Office of Public Sector Information

Small generators

25.—(1) This article applies to generating stations with a declared net capacity of 50 kilowatts or less (“sub-50 kilowatt stations”).

(2) The operator of a sub-50 kilowatt station (or, where SROCs relating to electricity generated by that generating station are issued to an agent by virtue of article 17, that agent and not the operator) may–

(a) where SROCs have not yet been issued in respect of any electricity generated during the course of an obligation period by that station, during the course of that obligation period; or

(b) not less than one month before the beginning of any obligation period (“the relevant obligation period”),

give notice in writing to the Authority that the operator’s 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 article.

(3) Paragraph (4) shall apply–

(a) where an operator or, as the case may be, agent has given notice as specified in paragraph (2)(a), in the case of the relevant station for the remainder of the obligation period during which the notice was given and subsequent obligation periods; and

(b) where an operator or, as the case may be, agent has given notice as specified in paragraph (2)(b), in the case of the relevant station for the relevant obligation period and subsequent obligation periods.

(4) Where this sub-paragraph applies, the reference to “month” in each place where it occurs in articles 6 to 10, 15, 16, 18, 19, 22 and 24 and Schedule 2 shall be taken to be a reference to “obligation period”, subject to the following exceptions–

(a) in article 16(1) the words “of each month” shall be omitted;

(b) in article 22(3)(a) the reference to “the second month” shall remain unchanged; and

(c) in paragraph 2(b)(i) of Schedule 2 the words “the month and year” shall be replaced by “the obligation period”.

(5) An operator or, as the case may be, agent who has given notice under paragraph (2) may–

(a) if that notice was given under sub-paragraph (a), not less than one month before the beginning of any obligation period following the obligation period during which the notice was given; or

(b) if that notice was given under sub-paragraph (b), not less than one month before the beginning of any obligation period following the relevant obligation period,

by notice in writing to the Authority, withdraw the notice given under paragraph (2).

(6) Where an operator or, as the case may be, agent gives notice under paragraph (5), the Authority shall, from the beginning of the obligation period in respect of which the operator or, as the case may be, agent, 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 article 16(1).

(7) Where any SROC to be issued will certify the matters within section 32B(2ZA), (2AA) or (2AC) of the Act, the foregoing provisions of this article shall have effect subject to the following modifications–

(a) references to the relevant station shall be construed as references to the generating stations to which the SROC relates; and

(b) references to the operator of the relevant station shall be construed as references to the operators of those generating stations,

and cognate expressions shall be construed accordingly.

PART 6 Payments out of the Buy-Out Funds

Administrative division of payments made under article 11

26.—(1) For the purpose of making allocations under this Part, the Authority shall divide the amounts which it receives under article 11 in accordance with this article.

(2) The amount determined in accordance with the following formula in respect of an obligation period (“the relevant obligation period”) is referred to as “the wave buy-out fund”–

(3) The amount determined in accordance with the following formula in respect of the relevant obligation period is referred to as “the tidal buy-out fund”–

(4) The aggregate of the amounts received by the Authority under article 11 in respect of the relevant obligation period (together with any interest thereon received by the Authority) less the amounts which constitute the wave buy-out fund and tidal buy-out fund is referred to as “the buy out fund”.

Allocation of the buy-out fund

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

(2) 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 (3), (4) and (5) so that each such United Kingdom supplier receives a proportion of the buy-out fund calculated in accordance with paragraph (6).

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

(4) The applicable condition for an electricity supplier supplying electricity in England and Wales is that, in respect of a period contemporaneous with the relevant obligation 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.

(5) The applicable condition for a Northern Ireland supplier is that, in respect of a period contemporaneous with the relevant obligation 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.

(6) The proportion of the buy-out fund which each United Kingdom supplier is entitled to receive under paragraph (2) is equal to the proportion which the amount of the electricity covered by all of the qualifying certificates it has produced as mentioned in paragraph (3), (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 Northern Ireland 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 Act or article 52 of the Northern Ireland Energy Order.

Allocation of the wave buy-out fund

28.—(1) The Authority shall pay out the wave buy-out fund, by the 1st November immediately following the relevant obligation period in accordance with the system of allocation specified in paragraphs (2) to (4).

(2) The wave buy-out fund relating to a relevant obligation period shall be divided amongst the designated electricity suppliers who meet the condition referred to in paragraph (3) so that each such supplier receives a proportion of the wave buy-out fund calculated in accordance with paragraph (4).

(3) The condition for a designated electricity supplier is that, in respect of the relevant obligation period, it has produced certificates to the Authority in compliance with its renewables obligation which meet (in whole or in part) the minimum wave requirement.

(4) The proportion of the wave buy-out fund which each designated electricity supplier is entitled to receive under paragraph (2) is equal to the proportion which the amount of electricity covered by all of the certificates it has produced as mentioned in paragraph (3) up to a maximum amount equal to the supplier’s minimum wave requirement bears to the total amount of electricity covered by all such certificates produced to the Authority in respect of the relevant obligation period.

(5) If, in the relevant obligation period, there are no designated electricity suppliers who meet the condition referred to in paragraph (3), the Authority shall refund payments made under article 11(5) net of the buy-out price under article 11(2).

Allocation of the tidal buy-out fund

29.—(1) The Authority shall pay out the tidal buy-out fund, by the 1st November immediately following the relevant obligation period in accordance with the system of allocation specified in paragraphs (2) to (4).

(2) The tidal buy-out fund relating to a relevant obligation period shall be divided amongst the designated electricity suppliers who meet the condition referred to in paragraph (3) so that each such supplier receives a proportion of the tidal buy-out fund calculated in accordance with paragraph (4).

(3) The condition for a designated electricity supplier is that, in respect of the relevant obligation period, it has produced certificates to the Authority in compliance with its renewables obligation which meet (in whole or in part) the minimum tidal requirement.

(4) The proportion of the tidal buy-out fund which each designated electricity supplier is entitled to receive under paragraph (2) is equal to the proportion which the amount of electricity covered by all of the certificates it has produced as mentioned in paragraph (3) up to a maximum amount equal to the supplier’s minimum tidal requirement bears to the total amount of electricity covered by all such certificates produced to the Authority in respect of the relevant obligation period.

(5) If, in the relevant obligation period, there are no designated electricity suppliers who meet the condition referred to in paragraph (3), the Authority shall refund payments made under article 11(6) net of the buy-out price under article 11(2).