined in accordance with article 22, in the next obligation period.
(4) If, as a result of this article, a SAF certificate may count towards the discharge of any part of a supplier’s SAF obligation in the next obligation period, the production of the certificate by the supplier to the Administrator counts as evidence that the amount of sustainable aviation fuel stated in the certificate was supplied by the supplier at, or for delivery to, places in the United Kingdom during that period.
(5) In this article “next obligation period”, in relation to a SAF certificate, means the obligation period immediately following the obligation period for which the SAF certificate was issued.