The Electricity and Gas (Energy Companies Obligation) (Amendment) (No. 2) Order 2014

Determining a supplier’s reduced phase 3 carbon emissions reduction obligation8A

1

Where the Administrator has notified a supplier under article 8 that it has an obligation of more than zero for phase 3 of the carbon emissions reduction obligation, the Administrator must determine the supplier’s reduced phase 3 carbon emissions reduction obligation.

2

The Administrator must make the determination in accordance with article 8(3), but as if, in the table in article 9, the value of “A” for phase 3 of the carbon emissions reduction obligation were 1.46 MtCO₂.

3

The Administrator must notify the supplier of the supplier’s reduced phase 3 carbon emissions reduction obligation by no later than the twentieth working day after the second amending Order comes into force.

Determining the qualifying CERO achievement for a supplier which is not a group company19A

1

This article applies to a supplier (“S”) which is not a group company on 30th April 2015.

2

The Administrator must calculate S’s qualifying CERO achievement in accordance with paragraph (4).

3

The calculation in paragraph (2) must be carried out—

a

if by 30th April 2015 S has not made an application under article 20, after 30th April 2015;

b

if by 30th April 2015 S has made one or more applications under article 20, after the Administrator has decided whether to approve, or not to approve, those applications.

4

S’s qualifying CERO achievement is—

$$\text{B}-\text{C}$$

where—

1. a

   “B” is the sum total of the relevant carbon savings for eligible CERO actions; and

2. b

   “C” is 35% of the sum total of carbon emissions reduction obligations which have been determined for S in respect of phases 1 and 2.

5

The Administrator must notify S of its qualifying CERO achievement.

6

In this article—

• “eligible CERO action” means a carbon qualifying action—

  1. a

     which falls within article 12(4)(a) or (b);

  2. b

     installation of which was carried out before 1st April 2014; and

  3. c

     which is credited against S’s total carbon emissions reduction obligation;

• “relevant carbon saving”, in relation to an eligible CERO action, means the carbon saving which the Administrator has attributed to that action under article 19.

Attributing an uplift to certain eligible CERO actions19B

1

This article applies where the Administrator has notified S that it has a qualifying CERO achievement that is greater than zero.

2

S may, by no later than fifteen working days after the Administrator has notified S of its qualifying CERO achievement, nominate to the Administrator eligible CERO actions which have relevant carbon savings which, in sum total, do not exceed S’s qualifying CERO achievement, which it wishes to be attributed with an uplift.

3

If S does not make a nomination under paragraph (2), the Administrator must determine which eligible CERO actions are to be attributed with an uplift, selecting the most recently installed eligible CERO actions which have relevant carbon savings which, in sum total, do not exceed S’s qualifying CERO achievement.

4

The Administrator must attribute an uplift, in lifetime tonnes of carbon dioxide, calculated in accordance with paragraph (5), to eligible CERO actions which—

a

are nominated or selected in accordance with paragraph (2) or (3), as applicable; and

b

the relevant carbon savings of which, in sum total, do not exceed S’s qualifying CERO achievement.

5

The uplift to be attributed to an eligible CERO action under paragraph (4) is—

$$\text{A}\times \text{0}\text{.75}$$

• where “A” is the relevant carbon saving for that action.

6

The contribution that an eligible CERO action makes towards S’s total carbon emissions reduction obligation is the sum total of—

a

the relevant carbon saving for that action; and

b

the uplift, if any, calculated for that action under paragraph (5).

7

The Administrator must notify S, by no later than 30th September 2015, of—

a

the eligible CERO actions which have been attributed with an uplift under paragraph (4); and

b

the contribution that each eligible CERO action identified under sub-paragraph (a) has made towards S’s total carbon emissions reduction obligation.

8

In this article—

• “eligible CERO action” has the meaning given in article 19A;

• “qualifying CERO achievement”, in relation to S, is the amount calculated for S under article 19A(4);

• “relevant carbon saving” has the meaning given in article 19A;

• “S” has the meaning given in article 19A.

Determining the group qualifying CERO achievement for suppliers which are members of a group of companies19C

1

This article applies to suppliers which are members of a group of companies on 30th April 2015.

2

The Administrator must calculate the group of companies’ (“G’s”) group qualifying CERO achievement in accordance with paragraph (4).

3

The calculation in paragraph (4) must be carried out—

a

if by 30th April 2015 no relevant transfer application has been made, after 30th April 2015;

b

if by 30th April 2015 one or more relevant transfer applications have been made, after the Administrator has decided whether to approve, or not to approve, those applications.

4

G’s group qualifying CERO achievement is—

$$\text{B}-\text{C}$$

where—

1. a

   “B” is the sum total of the relevant carbon savings for eligible group CERO actions; and

2. b

   “C” is equal to 35% of the sum total of the carbon emissions reduction obligations which have been determined for suppliers which are members of G in respect of phases 1 and 2.

5

The Administrator must notify the suppliers which are members of G of G’s group qualifying CERO achievement.

6

In this article—

• “eligible group CERO action” means a carbon qualifying action—

  1. a

     which falls within article 12(4)(a) or (b);

  2. b

     installation of which was carried out before 1st April 2014; and

  3. c

     which is credited against the total carbon emissions reduction obligation of a supplier which is a member of G;

• “relevant carbon saving”, in relation to an eligible group CERO action, means the carbon saving which the Administrator has attributed to that action under article 19;

• “relevant transfer application” means an application which is made by a supplier which is a member of G under article 20.

Attributing an uplift to certain eligible group CERO actions19D

1

This article applies where the Administrator has notified suppliers which are members of G that G has a group qualifying CERO achievement which is greater than zero.

2

One or more suppliers which are members of G may, by no later than fifteen working days after the date on which all suppliers which are members of G have been notified by the Administrator of their qualifying CERO achievement, nominate to the Administrator eligible group CERO actions, with relevant carbon savings which in sum total do not exceed G’s group qualifying CERO achievement, which they wish to be attributed with an uplift.

3

Only one nomination may be made in respect of G under paragraph (2).

4

If no nomination is made under paragraph (2), the Administrator must determine which eligible group CERO actions are to be attributed with an uplift, selecting the most recently installed eligible group CERO actions which have relevant carbon savings which, in sum total, do not exceed G’s qualifying CERO achievement.

5

The Administrator must attribute an uplift, in lifetime tonnes of carbon dioxide, calculated in accordance with paragraph (6), to eligible group CERO actions which—

a

are nominated or selected in accordance with paragraph (2) or (4), as applicable; and

b

the relevant carbon savings of which, in sum total, do not exceed G’s group qualifying CERO achievement.

6

The uplift to be attributed to an eligible group CERO action under paragraph (5) is—

$$\text{A}\times \text{0}\text{.75}$$

• where “A” is the relevant carbon saving for that action.

7

The contribution that an eligible group CERO action makes towards a supplier’s total carbon emissions reduction obligation is the sum total of—

a

the relevant carbon saving for that action; and

b

the uplift, if any, calculated for that action under paragraph (6).

8

The Administrator must notify the suppliers which are members of G, by no later than 30th September 2015, of—

a

the eligible group CERO actions which have been attributed with an uplift under paragraph (5); and

b

the contribution that each eligible group CERO action identified under sub-paragraph (a) has made towards a supplier’s total carbon emissions reduction obligation.

9

In this article—

• “eligible group CERO action” has the meaning given in article 19C;

• “G” has the meaning given in article 19C;

• “qualifying group CERO achievement”, in relation to G, is the amount calculated for G under article 19C(4);

• “relevant carbon saving” has the meaning given in article 19C.

9

Subject to paragraph (9A), the Administrator must approve the application if it is satisfied that the measure to which the application relates is an excess action.

9A

The Administrator must not approve an application in respect of a measure which was approved and installed under the 2008 Order if it has received an application under article 21ZA from—

a

the supplier (“A”); or

b

a supplier who was a member of the same group of companies as A on 31st December 2012.

9B

An excess action which is credited against a supplier’s total carbon saving community obligation may be credited against the supplier’s rural requirement if the Administrator is satisfied that the excess action was promoted to a member of the super priority group living in a rural area.

Group application for reallocation and carry forward of excess CERT actions21ZA

1

Two or more suppliers (“applicant suppliers”) who were members of the same group of companies (“G”) on 31st December 2012 may apply to the Administrator to approve—

a

one or more relevant CERT actions as group excess actions; and

b

as a credit towards a relevant obligation of an applicant supplier the carbon or cost saving achieved by a group excess action.

2

A relevant CERT action is a group excess action if—

a

that relevant CERT action was achieved by a relevant company; and

b

had CERT actions been reallocated between the relevant companies in the manner described in the application under paragraph (1), that action would not have been required for all the relevant companies to have met their CERT obligations.

3

No credit of a group excess action may be approved by the Administrator towards a supplier’s—

a

total carbon emissions reduction obligation, unless the group excess action was—

i

installed to a member of the super priority group; or

ii

solid wall insulation installed to a domestic energy user;

b

total carbon saving community obligation, unless the group excess action was promoted and installed in an area of low income;

c

total home heating cost reduction obligation, unless the group excess action was promoted and installed to a householder who was a member of the super priority group.

4

An application under paragraph (1) must—

a

be made no later than ten working days after the second amending Order comes into force;

b

describe the reallocation of CERT actions between the relevant companies;

c

identify the relevant CERT actions which are considered group excess actions; and

d

state, in respect of each such group excess action—

i

to which applicant supplier; and

ii

to which of that supplier’s relevant obligations,

the carbon or cost saving of that action is to be credited.

5

Subject to paragraph (3), the Administrator must approve the credit of group excess actions as set out in an application if it is satisfied that—

a

those actions are group excess actions; and

b

each relevant company consents to the credit.

6

A group excess action which is credited against a supplier’s total carbon saving community obligation may be credited against the supplier’s rural requirement if the Administrator is satisfied that the group excess action was promoted to a member of the super priority group living in a rural area.

7

Only one application may be made under paragraph (1) in respect of G.

8

No application may be made under paragraph (1) where the Administrator has approved an application which was made under article 21—

a

by a supplier which was a member of G on 31st December 2012; and

b

in respect of a CERT action.

9

In this article—

• “2008 Order” means the Electricity and Gas (Carbon Emissions Reduction) Order 20089;

• “carbon saving”, in relation to a CERT action identified under paragraph (4)(c), has the same meaning as that given in relation to excess actions in article 21(10);

• “CERT action” means a measure which was installed and approved under the 2008 Order;

• “CERT obligations” means the following obligations under the 2008 Order—

  1. a

     carbon emissions reduction obligation;

  2. b

     insulation obligation;

  3. c

     priority group obligation; and

  4. d

     super priority group obligation;

• “cost saving”, in relation to a CERT action identified under paragraph (4)(c), has the same meaning as that given in relation to excess actions in article 21(10);

• “relevant CERT action” means a CERT action which—

  1. a

     was installed after 1st January 2012; and

  2. b

     if installed between 1st October 2012 and 31st December 2012, was installed by a person of appropriate skill and experience and in accordance with the Publicly Available Specification where the installation is referred to in the Specification;

• “relevant company” means a company which was—

  1. a

     a member of G on 31st December 2012; and

  2. b

     notified by the Administrator of a carbon emissions reduction obligation under the 2008 Order;

• “relevant obligation” means a supplier’s—

  1. a

     total carbon emissions reduction obligation;

  2. b

     total carbon saving community obligation; or

  3. c

     total home heating cost reduction target;

• “super priority group” has the same meaning as in the 2008 Order.