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STATUTORY RULES OF NORTHERN IRELAND


2005 No. 38

ELECTRICITY

Renewables Obligation Order (Northern Ireland) 2005

  Made 11th February 2005 
  To be laid before Parliament under paragraph 7(3) of the Schedule to the Northern Ireland Act 2000
  Coming into operation 1st April 2005 

The Department of Enterprise, Trade and Investment, in exercise of the powers conferred on it by Articles 52 to 55 and 66(3) of the Energy (Northern Ireland) Order 2003[1] and of every other power enabling it in that behalf, and having consulted the Northern Ireland Authority for Energy Regulation, the General Consumer Council for Northern Ireland, electricity suppliers to whom this Order applies, persons generating electricity from renewable sources in Northern Ireland and such other persons as it considers appropriate, hereby makes the following Order:

Citation and commencement
     1. This Order may be cited as the Renewables Obligation Order (Northern Ireland) 2005 and shall come into operation on 1st April 2005.

Interpretation
    
2.  - (1) In this Order -

    (2) For the purposes of the definition of "hydro generating station", the "civil works" which are to be regarded as supplying a particular turbine ("the relevant turbine") are all the man-made weirs, man-made structures and man-made works for holding water which are located on the inlet side of the relevant turbine, but excluding any such weirs, structures or works which supply another turbine before water is supplied to the weirs, structures and works which supply the relevant turbine.

    (3) Any reference in this Order to provision of information "in writing" shall include 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.

    (4) Any reference in this Order to the supply of electricity shall, in respect of a supply made in Northern Ireland, be construed in accordance with the definition of "supply" in Article 3 of the Electricity (Northern Ireland) Order 1992[8], and in respect of any other supply, be construed in accordance with the definition of "supply" in section 4(4) of the Electricity Act[9].

The renewables obligation
     3.  - (1) The renewables obligation is that, subject to Articles 8, 9 and 10, each designated electricity supplier shall before each specified day produce to the Authority evidence showing -

    (2) The evidence referred to in paragraph (1) is NIROCs provided that such NIROCs relate to electricity generated from eligible renewable sources.

    (3) A NIROC referred to in paragraph (2) shall be regarded as produced to the Authority as the evidence or part of the evidence required under paragraph (1) in respect of an obligation period where before the specified day relating to that period the Authority receives from the designated electricity supplier which holds the NIROC a notification in writing identifying the NIROC to be produced for that purpose and giving the NIROC identifier (as defined in paragraph 2 of Schedule 3).

    (4) Without prejudice to paragraph (3), the Authority may draw up procedural guidelines for the production of NIROCs as the evidence or part of the evidence required under paragraph (1).

    (5) An electricity supplier has a renewables obligation in respect of an obligation period if he supplies electricity in Northern Ireland at any time during that period regardless of whether he supplies electricity in Northern Ireland for the whole of that period.

NIROCs
    
4.  - (1) The Authority shall establish and maintain a register of NIROCs ("the Register") which shall be conclusive as to whether or not a NIROC subsists and as to the person who is for the time being its registered holder.

    (2) Schedule 3 shall have effect with respect to the Register.

    (3) A NIROC comprises a Register entry of its particulars and shall be regarded as being issued at the point when those particulars are entered in the Register by the Authority.

    (4) In accordance with the provisions of Schedule 3, the Authority shall ensure that the Register contains, by way of entries made in it -

    (5) Only the registered holder of a NIROC may use it as the evidence or as part of the evidence required from him under Article 3(1) and a NIROC may not be used by its registered holder or by any other person as the evidence or as part of the evidence required under Article 3(1) from any person other than the registered holder.

    (6) The Authority shall not issue a NIROC in respect of any electricity generated by a particular generating station in a particular month if the Great Britain authority has previously issued a certificate under section 32B of the Electricity Act in respect of any such electricity and whether or not any such certificate previously issued has been revoked.

    (7) Except as provided in paragraph (8), NIROCs (other than replacement NIROCs) shall be issued by the Authority to the operator of a generating station by which the relevant electricity was generated in a particular month where the Authority is satisfied that each of the relevant criteria in paragraph (10) is met.

    (8) Where electricity is required to be generated by a generating station from eligible renewable sources under a qualifying arrangement or in compliance with such an arrangement to be made available to the Company ("the relevant output"), NIROCs (other than replacement NIROCs) appropriate to the amount of the relevant output generated in a particular month shall be issued by the Authority where it is satisfied that each of the relevant criteria in paragraph (10) is met to the licensed suppliers notified to the Authority by the Company as being purchasers of the entitlement to receive NIROCs in arrangements made by the Company pursuant to Article 6 and to each in such quantities as are appropriate to the entitlement which the Company notifies the Authority each has purchased (subject to the total amount of NIROCs available to be so issued).

    (9) The Authority shall when issuing NIROCs (other than replacement NIROCs which shall be issued in accordance with Article 5(3)(b) and (4)) -

    (10) The criteria referred to in paragraphs (7) and (8) and in Article 5(3) are -

    (11) Where a NIROC, if issued, will be issued to a licensed supplier pursuant to paragraph (8), the references in paragraph (10)(c) to the operator of the generating station shall be treated as references to the Company; but paragraph (10)(c)(iii) shall not apply.

    (12) The Authority may refuse to issue a NIROC in any case where the Authority -

    (13) Where it issues NIROCs pursuant to this Article the Authority shall -

    (14) The Authority shall issue NIROCs pursuant to this Article in relation to a generating station in respect of each month of each obligation period in which electricity has been generated by the generating station from eligible renewable sources (whether or not for the whole of that month) and NIROCs in respect of a particular month ("the relevant month") shall be issued no earlier than the end of the second month following the end of the relevant month.

    (15)

Revocation of NIROCs
    
5.  - (1) The Authority -

    (2) Where the Authority revokes NIROCs in accordance with paragraph (1)(b) or (c), it shall revoke the appropriate number of NIROCs from those issued in respect of the generating station in respect of a particular month in descending numerical order of NIROC sequence number, deleting those NIROCs previously allocated the highest NIROC sequence numbers and remaining on the Register from the Register in advance of those with lower NIROC sequence numbers and in determining the number of NIROCs which it is appropriate to revoke it shall proceed on the basis that one NIROC represents one megawatt hour of electricity (with any exact half megawatt hour being rounded upwards).

    (3) Where the Authority has revoked a NIROC -

    (4) Where pursuant to paragraph (3)(b) the Authority issues a replacement NIROC it shall -

NIROCs: financial bids
    
6.  - (1) In the case only of a NIROC relating to electricity that has been acquired, or is required to be acquired, under a qualifying arrangement, the Company shall make and implement arrangements within such a period as the Authority may direct -

    (2) The Company must conduct itself at all times in relation to the arrangements referred to in paragraph (1) in a manner so as to ensure and satisfy the Authority that it does not show any undue preference or exercise any undue discrimination in relation to any licensed supplier or class of licensed supplier.

    (3) On each occasion that a licensed supplier is determined as being a person to whom one or more NIROCs should be issued pursuant to paragraph (1) the Company must promptly notify the Authority as to the licensed supplier so determined and in respect of each such notification, the Company shall either with the notificastion or as soon as reasonably practicable after the notification, notify the Authority of the number of NIROCs to be issued to that licensed supplier.

    (4) The Authority may give directions to the Company with regard to the making and implementing of arrangements by the Company under this Article and such directions may specify a date or dates by which the Company shall make and implement such arrangements and the Company shall comply with such directions.

The amount of the renewables obligation
    
7.  - (1) The amount of electricity referred to in Article 3(1)(a), in respect of an obligation period, is such amount of electricity as equals the relevant percentage of all the electricity supplied by the designated electricity supplier to customers in Northern Ireland during the obligation period (as determined pursuant to paragraph (3)), such amount being rounded to the nearest whole megawatt hour (with any exact half megawatt hour being rounded upwards).

    (2) In paragraph (1) "the relevant percentage" means, in respect of an obligation period, the percentage set out in the second column of Schedule 2 against the reference to that obligation period in the first column of Schedule 2.

    (3) For the purposes of paragraph (1) the amount of electricity supplied by the designated electricity supplier to customers in Northern Ireland during an obligation period is to be determined by taking the aggregate of the estimated figures for his total sales of electricity to customers in Northern Ireland for each of the twelve periods of approximately one month falling wholly or mainly within the obligation period as reflected in the statistics contained in Table 5.5 of "Energy Trends" as that table appears on the Department of Trade and Industry's website on the 1st August immediately following the end of the obligation period.

    (4) Where Table 5.5 of "Energy Trends" is not available in respect of any period the reference in paragraph (3) to Table 5.5 shall be taken to be such table as is published by the Department of Enterprise Trade and Investment or the Department of Trade and Industry in substitution for Table 5.5.

    (5) Each designated electricity supplier shall furnish to the Department of Enterprise, Trade and Investment the estimated figures relating to his total sales of electricity to customers in Northern Ireland during an obligation period for incorporation in the statistics referred to in paragraph (3) by no later than the 20th June immediately following the end of the obligation period and this obligation shall be independent of any obligation to furnish those figures which arises otherwise than under this Order.

    (6) Each designated electricity supplier shall before 7th August in each year inform the Authority of the amount in megawatt hours of his renewables obligation in respect of the last obligation period which ended before the 7th August in question and the amount of all electricity supplied by that designated electricity supplier to customers in Northern Ireland during that obligation period (as determined pursuant to paragraph (3)).

Alternative way of discharging renewables obligation: payments
    
8.  - (1) Instead of producing certificates pursuant to Article 3, a designated electricity supplier may discharge (in whole or in part) his renewables obligation in relation to a particular obligation period by making a payment to the Authority before the specified day relating to that obligation period.

    (2) Subject to paragraphs (3) to (5), the payment to be made under paragraph (1) is thirty two pounds and thirty three pence for each megawatt hour of electricity generated from eligible renewable sources for which the designated electricity supplier does not produce NIROCs pursuant to Article 3 or eligible GBROCs pursuant to Article 9 ("the buy-out price").

    (3) If, in the case of the calendar year 2005 or any subsequent calendar year, the annual retail prices index for that year ("the later year") is higher or lower than that for the previous year, the buy-out price relating to the obligation period beginning on the 1st April immediately following the later year shall be increased (if the index is higher) or decreased (if the index is lower) by the annual percentage inflation rate of the retail prices index for the later year.

    (4) When the buy-out price is calculated under paragraph (3) the result shall be rounded to the nearest penny (with any exact half of a penny being rounded upwards).

    (5) In this Article and in Article 18 "the retail prices index" means -

Alternative way of discharging renewables obligation: GBROCs
    
9.  - (1) Subject to Article 10(1), instead of producing NIROCs pursuant to Article 3, a designated electricity supplier may discharge (in whole or in part) his renewables obligation in relation to a particular obligation period by producing to the Authority in accordance with this Article eligible GBROCs issued in respect of electricity that has been supplied to customers during that obligation period.

    (2) A GBROC referred to in paragraph (1) shall be regarded as produced to the Authority in respect of an obligation period where before the specified day relating to that period the Authority receives from the designated electricity supplier which is treated as holding the GBROC for the purpose of the GBRO order under which it was issued a notification in writing identifying the GBROC to be so produced for that purpose and giving its GBROC identifier.

    (3) Without prejudice to paragraph (2), the Authority may draw up procedural guidelines for the production of GBROCs under this Article.

Further provision in relation to production of NIROCs and GBROCs
    
10.  - (1) A designated electricity supplier may discharge up to 25 per cent of his renewables obligation in respect of an obligation period by producing to the Authority NIROCs and eligible GBROCs relating to electricity supplied in the immediately preceding obligation period.

    (2) In respect of any obligation period which falls -

of a designated electricity supplier's renewables obligation may be satisfied by the production of NIROCs and eligible GBROCs issued in respect of generating stations which, during the month to which a NIROC or an eligible GBROC relates, have been fuelled partly by fossil fuel (as defined in Article 11) and partly by biomass (and by no other fuel).

    (3) A designated electricity supplier shall not produce to the Authority a GBROC or a NIROC which has previously been or simultaneously is produced to the Great Britain authority under a GBRO Order.

Eligible renewable sources
    
11.  - (1) Subject to Article 12, electricity shall be considered to have been generated from eligible renewable sources to the extent that it has been generated from renewable sources and provided that it has not been generated by an excluded generating station as specified in paragraphs (2) to (14).

    (2) The following shall be excluded generating stations -

    (3) In paragraph (2)(b) "Northern Ireland" does not include any part of the territorial sea of the United Kingdom.

    (4)

    (5) A generating station shall be an excluded generating station in any month during which it is fuelled wholly or partly by waste unless -

    (6) A generating station shall be an excluded generating station in any month during which it is fuelled partly by fossil fuel and partly by any other fuel (or fuels) other than biomass.

    (7) A generating station shall not be an excluded generating station by virtue of paragraph (2)(a) in any month during which it is fuelled partly by fossil fuel and partly by biomass (and by no other fuel).

    (8) A generating station shall not be an excluded generating station by virtue of paragraph (2)(a) in any month during which it is fuelled wholly by biomass, if -

    (9)

    (10) After 31st March 2016 a generating station shall be an excluded generating station in any month during which it is fuelled partly by fossil fuel and partly by biomass (and by no other fuel).

    (11) A generating station shall be an excluded generating station in any month during which it is fuelled wholly or partly by peat.

    (12) A generating station shall be an excluded generating station in any month during which it is fuelled wholly or partly by any substance derived directly or indirectly from any of the substances referred to in paragraph (16)(a)(i) unless that substance is a substance falling within paragraph (16)(a)(ii) or it is waste or a component of biomass.

    (13) A generating station shall be an excluded generating station in any month during which it is fuelled wholly or partly by waste where all the waste which is neither biomass nor liquids comprised wholly or mainly of hydrocarbon compounds is or is derived directly or indirectly from one or more of the substances referred to in paragraph (16)(a)(i).

    (14)

    (15) For the purposes of paragraph 2(a), the main components of a generating station shall only be regarded as having being renewed since 31st December 1989 where -

    (16) In this Article -

    (17) In this Article and in Article 10 and in Schedule 1, in determining whether a generating station is fuelled by a particular fuel regard is to be had only to fuel which it uses to generate electricity.

    (18) For the purposes of this Article and Article 10 and Schedule 1, fossil fuel or waste which a generating station uses for

    (19) For the purposes of this Article and Schedule 1, a generating station shall be regarded as being situated at a location provided for by an extant qualifying arrangement whether it is situated wholly or partly at that location.

Calculation of amount of electricity generated from eligible renewable sources
     12.  - (1) Subject to paragraphs (2) and (4), the amount of electricity generated by a generating station which is to be regarded as having been generated from eligible renewable sources in any month is to be calculated by multiplying the renewable output of that generating station in that month by a proportion which is equal to the proportion which the net output of that generating station in that month bears to the gross output of that generating station in that month and for the purposes of this calculation -

    (2) In the case of a generating station fuelled wholly or partly by biomass, 2 per cent of the electricity generated from biomass in any month shall be treated as having been generated from fossil fuel unless the operator of the generating station satisfies the Authority that during that month a lesser percentage of the energy content of the biomass derives from fossil fuel, in which case that lesser percentage shall be treated as having been generated from fossil fuel.

    (3) In calculating "the renewable output" in the case of a generating station fuelled partly by fossil fuel and partly by another fuel or fuels the amount of electricity which has been generated from fossil fuel is to be determined according to the respective energy contents of the fuels used.

    (4) Where the operator of a generating station satisfies the Authority that in any month the input electricity of the generating station does not exceed 0.5 per cent of its gross output, no input electricity shall be deducted from the gross output in calculating the net output of the generating station for that month and, accordingly, the net output shall be equal to the gross output in that month.

    (5) In this Article -

Calculation of amount of electricity supplied to customers
    
13. Where electricity generated from eligible renewable sources has been sold by the operator of the generating station to an electricity supplier and is then purchased from the electricity supplier and consumed by the operator of the generating station, such electricity shall be regarded, for the purposes of this Order, as having been supplied by an electricity supplier to a customer.

Provision of information to the Authority
    
14.  - (1) The Authority may require a designated electricity supplier to provide it with such information in such form and within such time as it may reasonably require which is, in the Authority's opinion, relevant to the question whether the supplier is discharging, or has discharged, his renewables obligation in relation to any obligation period.

    (2) The Authority may request any person who generates, supplies or transmits electricity in relation to which a NIROC has been or may be issued, or any person who buys or sells such electricity or NIROCs (otherwise than as a consumer) to provide the Authority with such information in such form and within such time as it may reasonably request in order to carry out any of its functions under this Order.

    (3) Where a designated electricity supplier receives a payment other than under Article 15 or 17 in relation to a failure by a Great Britain designated supplier to discharge its renewables obligation imposed in accordance with section 32(1) of the Electricity Act the designated electricity supplier receiving the payment shall notify the Authority, immediately after receiving the payment of the amount he received and the reason for the payment.

Allocation of payments made under Article 8
    
15.  - (1) The aggregate of the amounts received by the Authority under Article 8 in respect of an obligation period ("the relevant obligation period")(together with any interest thereon received by the Authority) is referred to as "the buy-out fund".

    (2) The Authority shall pay out the buy-out fund, by the 1st December immediately following the relevant obligation period in accordance with the system of allocation specified in paragraphs (3) to (6).

    (3) The buy-out fund relating to a relevant obligation period shall be divided amongst the United Kingdom suppliers who meet one or more of the applicable conditions referred to in paragraphs (4) and (5) so that each such United Kingdom supplier receives a proportion of the buy-out fund calculated in accordance with paragraph (6).

    (4) The applicable condition for a designated electricity supplier is that, in respect of the relevant obligation period, he has complied (in whole or in part) with his renewables obligation by producing qualifying certificates to the Authority.

    (5) The applicable condition for a Great Britain designated supplier is that, in respect of a period contemporaneous with the relevant obligation period, it has complied (in whole or on part) with any renewables obligation imposed on it in accordance with section 32(1) of the Electricity Act by producing qualifying certificates to the Great Britain authority.

    (6) The proportion of the buy-out fund which each United Kingdom supplier is entitled to receive under paragraph (3) is equal to the proportion which the amount of the electricity covered by all the qualifying certificates it has produced as mentioned in paragraphs (4) or (5) bears to the total amount of the electricity covered by all of the qualifying certificates produced to the Authority or to the Great Britain authority in respect of the relevant obligation period or any period contemporaneous with the relevant obligation period, in discharge of any renewables obligation imposed in accordance with section 32(1) of the Electricity Act or this Order.

Exchange of information with the Great Britain authority
    
16.  - (1) The Authority shall as soon as reasonably practicable after the specified day notify the Great Britain authority of the GBROC identifier of each GBROC produced to it by a designated electricity supplier under Article 9 and the name of the designated electricity supplier which produced that GBROC and as to the total number of GBROCs produced to the Authority under Article 9 in respect of the obligation period to which the specified day relates.

    (2) The Authority shall as soon as reasonably practicable after receiving a notification from the Great Britain authority as to the NIROC identifiers of NIROCs produced to it by Great Britain designated suppliers under GBRO Orders inform the Great Britain authority of -

    (3) The Authority may conduct enquiries or investigations in respect of whether any electricity which is or may be the subject of a GBROC issued under any provision included in a GBRO Order by virtue of section 32B(2A) of the Electricity Act has been supplied to customers in Northern Ireland and if, as a result of any such enquiry or investigation, the Authority is not satisfied that any such electricity has been so supplied it shall notify the Great Britain authority accordingly.

    (4) The Authority shall as soon as reasonably practicable after the specified day notify the Great Britain authority as to the number of NIROCs produced to the Authority under Article 3 by each designated electricity supplier in respect of the obligation period to which the specified day relates.

    (5) The Authority shall as soon as reasonably practicable after the specified day notify the Great Britain authority as to -

    (6) The Authority shall as soon as reasonably practicable after the end of the late payment period notify the Great Britain authority as to -

Late Payments
    
17.  - (1) As soon as reasonably practicable after the specified day in relation to an obligation period (the "obligation period in question"), the Authority shall notify any designated electricity supplier that has not discharged his renewables obligation in full by the specified day ("defaulting supplier") that he has not fully discharged his renewables obligation, and to what extent.

    (2) If a defaulting supplier makes a late payment to the Authority before the end of the late payment period relating to the obligation period in question he shall be treated as having discharged his renewables obligation in full for that obligation period.

    (3) If a defaulting supplier pays part of a late payment to the Authority before the end of the late payment period relating to the obligation period in question he shall be treated as having discharged the same proportion of the amount of his renewables obligation which was not discharged by the specified day as the proportion which the partial payment bears to the total late payment required in order for the supplier to be treated under paragraph (2) as having discharged his renewables obligation in full for the obligation period in question.

    (4) The Authority shall pay out the late payment fund by the 1st February immediately following the late payment period , in accordance with the system of allocation specified in Article 15(3) to 15(6), as if -

    (5) The Authority shall not, during the late payment period, impose a penalty under Article 45 of the Energy Order on any defaulting supplier in respect of that supplier's failure to discharge his renewables obligation in full before the specified day.

    (6) In this Article -

Functions of the Authority
    
18. The Authority shall have the functions assigned to it elsewhere in this Order, including any general or specific role, duty or decision making function in addition to the following specific functions -



Sealed with the Official Seal of the Department of Enterprise, Trade and Investment on


11th February 2005.

L.S.


Jenny Pyper
A senior officer of the Department of Enterprise, Trade and Investment


SCHEDULE 1
Articles 2(1) and 11(17). (18) and (19)


CONDITIONS OF ELIGIBILITY FOR GBROCS


     1. The electricity to which the GBROC relates was generated from renewable sources.

     2. The electricity to which the GBROC relates was not generated by a generating station located outside the United Kingdom unless it is a generating station which is not on land and which is directly and exclusively connected to a transmission and distribution network in Northern Ireland.

     3. The electricity to which the GBROC relates was not generated under a qualifying arrangement.

     4. The electricity to which the GBROC relates was not generated by a generating station that is a large hydro generating station unless it was first commissioned after 1st April 2002.

     5. Subject to paragraphs 6 and 7, the electricity to which the GBROC relates was not generated by a generating station (other than a micro hydro generating station) that was first commissioned before 1st January 1990 where the main components of that generating station have not been renewed since 31st December 1989 as described in paragraph 18.

     6. Paragraph 5 shall not apply in relation to a GBROC issued in respect of electricity generated by a generating station that during the month to which the GBROC relates was fuelled partly by fossil fuel and partly by biomass (and by no other fuel).

     7. Paragraph 5 shall not apply in relation to a GBROC issued in respect of electricity generated by a generating station that during the month to which the GBROC relates was fuelled wholly by biomass, if -

     8. The electricity to which the GBROC relates was not generated by a generating station that in the month to which the GBROC relates was fuelled wholly or partly by waste unless -

     9. The electricity to which the GBROC relates was not generated by a generating station that in the month to which the GBROC relates was fuelled partly by fossil fuel and partly by any other fuel (or fuels) other than biomass.

     10. After 31st March 2009, the electricity to which the GBROC relates was not generated by a generating station that during the month to which the GBROC relates was fuelled partly by fossil fuel and partly by biomass (and by no other fuel) if during that month, less than the specified percentage of the energy content of the biomass derives from energy crops.

     11. In paragraph 10 "the specified percentage" means, in respect of any month from 1st April 2009 until 31st March 2010, 25 per cent; in respect of any month from 1st April 2010 until 31st March 2011, 50 per cent; and in respect of any month from 1st April 2011 until 31st March 2016, 75 per cent.

     12. After 31st March 2016, the electricity to which the GBROC relates was not generated by a generating station that during the month to which the GBROC relates was fuelled partly by fossil fuel and partly by biomass (and by no other fuel).

     13. The electricity to which the GBROC relates was not generated by a generating station that during the month to which the GBROC relates was fuelled wholly or partly by peat.

     14. The electricity to which the GBROC relates was not generated by a generating station that during the month to which the GBROC relates was fuelled wholly or partly by any substance derived directly or indirectly from any of the substances referred to in Article 11(16)(a)(i) unless that substance is a substance falling within Article 11(16)(a)(ii) or it is waste or a component of biomass.

     15. The electricity to which the GBROC relates was not generated by a generating station that during the month to which the GBROC relates was fuelled wholly or partly by waste where all the waste which is neither biomass nor liquids comprised wholly or mainly of hydrocarbon compounds is or is derived directly or indirectly from one or more of the substances referred to in Article 11(16)(a)(i).

     16.

     17.

     18. The main components of a generating station shall only be regarded as having been renewed since 31st December 1989 where -

     19. The following terms shall have the meanings given below where they appear in this Schedule:

     20. In paragraphs 16 and 17 "qualifying arrangement" has the meaning that it has in the GBRO Order under which the GBROC was issued.

     21.



SCHEDULE 2
Articles 2(1) and 7(2)


AMOUNT OF THE RENEWABLES OBLIGATION


Obligation period Percentage of total supplies
1st April 2005 to 31st March 2006 2.5
1st April 2006 to 31st March 2007 2.6
1st April 2007 to 31st March 2008 2.8
1st April 2008 to 31st March 2009 3.0
1st April 2009 to 31st March 2010 3.5
1st April 2010 to 31st March 2011 4.0
1st April 2011 to 31st March 2012 5.0
1st April 2012 to 31st March 2013 6.3
Each subsequent period of twelve months ending with the period of twelve months ending on 31st March 2027 6.3



SCHEDULE 3
Articles 2(1), 3(3), 4(2), and (4) and 18(f)


THE REGISTER


     1. The Authority shall maintain the Register (which may be in electronic form).

     2. Particulars of a NIROC comprise -

     3. A person may only be the registered holder of a NIROC or have an entry made and maintained in respect of him under Article 4(4)(b) if he provides to the Authority in writing -

     4. The Authority may from time to time draw up procedural guidelines for itself and others to assist it in maintaining the Register and carrying out its functions in respect thereof.

     5. The Authority shall delete from the Register any NIROC which -

and where it is so deleted, the NIROC cannot thereafter be produced as the evidence or part of the evidence required under Article 3(1).

     6. Where the registered holder of a NIROC and a person whom he wishes to be the substitute (as defined in this paragraph) require in respect of a particular NIROC that the Register be amended, by substituting for the name of the registered holder the name of a second person ("the substitute"),(who shall be a person whose name is included on the list maintained pursuant to Article 4(4)(b)) -

     7. Where the Authority receives in writing a request for substitution it shall inform both the registered holder of the NIROC and the substitute named therein that the request has been received and, in the event that the requests from the registered holder of the NIROC and the person whom he wishes to be the substitute are not identical in all material respects or do not include the NIROC identifier of the NIROC, shall draw this to their attention.

     8. Where a NIROC is issued in accordance with Article 4 or a replacement NIROC is issued in accordance with Article 5 or a substitute is recorded as the registered holder pursuant to paragraph 6, the Authority shall notify the registered holder (in the case of a NIROC or a replacement NIROC being issued) and the former and new registered holder (in the case of a substitution) in writing within 5 banking days of the issue or substitution having taken place.

     9. The substitute shall not be the registered holder of the NIROC until such time as the particulars of the NIROC recorded in the Register identify him as such.

     10. The Register may be amended by a decision of the Authority -

     11. The contents of the Register (including the entries referred to in Article 4(4)(b)) shall be available for inspection by the public on request at reasonable notice during the Authority's working hours and at the request of any person the Authority shall provide a written statement of any entry on the Register including any entry referred to in Article 4(4)(b).

     12. Where any person considers that an entry maintained in respect of him under Article 4(4)(b) should be amended or deleted, he may apply to the Authority in writing requesting that the entry be amended or deleted.

     13. The Authority shall in any procedural guidelines which it produces provide details of its usual working hours.



EXPLANATORY NOTE

(This note is not part of the Order.)


This Order is made under Article 52 of the Energy (Northern Ireland) Order 2003 and imposes an obligation ("the renewables obligation") on all electricity suppliers, who are licensed under the Electricity (Northern Ireland) Order 1992, to supply to customers in Northern Ireland specified amounts of electricity generated from renewable sources. As alternatives, in respect of all or part of an electricity supplier's renewables obligation, an electricity supplier is permitted to provide evidence that other licensed electricity suppliers have supplied electricity generated using renewable sources instead of it or to make a payment to the Northern Ireland Authority for Energy Regulation ("the Authority"). Renewable sources include sources of energy such as wind, water, solar and biomass.

Article 3 imposes the renewables obligation on electricity suppliers. The renewables obligation requires the electricity supplier to produce evidence of the supply of electricity generated from renewable sources to the Authority. The evidence required is in the form of certificates issued by the Authority (which are referred to in the Order as "NIROCs").

Article 4 and Schedule 2 provide for the issue of NIROCs by the Authority and the maintenance by it of a register of NIROCs.

Article 5 provides for the revocation of NIROCs in specified circumstances.

Article 6 provides for NIROCs issued in respect of electricity generated under Northern Ireland Non-Fossil Fuel Arrangements to be issued by reference to financial bids with the person making the highest bid being the person to whom the NIROCs are to be issued.

Article 7 and Schedule 2 provide for how the amount of an electricity supplier's renewables obligation is to be determined.

Article 8 provides that, instead of producing certificates to the Authority, an electricity supplier may discharge (in whole or part) its renewables obligation by making a payment to the Authority.

Article 9 provides for suppliers to discharge their renewables obligation by tendering eligible GBROCs - ie Renewables Obligation Certificates issued by the Gas and Electricity Markets Authority ("GEMA") under the GB Renewables Obligation Orders. Schedule 1 outlines the conditions governing GBROC eligibility.

Articles 10, 11 and 12 determine what types of electricity generated from renewable sources are eligible to satisfy an electricity supplier's renewables obligation.

Article 14 provides for the Authority to obtain information to enable it to carry out its functions under the Order.

Article 15 provides how payments made to the Authority by electricity suppliers under Article 8 are to be divided amongst those electricity suppliers subject to the renewables obligations in Great Britain and in Northern Ireland.

Article 16 provides for the exchange of information between the Authority and the GEMA relating to GBROCs produced to the Authority under Article 9 and NIROCs produced to GEMA under the GB Renewables Obligation Orders.

Article 17 provides for an electricity supplier to be treated as having discharged its renewables obligation by making a late payment in accordance with that Article. The late payment must be made during a specified period and is subject to a surcharge which rises on a daily basis. If a supplier only makes a partial late payment the remaining part of its renewables obligation not covered by the partial late payment, remains outstanding and the supplier is still in default of its renewables obligations.

Article 18 makes provision relating to the functions of the Authority under the Order.


Notes:

[1] S.I. 2003/419 (N.I. 6); Articles 52 to 55 were amended by S.R. 2004 No. 524 and Article 54A was inserted by S.R. 2004 No. 524; Article 54 was amended by section 120 of the Energy Act 2004 (c. 20)back

[2] 1988 c. 1; section 839 was amended by the Finance Act 1995 (c. 4), section 74 and Schedule 17, paragraph 20(b)back

[3] 1989 c. 29back

[4] S.R. 1994 No. 132back

[5] S.R. 1996 No. 407back

[6] S.I. 1997/278 (N.I. 19)back

[7] 1964 c. 29. Section 1(7) of the Continental Shelf Act 1964 was amended by the Oil and Gas (Enterprise) Act 1982 (c. 23), section 37 and Schedule 3, paragraph 1.back

[8] S.I. 1992/231 (N.I. 1)back

[9] The definition of "supply" in section 4(4) of the Electricity Act was substituted by section 28(1) and (3)(b) of the Utilities Act 2000, c. 27back

[10] 1976 c. 76back



ISBN 0 337 95831 9


 © Crown copyright 2005

Prepared 23 March 2005


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