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) and paragraph (5) of article 14, the payment to be made under paragraph (1) is £30 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 (“the buy-out price”).
(3) If, in the case of the calendar year 2002 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 (any exact half of a penny being rounded upwards).
(5) In this article “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.