EXPLANATORY NOTE

(This note is not part of the Order)

These Regulations implement as respects Northern Ireland Article 5 of the Directive 2004/8/EC (OJ L 52, 21.2.2004, p.50) of the European Parliament and of the council on the promotion of cogeneration based on a useful heat demand in the internal energy market and amending Directive 92/42/EEC (OJ L 167, 22.6.1992, p.17). That article provides for the issue of guarantees of origin of electricity from high-efficiency cogeneration. The cogeneration of electricity is more commonly referred to in the United Kingdom as electricity produced from combined heat and power or CHP.

Regulation 3 provides that the Department of Enterprise, Trade and Investment, as the competent authority, is the issuer of guarantees of origin of electricity produced from high-efficiency cogeneration.

Regulation 4 provides for the procedure that a producer of electricity must follow to obtain a guarantee, Schedule 1 sets out the information that a producer must provide to the competent authority. Paragraph 7 of that Schedule refers to the Combined Heat and Power Quality Assurance (CHPQA) programme. The CHPQA Standard, Issue 2, November 2007 published by the Department for Environment, Food and Rural Affairs. It may be obtained from www.chpqa.com. Or the CHPQA administrator telephone 0870 190 6196 and E-mail: chpqainfo@chpqa.com

Regulation 5 provides for the issue and content of a guarantee. Schedule 2 specifies the information to be included in a guarantee of origin.

Regulation 6 sets out when a guarantee may be replaced.

Regulation 7 provides for the transfer of a guarantee.

Regulation 8 sets out when and how a guarantee may be revoked.

Regulation 9 provides that a charge may be made for the issue or transfer of a guarantee.

Regulation 10 provides for the recognition of guarantees, including those issued by competent authorities outside Northern Ireland.