Office of Public Sector Information

PART 3 Qualifying actions, notifications and approvals

Achievement of carbon emissions reduction obligations

9.—(1) A supplier must achieve its carbon emissions reduction obligation by promoting qualifying actions to domestic energy users.

(2) A qualifying action must be approved by the Authority.

(3) Subject to paragraph (4), if a supplier promotes—

(a) a market transformation action;

(b) a demonstration action; or

(c) both such actions,

no more than 6% of the supplier’s carbon emissions reduction obligation may be achieved by these actions.

(4) Where—

(a) the Authority approves the promotion of microgeneration as a market transformation action; and

(b) at least 2% of a supplier’s carbon emissions reduction obligation is achieved by that promotion,

the limit in paragraph (3) is 8%.

(5) The Authority—

(a) must determine whether or not the limit in paragraph (3) is exceeded; but

(b) in doing so it must not apply the increased reduction provided for by article 19(4)(b) to a market transformation action.

Purposes for which a qualifying action must be promoted

10.—(1) An action is a qualifying action only if it is promoted for the purpose of—

(a) achieving improvements in energy efficiency;

(b) increasing the amount of electricity generated or heat produced by microgeneration;

(c) increasing the amount of heat produced by any plant which relies wholly or mainly on wood; or

(d) reducing energy consumption.

(2) In this article, “plant” includes any equipment, apparatus or appliance.

Notifications

11.—(1) An action which a supplier intends to be a qualifying action must be notified to the Authority within one month of the action being commenced.

(2) A notification must include sufficient information to show how the supplier intends the action to be—

(a) a standard action;

(b) a market transformation action;

(c) a priority group flexibility action; or

(d) a demonstration action.

(3) In relation to a demonstration action, the supplier must provide with the notification—

(a) the following information—

(i) how the action is expected to promote a reduction in carbon emissions;

(ii) the arrangements for monitoring whether the action reduces carbon emissions;

(iii) how the supplier will assess the effectiveness of the action at promoting a reduction in carbon emissions;

(iv) a justification for the scale of the proposed action; and

(v) the estimated cost of promoting and monitoring such an action and a breakdown of that cost;

and

(b) whether or not it consents to the publication of information provided to the Authority in relation to the monitoring and assessment of the action.

Approval of actions by the Authority

12.—(1) The Authority must determine whether or not it approves an action as a qualifying action.

(2) Where the Authority approves an action, it must be satisfied that the action is promoted in accordance with article 10.

(3) Subject to paragraph (4), the Authority must not approve an action as a market transformation action where—

(a) there exists a similar action to the type of action intended to be promoted; and

(b) the action to be promoted does not achieve a significantly greater reduction in carbon emissions than that similar action.

(4) Paragraph (3) does not apply to the promotion of solid wall insulation or micro-cogeneration units.

(5) For the purposes of paragraph (3) the Authority must compare the carbon emissions reduced by the particular action with the benchmark action.

(6) The benchmark action means the action under the 2001 Order which achieved the greatest carbon emission reductions for an action of that type.

(7) The Authority must not approve an action as a demonstration action unless—

(a) it is satisfied that the information provided under article 11(3)(a) is reasonable; and

(b) the supplier consents to the to the publication of information in relation to the monitoring and assessment of the action.

(8) The Authority must notify the supplier of its determination under this article and give reasons for it.

PART 4 Priority group obligations

Priority group obligations

13.—(1) A supplier must achieve the priority group obligation.

(2) The priority group obligation means that at least 40% of the carbon emissions reduction obligation is achieved by action carried out in the priority group.

Priority group flexibility action

14.—(1) No more than 12.5% of the priority group obligation may be achieved by promoting priority group flexibility action.

(2) Priority group flexibility action that exceeds the limit in paragraph (1) is not a qualifying action.

PART 5 Estimates, reporting and monitoring

Estimated reduction in carbon emissions

15.—(1) The Authority must estimate the reduction in carbon emissions for an action which it approves as a qualifying action.

(2) To estimate the reduction for a standard action, the Authority must apply to that action the appropriate carbon co-efficient values set out in Schedule 3.

(3) To estimate the reduction for a market transformation action, the Authority must—

(a) apply to that action the appropriate carbon co-efficient values set out in Schedule 3; and

(b) increase the reduction in carbon emissions expected to be achieved by that action by 50%.

(4) To estimate the reduction for a priority group flexibility action, the Authority must do so in accordance with article 20 as if the reduction in carbon emissions expected to be achieved by such action is achieved.

(5) To estimate the reduction for a demonstration action, the Authority must use the formula in article 21.

(6) The Authority must notify a supplier of the estimates it makes under this article.

Reporting and monitoring

16.—(1) A supplier must provide to the Authority—

(a) information relating to—

(i) its proposals for complying with any aspect of its carbon emissions reduction obligation; and

(ii) whether the supplier has complied with that obligation;

and

(b) in relation to a demonstration action—

(i) the information obtained by the supplier on whether the action is reducing carbon emissions; and

(ii) the supplier’s assessment of the effectiveness of the action at promoting a reduction in carbon emissions.

(2) The information must be provided by a supplier in such form and at such time as the Authority may reasonably request.

(3) Information provided under paragraph (1)(b) must be published by the Authority but it may do so in such form as it thinks fit.

(4) By 31st July 2009 and 31st July 2010 the Authority must submit to the Secretary of State a report setting out in respect of the year ending on the preceding 31st March the progress made—

(a) by each supplier towards complying with the supplier’s—

(i) carbon emissions reduction obligation;

(ii) priority group obligation;

and

(b) towards achieving the overall carbon emissions reduction target.