The Renewables Obligation (Amendment) Order 2021

CitationSI 2021/415
JurisdictionUK Non-devolved

2021No. 415

ELECTRICITY, ENGLAND AND WALES

The Renewables Obligation (Amendment) Order 2021

Made25thMarch2021

Coming into force31stMarch2021

The Secretary of State, in exercise of the powers conferred by sections 32, 32A, 32G and 32K of the Electricity Act 1989( 1), makes the following Order.

The Secretary of State consulted the Gas and Electricity Markets Authority, the National Association of Citizens Advice Bureaux, the Scottish Association of Citizens Advice Bureaux, the electricity suppliers to whom this Order applies and such generators of electricity from renewable sources and other persons as the Secretary of State considered appropriate in accordance with section 32L(1) of the Electricity Act 1989.

In accordance with section 32L(2) of the Electricity Act 1989, a draft of this instrument was laid before Parliament and approved by a resolution of each House of Parliament.

Citation, commencement and extent

1.—(1) This Order may be cited as the Renewables Obligation (Amendment) Order 2021 and comes into force on 31st March 2021.

(2) This Order extends to England and Wales only.

Amendment of the Renewables Obligation Order 2015

2. The Renewables Obligation Order 2015( 2) is amended in accordance with articles 3 and 4.

Amendment to article 72 (determining whether a relevant shortfall has occurred)

3.—(1) Article 72 is amended as follows.

(2) For paragraph (3), substitute—

“(3) A shortfall in relation to a relevant period is a relevant shortfall if it is equal to, or in excess of, the mutualisation threshold for that period.”.

(3) After paragraph (3), insert—

“(4) The mutualisation threshold for a relevant period is determined as 1% of A x B, rounded to the nearest £100,000 with £50,000 being rounded upwards, where—

(i) A is the total obligation for the relevant period determined under article 12;

(ii) B is the buy-out price for the relevant period referred to in article 67(4).”.

Amendment to article 86 (functions of the Authority)

4.—(1) Article 86 is amended as follows.

(2) After paragraph (1)(d), insert—

“(da) calculating and publishing the mutualisation threshold (referred to in article 72(4)) for each obligation period—

(i) in the case of the obligation period beginning on 1st April 2021, as soon as reasonably practicable after the date on which the Renewables Obligation (Amendment) Order 2021 comes into force;

(ii) in the case of any subsequent obligation period, before the start of that obligation period;”.

25th March 2021

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