The Renewables Obligation (Scotland) Amendment Order 2017

EXPLANATORY NOTE

(This note is not part of the Order)

This Order amends the Renewables Obligation (Scotland) Order 2009 (“the principal Order”). The principal Order imposes an obligation (“the renewables obligation”) on electricity suppliers to produce a certain number of renewables obligation certificates in respect of the electricity they supply to customers in Scotland during an “obligation period”.

Article 3 inserts new definitions into article 2 of the principal Order, including a definition of “EII excluded electricity”, which comprises electricity supplied to certain industrial users of electricity.

Article 4 amends article 5 of the principal Order, which imposes the renewables obligation.

Articles 5 to 7 make a number of minor amendments to the principal Order.

Article 8 amends article 12 of the principal Order to take account of the insertion of new articles 12A and 12B. Article 12 of the principal Order sets out how the number of renewables obligation certificates to be produced by a supplier in order to discharge its renewables obligation is to be determined.

Article 9 inserts a new article 12A into the principal Order. It contains a calculation for determining, in respect of obligation periods beginning on or after 1st April 2019, the number of renewables obligation certificates to be produced by a supplier. EII excluded electricity is excluded from the calculation.

Article 9 also inserts a new article 12B into the principal Order which contains special arrangements for obligation periods in respect of which new article 12A does not apply. It contains a calculation for determining, in respect of the 2017/18 obligation period and the 2018/19 obligation period, the number of renewables obligation certificates to be produced by suppliers to discharge their renewables obligation. EII excluded electricity is excluded from the calculation.

Article 10 amends article 53(5) of the principal Order to require information regarding the supply of EII excluded electricity to customers in Scotland to be provided to Ofgem.

Articles 11 makes a minor amendment to the principal Order and article 12 makes a minor amendment to the Renewables Obligation (Scotland) Amendment Order 2015.

A full business and regulatory impact assessment of the effect this Order will have on the costs of business and the voluntary sector is available from the Scottish Government Energy Markets Unit, Directorate for Energy and Climate Change, 5 Atlantic Quay, 150 Broomlielaw, Glasgow, G2 8LU.