The Renewables Obligation (Scotland) Order 2005 No. 185

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SCOTTISH STATUTORY INSTRUMENTS

2005 No. 185
ELECTRICITY
The Renewables Obligation (Scotland) Order 2005

	Made	24th March 2005
	Coming into force	1st April 2005

The Scottish Ministers in exercise of the powers conferred by sections 32 to 32C of the Electricity Act 1989[1], and of all other powers enabling them in that behalf and having, in accordance with section 32(7) of that Act, consulted the Gas and Electricity Markets Authority, the Gas and Electricity Consumer Council, electricity suppliers to whom this Order applies, and such generators of electricity from renewable sources and other persons as they consider appropriate, hereby make the following Order a draft of which has, in accordance with section 32(9) of that Act, been laid before and approved by resolution of the Scottish Parliament:

Citation, commencement and extent
     1. - (1) This Order may be cited as the Renewables Obligation (Scotland) Order 2005 and shall come into force on 1st April 2005.

    (2) This Order extends to Scotland only.

Interpretation
     2. - (1) In this Order

"the 2004 Order" means the Renewables Obligation (Scotland) Order 2004[

"the Act" means the Electricity Act 1989;

"advanced conversion technologies" means gasification, pyrolysis or anaerobic digestion, or any combination thereof;

"anaerobic digestion" means the bacterial fermentation of organic material in the absence of free oxygen;

"banking day" means a day on which banks are generally open in the City of London excluding Saturdays or Sundays;

"biomass" means fuel used in a generating station of which at least 98 per cent of the energy content (measured over a period of one month) is derived from plant or animal matter or substances derived directly or indirectly therefrom (whether or not such matter or substances are waste) and includes agricultural, forestry or wood wastes or residues, sewage and energy crops (provided that such plant or animal matter is not or is not derived directly or indirectly from fossil fuel);

"commissioned" means the completion of a process of such procedures and tests as from time to time constitute usual industry standards and practices for commissioning a generating station in order to demonstrate that the generating station is capable of commercial operation;

"declared net capacity" means the highest generation of electricity (calculated by adding together the highest generation of electricity at the main terminals of each alternator and dynamo) which, on the assumption that the source of power is available uninterruptedly, can be maintained indefinitely without causing damage to the plant less so much of that electricity as is consumed by the plant;

"designated electricity supplier" means any electricity supplier supplying electricity in Scotland;

"eligible NIROC" means a NIROC that satisfies the conditions for eligibility set out in Schedule 3;

"eligible renewable sources" has the meaning given to it in article 11;

"energy content" of a fuel means the gross calorific value of that fuel (as expressed by weight or by volume) multiplied by the weight or volume of that fuel;

"energy crops" means a plant crop planted after 31st December 1989 and grown primarily for the purpose of being used as fuel;

"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;

"hydro generating station" means a generating station which is wholly or mainly driven by water (other than a generating station driven by tidal flows, waves, ocean currents or geothermal sources) and the "generating station" extends to all turbines supplied by the same civil works, except that any turbine driven by a compensation flow supplied by those civil works where there is a statutory obligation to maintain such compensation flow in a natural water course shall be regarded as a separate hydro generating station;

"interconnector" means the electric lines, electrical plant and meters operated solely for the transfer of electricity between a transmission and distribution network in Great Britain and a transmission and distribution network in another country or in Northern Ireland;

"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;

"late payment period" in relation to an obligation period, means the period from the specified day in relation to that obligation period to the following 30th November;

"micro hydro generating station" means a hydro generating station which-

"NIRO Order" means any order made pursuant to article 52 of the Northern Ireland Energy Order;

"NIROC" means a certificate issued by the Northern Ireland Authority under article 54 of the Northern Ireland Energy Order and pursuant to a NIRO Order and, save where the context otherwise requires, includes a replacement NIROC;

"NIROC identifier" means an identifier unique to a NIROC determined by the Northern Ireland Authority and containing the following information (or reference to that information in coded format)-

"Northern Ireland Authority" means the Northern Ireland Authority for Energy Regulation;

"Northern Ireland supplier" means an electricity supplier within the meaning of Part 7 of the Northern Ireland Energy Order;

"obligation period" means any of the periods referred to in the first column of Schedule 1;

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

"particulars" in relation to a SROC, has the meaning given to it in paragraph 2 of Schedule 2;

"plant" with reference to crops or plant matter, includes shrubs and trees;

"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 arrangement" means (except in the definition of "micro hydro generating station" and in Schedule 3) 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);

"qualifying certificate" means a certificate issued pursuant to an order made under section 32 of the Act and which relates to electricity produced from eligible renewable sources, or an eligible NIROC;

"Register" has the meaning given to it in article 4(1);

"registered holder" has the meaning given to it in paragraph 2 of Schedule 2 except where the term is used in article 8(3);

"renewables obligation" has the meaning given to it in article 3 except where this term is referred to in articles 15(5), 15(6), 15(7), 18(5), 18(6), 18(11), 18(12), 18(13), 18(21), 18(23)(a) and 18(23)(e);

"replacement NIROC" means a NIROC issued in accordance with the provisions of the NIRO Order to replace another NIROC;

"replacement SROC" means a SROC issued in accordance with articles 5(3)(b) and 5(4);

"SROC" means a certificate issued by the Authority under section 32B of the Act and pursuant to this Order;

"SROC identifier" has the meaning given by paragraph 2 of Schedule 2;

"SROC sequence number" has the meaning given to it in article 4(9);

"specified day", in relation to an obligation period, means the 1st October immediately following it;

"United Kingdom supplier" means a designated electricity supplier, an electricity supplier supplying electricity in England and Wales or a Northern Ireland supplier;

    (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 the 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) Unless the context otherwise requires any reference in this Order to a numbered article or Schedule is a reference to the article in or the Schedule to this Order bearing that number and any reference in an article or a Schedule to a numbered paragraph is a reference to the paragraph of that article or Schedule bearing that number.

    (5) Any reference in this Order to the supply of electricity shall, in respect of a supply made to customers in Northern Ireland, be construed in accordance with the definition of "supply" in article 3 of the Northern Ireland Electricity Order.

The renewables obligation
     3. - (1) The renewables obligation is that, subject to articles 7, 8, 9 and 10 each designated electricity supplier shall before each specified day produce to the Authority evidence showing-

(a) that it has supplied to customers in Great Britain during the obligation period to which the specified day relates such amount of electricity generated from eligible renewable sources as is determined under article 6; or

(b) that another electricity supplier has done so (or that two or more others have done so); or

(c) that, between them, they have done so.

    (2) The evidence referred to in paragraph (1) is certificates issued by the Authority under section 32B(2) of the Act, provided that such certificates relate to electricity generated from eligible renewable sources.

    (3) A certificate 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 certificate a notification in writing identifying the certificate to be produced for that purpose and, in the case of a SROC, the SROC identifier (as defined in paragraph 2 of Schedule 2).

    (4) Without prejudice to paragraph (3), the Authority may draw up procedural guidelines for the production of certificates 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 it supplies electricity in Scotland at any time during that period regardless of whether it supplies electricity in Scotland for the whole of that period.

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

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

    (3) A SROC 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 2, the Authority shall ensure that the Register contains, by way of entries made in it-

(a) an accurate record of the particulars of each SROC as issued by the Authority (amended to reflect any change of registered holder which may occur) and which remains eligible to be produced as evidence pursuant to article 3 or article 9; and

(b) in addition to the record of the particulars of each SROC, a list of the names of all persons who are either the registered holder of a SROC or, although not at that time the registered holder of a SROC, have notified the Authority that they wish an entry to be made and maintained in respect of them as prospective registered holders of SROCs.

(5) Only the registered holder of a SROC may use it as the evidence or as part of the evidence required from the registered holder under article 3(1) and a SROC 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 SROC-

(a) in respect of any electricity generated by a particular generating station in a particular month if it has previously issued a certificate under section 32B of the Act in respect of any such electricity other than under this Order and whether or not any such certificate previously issued has been revoked; or

(b) certifying the matters within section 32B(2A) of the Act, where the Northern Ireland Authority has notified the Authority that it is not satisfied that the electricity in question has been supplied to customers in Northern Ireland.

(7) Except as provided in paragraph (8), SROCs (other than replacement SROCs) 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 nominated person ("the relevant output"), SROCs (other than replacement SROCs) 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-

(a) where the nominated person is entitled to the relevant output under or in compliance with a qualifying arrangement only to electricity suppliers notified to the Authority by the nominated person as being purchasers of the relevant output and to each in such quantities as are appropriate to the amount of the relevant output which the nominated person notifies the Authority each has purchased (subject to the total amount of SROCs available to be so issued); or

(b) where one or more electricity suppliers are entitled to the relevant output under a qualifying arrangement only to those electricity suppliers, each in proportion to its entitlement.

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

(a) allocate a number ("the SROC sequence number") to each SROC issued;

(b) allocate SROC sequence numbers sequentially in ascending numerical order to all the SROCs issued in respect of electricity generated from eligible renewable sources by a particular generating station in a particular month;

(c) in the case of a generating station which in a particular month generates electricity from eligible renewable sources under or in compliance with a qualifying arrangement, issue SROCs in respect of that month firstly to the electricity suppliers to whom paragraph (8)(a) or (8)(b) applies in that month on the basis of information provided to it by the nominated person and thereafter, in the event that the generating station generates any electricity from eligible renewable sources in that month other than under a qualifying arrangement or which in that month is not required in compliance with such an arrangement to be made available to the nominated person, to the operator of that generating station.

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

(a) the Authority has previously confirmed in writing to the operator of the generating station to which the SROC relates that the generating station is accredited as being a generating station capable of generating electricity from eligible renewable sources and the Authority has not since withdrawn that accreditation;

(b) the Authority has been provided in writing with all the information listed in paragraphs 2(b)(i) to (iii) of Schedule 2 together with any other information which it reasonably requires in order to assess whether the SROC should be issued and it is satisfied that such information is accurate and reliable;

(c) the operator of the generating station has provided the Authority with a declaration (which the Authority shall be entitled to accept as sufficient evidence of its contents) applicable to the relevant electricity that-

(d) where the electricity has been generated on land in Northern Ireland and supplied to customers in Great Britain, the operator of the generating station has provided the Authority with evidence of the following matters and the Authority is satisfied with such evidence-

(e) where the electricity was not generated on land in Great Britain or in Northern Ireland and was supplied to customers in Great Britain, the operator of the generating station has provided the Authority with evidence of the matters listed in either paragraph (10)(e)(i) or (ii) and the Authority is satisfied with such evidence-

(f) in the case of a SROC certifying the matters within section 32B(2A) of the Act and which relates to electricity which was generated by a generating station which, at the time the electricity was generated, was not directly and exclusively connected to a transmission or distribution network in Northern Ireland, the operator of the generating station has provided the Authority with evidence of the following matters and the Authority is satisfied with such evidence-

(g) in the case of a SROC certifying the matters within section 32B(2A) of the Act which relates to electricity which was generated by a generating station which, at the time the electricity was generated, was directly and exclusively connected to a transmission or distribution network in Northern Ireland, the operator of the generating station has provided the Authority with evidence of the quantity, date and period of time during the particular month when the electricity from eligible renewable sources was generated by the generating station, and the Authority is satisfied with such evidence;

(h) SROCs in respect of the relevant electricity generated by the generating station in the particular month have not already been issued; and

(i) the Authority has not refused to issue a SROC on any of the grounds set out in paragraph (12).

(11) Where a SROC, if issued, will be issued to an electricity supplier pursuant to paragraph (8)(a) or (8)(b), the references in paragraph (10)(c) to the operator of the generating station shall be treated as references to that electricity supplier; but paragraph (10)(c)(iii) shall not apply.

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

(a) is not satisfied as to the reliability or accuracy of the information being presented to it in relation to the issue of the SROC;

(b) except in the case of a SROC certifying the matters within section 32B(2A) of the Act, considers that the declaration in paragraph (10)(c) is not accurate in relation to the electricity in respect of which the Authority is considering issuing the SROC;

(c) except in the case of a SROC certifying the matters within section 32B(2A) of the Act, has reason to believe that the electricity in respect of which the Authority is considering issuing the SROC was consumed in circumstances which resulted in the electricity not having been supplied by an electricity supplier to customers in Great Britain; or

(d) is not satisfied that the operator of the generating station has, during the relevant month, complied with any condition to which accreditation of the relevant generating station is subject.

(13) Where it issues SROCs pursuant to this article the Authority shall-

(a) determine the amount of electricity which is to be regarded as having been generated from eligible renewable sources by a generating station in a particular month ("the relevant month") and, in determining that amount, it shall use, in the case of the amounts for "gross output" and "input electricity" (as those two expressions are defined in article 12(5)) the most accurate figures for those amounts which are known to or estimated by the Authority at the end of the second month following the end of the relevant month and it shall disregard any changes to those figures after the end of the said second month and article 12 shall have effect subject to this sub-paragraph;

(b) deduct from the amount determined in accordance with sub-paragraph (a) any electricity in respect of which in the relevant month any of the criteria in paragraph (10) were not satisfied;

(c) determine the amount of electricity which results from the calculations in sub-paragraphs (a) and (b) and round the amount so determined to the nearest megawatt hour (with any exact half megawatt hour being rounded upwards); and

(d) issue SROCs appropriate to the amount of electricity determined pursuant to sub-paragraph (c) to the operator of the generating station or to the electricity supplier in accordance with paragraphs (7) and (8) and in determining the number of SROCs which it is appropriate to issue proceed on the basis that one SROC represents one megawatt hour of electricity.

(14) The Authority shall issue SROCs 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 SROCs 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)

(a) This paragraph applies to generating stations with a declared net capacity of 50 kilowatts or less ("sub-50 kilowatt stations").

(b) The operator of a sub-50 kilowatt station may-

give notice in writing to the Authority that its entitlement to SROCs in respect of electricity generated by that station ("the relevant station") shall be determined on the basis set out in the remainder of this paragraph.

(c) Sub-paragraph (d) shall apply-

(d) Where this sub-paragraph applies, the reference to "month" in each place where it occurs in articles 2(1) (definition of biomass) 4, 5, 10, 11 and 12 and Schedule 2 shall be taken to be a reference to "obligation period", subject to the following exceptions-

(e) An operator who has given notice under sub-paragraph (b) may-

by notice in writing to the Authority, withdraw the notice given under sub-paragraph (b).

(f) Where an operator gives notice under sub-paragraph (e) the Authority shall, from the beginning of the obligation period in respect of which the operator gave that notice, determine the operator's entitlement to SROCs in respect of electricity generated by the relevant station on the basis set out in paragraph (14) above.

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

(a) shall, where in respect of any electricity generated by a generating station in a particular month it is satisfied that the declaration provided to it by the operator of that generating station pursuant to article 4(10)(c) or by the electricity supplier pursuant to article 4(11) is false or that a SROC was issued on the basis of any fraudulent behaviour, statement or undertaking on the part of the operator of that generating station or any connected person, revoke all SROCs issued in respect of that generating station in that month;

(b) shall revoke any SROC certifying the matters within section 32B(2A) of the Act where the Northern Ireland Authority has notified the Authority that it is not satisfied that the electricity in question has been supplied to customers in Northern Ireland;

(c) shall, in accordance with the procedure laid down in paragraph (2), revoke any SROC where it is otherwise satisfied that the SROC is inaccurate;

(d) may, in accordance with the procedure laid down in paragraph (2), revoke any SROC where-

(e) shall, in reaching a decision as to the inaccuracy of a SROC for the purposes of paragraph (1)(c) and in exercising its powers to revoke a SROC pursuant to paragraph (1)(d), disregard any changes to the amounts for "gross output" and "input electricity" (as those two expressions are defined in article 12(5)) which were used by it (as provided in article 4(13)(a)) to determine the amount of electricity to be regarded as having been generated from eligible renewable sources by a particular generating station in a particular month.

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

(3) Where the Authority has revoked a SROC-

(a) it shall as soon as practicable give notice of such revocation in writing to the registered holder of the SROC at the time of revocation;

(b) other than when a SROC has been revoked in accordance with paragraph (1)(a), the Authority may, in circumstances where it considers it appropriate to do so, issue a replacement SROC in accordance with the procedures laid down in paragraph (4) provided that it is satisfied that each of the relevant criteria in article 4(10) is met and such SROC shall be treated as if issued under article 4.

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

(a) allocate to the replacement SROC the lowest SROC sequence number of any SROC previously issued in respect of the same generating station and same month that has been revoked which has not already been allocated to a replacement SROC which has not itself been revoked;

(b) issue each replacement SROC to the person to whom the SROC issued in respect of that generating station and that month and bearing the same SROC sequence number was previously issued; and

(c) proceed on the basis that one SROC represents one megawatt hour of electricity (with any exact half megawatt hour being rounded upwards).

The amount of the renewables obligation
     6. - (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 Scotland 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 1 against the reference to that obligation period in the first column of Schedule 1.

    (3) For the purposes of paragraph (1) the amount of the electricity supplied by the designated electricity supplier to customers in Scotland during an obligation period is to be determined by taking the aggregate of the estimated figures for its total sales of electricity to customers in Scotland 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 to such table as is published by the Department of Trade and Industry in substitution for Table 5.5.

    (5) Each designated electricity supplier shall furnish to the Department of Trade and Industry the estimated figures relating to its total sales of electricity to customers in Scotland 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 its 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 Scotland during that obligation period (as determined pursuant to paragraph (3)).

Alternative way of discharging renewables obligation: payments
     7. - (1) Instead of producing certificates pursuant to article 3, a designated electricity supplier may discharge (in whole or in part) its 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 �32.33 for each megawatt hour of electricity generated from eligible renewable sources for which the designated electricity supplier does not produce certificates pursuant to article 3 or article 9 or NIROCs pursuant to article 8 ("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 articles 18 and 19 "the retail prices index" means-

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

(b) where the index is not published for a year, any substituted index or figures published by that Office.

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

    (2) A NIROC 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 NIROC for the purposes of the NIRO Order under which it was issued a notification in writing identifying the NIROC to be so produced and giving its NIROC identifier.

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

Alternative way of discharging renewables obligation: certificates certifying the matters in section 32B(2A) of the Act
     9. - (1) Subject to article 10(1), instead of producing certificates pursuant to article 3, a designated electricity supplier may discharge (in whole or in part) its renewables obligation in relation to a particular obligation period by producing to the Authority in accordance with this article certificates issued by the Authority and certifying the matters in section 32B(2A) of the Act, provided that such certificates relate to electricity generated from eligible renewable sources.

    (2) A certificate 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 holds the certificate, a notification in writing identifying the certificate to be produced for that purpose and, in the case of a SROC, the SROC identifier (as defined in paragraph 2 of Schedule 2).

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

Further provision in relation to production of SROCs and NIROCs
     10. - (1) A designated electricity supplier may discharge up to 25 per cent of its renewables obligation in respect of an obligation period by producing to the Authority certificates issued by the Authority under section 32B of the Act and eligible NIROCs relating to electricity supplied in the immediately preceding obligation period.

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

(a) within the period from 1st April 2005 up to and including 31st March 2006, no more than 25 per cent;

(b) within the period from 1st April 2006 up to and including 31st March 2011, no more than 10 per cent; and

(c) within the period from 1st April 2011 up to and including 31st March 2016, no more than 5 per cent

of a designated electricity supplier's renewables obligation may be satisfied by the production of certificates issued by the Authority under section 32B of the Act and eligible NIROCs issued in respect of generating stations which during the month to which a SROC or NIROC 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 certificate issued under section 32B of the Act or a NIROC which has previously been or simultaneously is produced to the Northern Ireland Authority under a NIRO 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 (13).

    (2) The following shall be excluded generating stations-

(a) large hydro generating stations except those first commissioned after 1st April 2002;

(b) subject to paragraphs (6) and (7), generating stations (other than micro hydro generating stations) which were first commissioned before 1st January 1990 and where the main components have not been renewed since 31st December 1989 as described in paragraph (14);

(c) generating stations located outside the United Kingdom, except generating stations which are not located on land and which are directly and exclusively connected to a transmission or distribution network located in Northern Ireland; and

(d) generating stations generating electricity under the arrangements or additional arrangements referred to in article 35(1) of the Northern Ireland Electricity Order;

(3)

(a) This paragraph applies where-

(b) A generating station-

shall be an excluded generating station.

(c) Sub-paragraph (b) shall not apply to a generating station which, during the month in question, generates only electricity which is sold pursuant to another extant qualifying arrangement.

(d) In this paragraph and in paragraph (13), in relation to a person who is a party to the applicable qualifying arrangement ("the first person"), another person ("the second person") is a "linked person" where the second person has given or has arranged to give or has ensured or has 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.

(e) The references in sub-paragraph (d) to the first person and the second person shall include any person who is a connected person in relation to either of them.

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

(a) the only waste by which it is fuelled in that month is biomass; or

(b) all the waste by which it is fuelled in that month which is not biomass has first been manufactured into fuel which is in either a gaseous or liquid form (or both) by means of plant and equipment using advanced conversion technologies only.

    (5) 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.

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

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

(a) prior to 1st April 2003 at least 75 per cent of the energy content of the fuel by which it was fuelled was derived from fossil fuel; and

(b) during no month (being a month after March 2004) after the first month during which it was fuelled wholly by biomass has the energy content of the fuel by which it was fuelled been derived as to more than 75 per cent from fossil fuel.

(8)

(a) After 31st March 2009 a generating station which in any month is fuelled partly by fossil fuel and partly by biomass (and by no other fuel) shall be an excluded generating station during that month if, during that month, less than the specified percentage of the energy content of the biomass derives from energy crops.

(b) In sub-paragraph (a), "the specified percentage" means-

    (9) 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).

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

    (11) 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 (15)(a)(i) unless that substance is a substance falling within paragraph (15)(a)(ii) or it is waste or a component of biomass.

    (12) 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 not biomass is or is derived directly or indirectly from one or more of the substances referred to in paragraph (15)(a)(i).

    (13)

(a) This paragraph applies where an extant qualifying arrangement ("the applicable qualifying 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.

(b) A generating station-

shall be an excluded generating station.

(c) Sub-paragraph (b) shall not apply to a station which, during the month in question, generates only electricity which is sold pursuant to another extant qualifying arrangement.

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

(a) in the case of a hydro generating station the following parts have been installed in the generating station after 31st December 1989 and were not used for the purpose of electricity generation prior to that date-

(b) in the case of any other generating station all the boilers and turbines (driven by any means including wind, water, steam or gas) have been installed in the generating station after 31st December 1989 and were not used for the purpose of electricity generation prior to that date.

(15) In this article and in Schedule 3-

(a) "fossil fuel" means-

(i) coal, lignite, natural gas (as defined in the Energy Act 1976[

other than anything, which is or is derived directly or indirectly from any of the substances referred to in sub-paragraph (a)(i), which is waste or a component of biomass;

(b) "waste" is to be regarded as including anything derived directly or indirectly from waste (as that term is defined in article 2(1)); and

(c) "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.

(16) In this article and in article 10 and Schedule 3, 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.

(17) For the purposes of this article and article 10 and Schedule 3, fossil fuel or waste which a generating station uses for-

shall only be treated as comprising fuel used to generate electricity in any month in which the combined energy content of the fossil fuel or waste, or both, which the generating station uses for those purposes exceeds 10 per cent of the energy content of the energy sources by which it is fuelled.

(18) For the purposes of this article and Schedule 3, 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-

(a) "the renewable output" is such amount as is obtained by deducting from the gross output of that generating station in that month the amount of electricity which has been generated from fossil fuel in that month; and

(b) "the net output" is such amount as is obtained by deducting from the gross output of that generating station in that month the input electricity of that generating station in that month.

    (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-

(a) "fossil fuel" has the meaning given to it by section 32 of the Act except that the expression also includes any substance which is derived directly or indirectly from fossil fuel (whether or not such substance is waste or a component of biomass);

(b) "gross output" means, in relation to any month, the total amount of electricity generated by a generating station in that month; and

(c) "input electricity" means, in relation to any month, all the electricity used by a generating station in that month (whether or not it is generated by the generating station and whether or not it is used while the generating station is generating electricity) for a purpose directly relating to the operation of that generating station, including fuel handling, fuel preparation, maintenance and pumping water.

(a) the SROC identifier of any SROC so notified which it has revoked under article 5 and whether it has issued a replacement SROC under article 5(3)(b) in respect of any such SROC;

(b) the SROC identifier of any SROC so notified that has also been produced by a designated electricity supplier under article 3(2) and the date on which it was also produced.

    (3) The Authority shall as soon as reasonably practicable after the specified day notify the Northern Ireland Authority as to the number of certificates produced to the Authority under article 3 and the number of certificates certifying the matters in section 32B(2A) of the Act produced to the Authority under article 9 by each designated electricity supplier in respect of the obligation period to which the specified day relates.

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 its renewables obligation in full by the specified day ("defaulting supplier") that it has not fully discharged its 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 it shall be treated as having discharged its 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 it shall be treated as having discharged the same proportion of the amount of its 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 its 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 (7), as if-

(a) the references in paragraphs (3) to (7) of that article to "the buy-out fund" were references to that late payment fund; and

(b) the references in paragraphs (3) to (7) of that article to a "relevant obligation period" were references to the obligation period in question.

(5) The Authority shall not, during the late payment period, impose a penalty under section 27A(1) of the Act on any defaulting supplier in respect of that supplier's failure to discharge its renewables obligation in full before the specified day.

(6) In this article-

(a) "late payment" means the total of-

(b) "the late payment fund" means the aggregate of the amounts received by the Authority under paragraphs (2) and (3) in respect of the obligation period in question (together with any interest received thereon by the Authority); and

(c) "specified rate" means 5 percentage points above the base rate of the Bank of England as at the first day of the late payment period in relation to the obligation period.

Mutualisation
18. - (1) As soon as reasonably practicable after the end of the late payment period in relation to an obligation period, the Authority shall-

(a) determine whether a relevant shortfall has occurred in relation to the obligation period; and

(b) where a relevant shortfall has occurred, notify each relevant supplier of-

(2) Where the Authority notifies relevant suppliers under paragraph (1)(b) it shall publish a notice stating-

(c) the size of the shortfall; and

(d) the amount to be recovered from all relevant suppliers in accordance with paragraph (3).

    (3) Where a relevant shortfall has occurred, the specified amount shall be recovered from all relevant suppliers in accordance with paragraph (4).

    (4) A relevant supplier shall make a payment to the Authority which is the same proportion of the sum to be recovered under paragraph (3) as the proportion which that supplier's renewables obligation for the shortfall period bears to the total of the renewables obligations of all the relevant suppliers for that shortfall period.

    (5) When calculating the amount to be recovered from all relevant suppliers in accordance with paragraph (3), the Authority shall, where a non-compliant United Kingdom supplier has complied in part with any renewables obligation imposed on that supplier in accordance with section 32(1) of the Act or article 52 of the Northern Ireland Energy Order by producing qualifying certificates to the Authority or to the Northern Ireland Authority in respect of a shortfall period or any period contemporaneous to the shortfall period, reduce the specified amount in accordance with paragraph (6).

    (6) Where paragraph (5) applies, the specified amount shall be reduced by a proportion which is equal to the proportion which the amount of the electricity covered by all of the qualifying certificates produced by the non-compliant United Kingdom supplier as mentioned in paragraph (5) bears to the total amount of the electricity covered by all of the qualifying certificates produced to the Authority or to the Northern Ireland Authority in respect of that shortfall period or any period contemporaneous to that shortfall period in discharge of any renewables obligation imposed in accordance with section 32(1) of the Act or article 52 of the Northern Ireland Energy Order.

    (7) Subject to paragraphs (16) and (17), a payment required under paragraph (4) shall be paid in the following instalments-

(a) 25 per cent of the total payment required shall be paid to the Authority before the 1st September in the mutualisation period;

(b) 25 per cent of the total payment required shall be paid to the Authority before the 1st December in the mutualisation period;

(c) 25 per cent of the total payment required shall be paid to the Authority before the 1st March in the mutualisation period; and

(d) 25 per cent of the total payment required shall be paid to the Authority before the 1st June in the obligation period immediately following the mutualisation period.

(8) The Authority shall pay out the mutualisation fund in accordance with the system of allocation specified in paragraphs (9) to (13) by the following dates-

(a) 1st November in the mutualisation period;

(b) 1st February in the mutualisation period;

(c) 1st May in the obligation period immediately following the mutualisation period; and

(d) 1st August in the obligation period immediately following the mutualisation period.

    (9) The mutualisation fund relating to a shortfall period shall be divided amongst the compliant United Kingdom suppliers who meet one or more of the applicable conditions referred to in paragraphs (10), (11) and (12) so that each such compliant United Kingdom supplier receives a proportion of the mutualisation fund calculated in accordance with paragraph (13).

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

    (11) The applicable condition for an electricity supplier supplying electricity in England and Wales is that, in respect of a period contemporaneous with the shortfall period, it has complied (in whole or in part) with any renewables obligation imposed on it in accordance with section 32(1) of the Act by producing qualifying certificates to the Authority.

    (12) The applicable condition for a Northern Ireland supplier is that, in respect of a period contemporaneous with the shortfall period, it has complied (in whole or in part) with any renewables obligation imposed on it in accordance with article 52 of the Northern Ireland Energy Order by producing qualifying certificates to the Northern Ireland Authority.

    (13) The proportion of the mutualisation fund which each compliant United Kingdom supplier is entitled to receive under paragraph (9) is equal to the proportion which the amount of the electricity covered by all the qualifying certificates it has produced as mentioned in paragraphs (10), (11) and (12), bears to the total amount of the electricity covered by all of the qualifying certificates produced to the Authority or to the Northern Ireland Authority in respect of the shortfall period or any period contemporaneous with the shortfall period, in discharge of any renewables obligation imposed in accordance with section 32(1) of the Act or article 52 of the Northern Ireland Energy Order, excluding any qualifying certificates produced by non-compliant United Kingdom suppliers.

    (14) Where a relevant shortfall has occurred, if a designated electricity supplier makes a payment to other United Kingdom suppliers in relation to its failure to discharge its renewables obligation in full in relation to the shortfall period (excluding any payments made by the first supplier in respect of mutualisation payments made by the other designated electricity suppliers)-

(a) the designated electricity supplier who made such payment shall notify the Authority, immediately after making the payments, of which United Kingdom suppliers the payments were made to, how much each supplier received and to which obligation period the payment relates; and

(b) any designated electricity supplier who received such payments shall notify the Authority immediately after receiving the payment, of the amount it received.

(15) If the Authority receives a notification from a United Kingdom supplier in relation to a payment made by a designated electricity supplier in respect of the designated electricity supplier's failure to discharge its renewables obligation in full for the shortfall period and, due to the recalculations required under paragraph (16), it is not reasonably practicable for it to pay out the mutualisation fund by the date required by paragraph (8), the Authority shall pay out the mutualisation fund as soon as reasonably practicable after that date.

(16) Where, before the 1st August in the obligation period immediately following the mutualisation period, the Authority receives a notification from a United Kingdom supplier in relation to a payment made by a designated electricity supplier in respect of the designated electricity supplier's failure to discharge its renewables obligation in full for the shortfall period, the Authority shall, as soon as reasonably practicable-

(a) recalculate the amount to be recovered under paragraph (3) by reducing the specified amount by the total amount received by the United Kingdom suppliers;

(b) issue a revised notification to each relevant supplier detailing-

    (17) Where the instalment payments already made by a relevant supplier are less than the recalculated supplier payment required from a relevant supplier, that supplier shall make future instalment payments on the dates mentioned in paragraph (7) which have not yet passed, each instalment payment being equal to the outstanding amount divided by the number of future instalment payments.

    (18) Where following a recalculation under paragraph (16), a relevant supplier has paid more than the recalculated supplier payment, the Authority shall, where it has received instalment payments under paragraph (7) but has not yet paid out the mutualisation fund, repay to each relevant supplier from the mutualisation fund, the difference (together with any interest received thereon by the Authority) between the amount that the supplier has paid and the recalculated supplier payment.

    (19) Where the Authority is required to repay sums to each relevant supplier in accordance with paragraph (18) and the mutualisation fund is insufficient to enable the Authority to repay each relevant supplier in full, the Authority shall reduce the sum to be paid to each supplier by a proportion equal to the proportion which that deficit bears to the amount that would have sufficed for that purpose; and the supplier shall not be entitled to any further payments from the Authority in this regard.

    (20) Where following a recalculation under paragraph (16), a relevant supplier has paid more than the recalculated supplier payment but there is no mutualisation fund to pay out, the supplier shall not be entitled to any repayment from the Authority.

    (21) Where a designated electricity supplier receives a payment from an electricity supplier supplying electricity in England and Wales in relation to the electricity supplier's failure to discharge in full any renewables obligation imposed on it in accordance with section 32(1) of the Act, the designated electricity supplier shall notify the Authority, immediately after receiving the payment, of the amount it received.

    (22) Where a person required to make a payment under paragraph (4)-

(a) fails to make payment in full in accordance with that paragraph, and

(b) at any time during or after the end of the shortfall period in question, ceases to hold a licence to supply electricity under section 6(1) of the Act,

sections 25 to 28 of the Act apply in respect of that person in respect of the obligations imposed by this article as if that person still held a licence to supply electricity.

(23) In this article-

(a) "compliant United Kingdom supplier" means a United Kingdom supplier which, at the end of the late payment period has discharged or is treated as if it had discharged in full every renewables obligation imposed on that supplier in accordance with section 32(1) of the Act or article 52 of the Northern Ireland Energy Order, in respect of the obligation period to which that late payment period relates, or any period contemporaneous with that obligation period;

(b) "mutualisation fund" means the aggregate at any given time of the amounts (excluding any amounts repaid under paragraph (18)) received by the Authority under this article in respect of a shortfall period (together with any interest received thereon by the Authority);

(c) "mutualisation payment" means a payment required under paragraph (4);

(d) "mutualisation period" means the second obligation period following a shortfall period;

(e) "non-compliant United Kingdom supplier" means a United Kingdom 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 renewables obligations imposed on that supplier in accordance with section 32(1) of the Act or article 52 of the Northern Ireland Energy Order, in respect of the obligation period to which that late payment period relates, or any period contemporaneous with that obligation period;

(f) "outstanding amount" means the recalculated supplier payment less the total of any instalment payments already made by the relevant supplier in accordance with paragraph (7);

(g) "payment total" means the total of-

(h) "recalculated supplier payment" has the meaning given by paragraph (16)(b)(ii);

(i) "relevant shortfall" means, in relation to any obligation period set out in the first column of Schedule 4, a shortfall which is equal to or greater than the corresponding amount set out in the second column of that Schedule;

(j) "relevant supplier" means any designated electricity supplier with a renewables obligation for the shortfall period, which at the end of the late payment period in relation to the shortfall period, had discharged or is treated as if it had discharged the whole or part of, its renewables obligation;

(k) "the retail prices index" has the same meaning as in article 7;

(l) "shortfall" means the difference between-

(m) "shortfall period" means an obligation period in respect of which a relevant shortfall occurs;

(n) "specified amount" means subject to paragraphs (5), (6), (16) and (24), the whole of the relevant shortfall, except to the extent that it exceeds �20,000,000.

    (24) 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 figure of �20,000,000 used in the definition of specified amount shall, in relation to the obligation period beginning on the 1st April immediately following the later year, 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.

    (25) Where the figure of �20,000,000 is modified under paragraph (24) the resulting figure shall be rounded to the nearest pound (with any exact half of a pound being rounded upwards).

Functions of the Authority
     19. 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-

(a) the accreditation of generating stations (to be notified to the operator of a generating station which is being accredited in writing from such date and subject to such conditions as the Authority considers appropriate) and the withdrawal of such accreditation or the alteration of any conditions attached to it (such withdrawal or alteration to be notified to the operator of the affected generating station in writing);

(b) keeping and maintaining a list of accredited generating stations and the conditions for their accreditation and making such list available to the public;

(c) issuing and revoking SROCs in accordance with articles 4 and 5;

(d) keeping and maintaining a list of SROCs which have been revoked and making such list available to the public;

(e) calculating and publishing before the start of each obligation period (with the exception of the first obligation period to which this Order relates) the amount of the payment per megawatt hour of electricity referred to in article 7 resulting from the adjustments made to reflect changes in the retail prices index;

(f) calculating and publishing before the start of each obligation period (with the exception of the first obligation period to which this Order relates) the figure referred to in article 18(24) resulting from the adjustments made to reflect changes in the retail prices index;

(g) by 1st April each year (with the exception of 1st April 2005 and 2006) publishing an annual report in relation to the obligation period ending on the 31st March in the previous calendar year, such report to include details (or, in the case of sub-paragraph (ix), a summary) of-

(h) monitoring implementation of the renewables obligation and compliance by designated electricity suppliers and operators of generating stations with this Order (including compliance by operators of generating stations with any conditions attached to their accreditation) and such monitoring may include conducting enquiries or investigations into the quantities of electricity generated from eligible renewable sources by accredited generating stations, the quantities of such electricity supplied to customers in Great Britain, the transfer and holding of SROCs, the effect of such matters on the making and allocation of payments under articles 7, 15, 17 and 18 and the effect of the renewables obligation on designated electricity suppliers and the operators of generating stations;

(i) publishing at its discretion reports of enquiries or investigations conducted by the Authority pursuant to sub-paragraph (h); and

(j) the provision of such information to the Northern Ireland Authority as the Authority considers may be relevant to the exercise of the Northern Ireland Authority's functions under any NIRO Order.

Revocation, transitional and savings
     20. - (1) Subject to paragraphs (2) to (10), the 2004 Order is hereby revoked.

    (2) The 2004 Order shall continue to apply in respect of the revocation, transitional and savings provisions in article 14 of that Order.

    (3) The 2004 Order shall continue to apply in respect of the renewables obligation of each designated electricity supplier to produce to the Authority evidence in accordance with the terms of article 3 of the 2004 Order, before the specified day of 1st October 2005 and for the purposes of this paragraph and paragraphs (4) to (9), the first line in the column headed "Obligation period", and the first percentage specified in the column headed "Percentage of total supplies" in Schedule 1 to the 2004 Order shall continue to apply.

    (4) The 2004 Order shall continue to apply in respect of the obligations of each designated electricity supplier in terms of article 6(5) of the 2004 Order to furnish information to the Department of Trade and Industry by no later than the 20th June 2005.

    (5) The 2004 Order shall continue to apply in respect of the obligation of each designated electricity supplier in terms of article 6(6) of the 2004 Order to inform the Authority of information before 7th August 2005.

    (6) The 2004 Order shall continue to apply in respect of the ability of a designated electricity supplier to discharge its renewables obligation in relation to a particular obligation period by making a payment to the Authority before the specified day of 1st October 2005 in accordance with the terms of article 7 of the 2004 Order.

    (7) The 2004 Order shall continue to apply in respect of the obligation of the Authority to pay out the buy-out fund, by 1st December 2005 in accordance with the terms of article 12 of the 2004 Order.

    (8) The 2004 Order shall continue to apply in respect of the obligations of the Authority to pay out the late payment fund, by 1st April 2005 and 1st April 2006, respectively, all in accordance with article 12 of the 2004 Order.

    (9)

(a) Subject to (b), the 2004 Order shall continue to apply in respect of all the functions of the Authority referred to in article 13 of the 2004 Order insofar as they relate to the obligation period under the 2004 Order ending on 31st March 2005

(b) The 2004 Order shall continue to apply in respect of the functions of the Authority referred to in article 13(e) of the 2004 Order insofar as they relate to the obligation periods under the 2004 Order up to and including the obligation period ending on 31st March 2006.

(10) Where, immediately before the coming into force of this Order, article 2(4) of the 2004 Order had effect in relation to any sub-50 kilowatt station (as defined in article 4(15)), article 4(15) shall apply in relation to that station in respect of the obligation period from 1st April 2005 to 31st March 2006 as if-

(a) that obligation period were a relevant obligation period for the purposes of article 4(15); and

(b) the operator of that station had given notice under article 4(15)(b)(ii) in respect of that station not less than one month before the beginning of that obligation period.

ALLAN WILSON
Authorised to sign by the Scottish Ministers

St Andrew's House, Edinburgh
24th March 2005

SCHEDULE 1Articles 2(1) and 6(2)

AMOUNT OF THE RENEWABLES OBLIGATION

Obligation period	Percentage of total supplies
1st April 2005 to 31st March 2006	5.5
1st April 2006 to 31st March 2007	6.7
1st April 2007 to 31st March 2008	7.9
1st April 2008 to 31st March 2009	9.1
1st April 2009 to 31st March 2010	9.7
1st April 2010 to 31st March 2011	10.4
1st April 2011 to 31st March 2012	11.4
1st April 2012 to 31st March 2013	12.4
1st April 2013 to 31st March 2014	13.4
1st April 2014 to 31st March 2015	14.4
1st April 2015 to 31st March 2016	15.4
Each subsequent period of twelve months ending with the period of twelve months ending on 31st March 2027	15.4

SCHEDULE 2Articles 2(1), 3(1), 4, 9(2) and 19(g)(iv)

THE REGISTER

1. The Authority shall maintain the Register (which may be in electronic form) at any of its premises.

2. Particulars of a SROC comprise-

3. A person may only be the registered holder of a SROC or have an entry made and maintained in respect of them under article 4(4)(b) if they provide 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 SROC which-

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

6. Where the registered holder of a SROC and a person whom the registered holder wishes to be the substitute (as defined in this paragraph) require in respect of a particular SROC 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 SROC and the substitute named therein that the request has been received and, in the event that the requests from the registered holder of the SROC and the person whom the registered holder wishes to be the substitute are not identical in all material respects or do not include the SROC identifier of the SROC, shall draw this to their attention.

     8. Where a SROC is issued in accordance with article 4 or a replacement SROC 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 SROC or a replacement SROC 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 SROC until such time as the particulars of the SROC recorded in the Register identify the substitute 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 that person under article 4(4)(b) should be amended or deleted, that person 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.

SCHEDULE 3Articles 2(1) and 11

CONDITIONS OF ELIGIBILITY FOR NIROCs

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

     2. The electricity was generated in Northern Ireland (which for the purposes of this paragraph shall not include any part of the territorial sea of the United Kingdom).

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

     4. Subject to paragraphs 5 and 6, the electricity to which the NIROC relates was not generated by a generating station (other than a micro hydro generating station) that was first commissioned before 1st January 1990 and where the main components of that generating station have not been renewed since 31st December 1989 as described in paragraph 17.

     5. Paragraph 4 shall not apply in relation to a NIROC issued in respect of electricity generated by a generating station that during the month to which the NIROC relates was fuelled partly by fossil fuel and partly by biomass (and by no other fuel).

     6. Paragraph 4 shall not apply in relation to a NIROC issued in respect of electricity generated by a generating station that during the month to which the NIROC relates was fuelled wholly by biomass, if-

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

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

     9. After 31st March 2009, the electricity to which the NIROC relates was not generated by a generating station that during the month to which the NIROC 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.

     10. In paragraph 9 of this Schedule, "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.

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

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

     13. The electricity to which the NIROC relates was not generated by a generating station that during the month to which the NIROC relates was fuelled wholly or partly by any substance derived directly or indirectly from any of the substances referred to in article 11 (15)(a)(i) unless that substance is a substance falling within article 11(15)(a)(ii) or it is waste or a component of biomass.

     14. The electricity to which the NIROC relates was not generated by a generating station that during the month to which the NIROC relates was fuelled wholly or partly by waste where all the waste which is not biomass is or is derived directly or indirectly from one or more of the substances referred to in article 11(15)(a)(i).

     15.

(b) If this paragraph applies then it is a condition of eligibility that the electricity to which the NIROC relates was not generated by a generating station that is situated at the location and to which the applicable qualifying arrangement applied at the time it was commissioned, or which is owned or operated by a person who was a party to the applicable qualifying arrangement (or who is a connected person or a linked person in relation to any such party).

(c) This paragraph does not apply to a NIROC relating to electricity generated by a generating station which, during the month in question, generates only electricity which is sold pursuant to another extant qualifying arrangement.

(d) In this paragraph and in paragraph 16, in relation to a person who is a party to the applicable qualifying arrangement ("the first person"), another person ("the second person") is a "linked person" where the second person has given or has arranged to give or has ensured or has 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.

(e) The references in sub-paragraph (d) to the first person and the second person shall include any person who is a connected person in relation to either of them.

16.

17. For the purposes of paragraph 4, the main components of a generating station shall only be regarded as having been renewed since 31st December 1989 where-

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

19.

SCHEDULE 4Article 18(23)(i)

AMOUNT OF RELEVANT SHORTFALL FOR EACH OBLIGATION PERIOD

Obligation Period	Amount
1st April 2005 to 31st March 2006	�550,000
1st April 2006 to 31st March 2007	�670,000
1st April 2007 to 31st March 2008	�790,000
1st April 2008 to 31st March 2009	�910,000
1st April 2009 to 31st March 2010	�970,000
1st April 2010 to 31st March 2011	�1,040,000
1st April 2011 to 31st March 2012	�1,140,000
1st April 2012 to 31st March 2013	�1,240,000
1st April 2013 to 31st March 2014	�1,340,000
1st April 2014 to 31st March 2015	�1,440,000
1st April 2015 to 31st March 2016	�1,540,000
Each subsequent period of twelve months ending with the period of twelve months ending on 31st March 2027	�1,540,000

Notes:

[1] 1989 c.29. Section 62 of the Utilities Act 2000 (c.27) substituted a new section 32 of the Electricity Act 1989 for the section 32 which was originally enacted. The new section 32 of the Electricity Act 1989 has subsequently been amended by sections 115 and 119 of the Energy Act 2004 (c.20). Sections 63 to 65 of the Utilities Act 2000 inserted new sections 32A to 32C of the Electricity Act 1989, which have been amended by sections 115, 116, 118, and 119 of the Energy Act 2004. Section 32BA of the Electricity Act 1989 was inserted by section 117 of the Energy Act 2004. The functions of the Secretary of State, as regards sections 32 and 32A were transferred to the Scottish Ministers by virtue of the Scotland Act 1998 (Transfer of Functions to the Scottish Ministers etc.) (No. 2) Order 2000 (S.I. 2000/3253), article 3. The functions of the Secretary of State in respect of sections 32B and 32C of the Electricity Act 1989 and section 67 of the Utilities Act 2000 were transferred to the Scottish Ministers by virtue of the Scotland Act 1998 (Transfer of Functions to the Scottish Ministers etc.) (No. 2) Order 2001 (S.I. 2001/3504) article 2. The functions of the Secretary of State in respect of sections 32BA and 32(7) of the Electricity Act 1989 and sections 115(6), 116(8), 117(2), 118(2) and 119(7) of the Energy Act 2004 were transferred to the Scottish Ministers by virtue of the Scotland Act 1998 (Transfer of Functions to the Scottish Ministers etc.) Order 2005 (S.I. 2005/849) article 2.back

[2] S.S.I. 2004/170.back

[3] 1988 c.1. Section 839 was amended by the Finance Act 1995 (c.4), section 74 and Schedule 17, paragraph 20 back

[4] S.I. 2000/2727, as amended by S.I. 2001/3268 back

[5] S.I. 1994/3259, as amended by S.I. 1995/68 back

[6] S.I. 1994/3275 (S.190)back

[7] S.I. 1997/248 back

[8] S.I. 1997/799 (S.76)back

[9] S.I. 1998/2353 back

[10] S.I. 1999/439 (S.24)back

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

[12] S.I. 2003/419 (N.I. 6).back

[13] Section 4(4) was amended by section 28 of the Utilities Act 2000 and section 135 of the Energy Act 2004.back

[14] 1990 c.43.back

[15] 1995 c.25. At the time of the making of this Order paragraph 88 of Schedule 22 to the Environment Act 1995 has only been brought into force for the purposes of the Landfill (Scotland) Regulations 2003, SSI. 2003/235, but it is to be treated as if it had been brought into force for all purposes in this article.back

[16] 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

[17] 1976 c.7.back

ISBN 0 11 069526 7

Prepared 5 April 2005

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You are here: BAILII >> Databases >> Statutory Instruments of the Scottish Parliament >> The Renewables Obligation (Scotland) Order 2005 No. 185 URL: http://www.bailii.org/scot/legis/num_reg/2005/20050185.html