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Energy Act 2008

New section 32A

118.New section 32A enables an order to specify how the level of the obligation is to be set. In particular, the order will:

  • specify how the number of ROCs which an electricity supplier must produce to the Authority for a given period is to be calculated;

  • allow scope to provide that ROCs issued in respect of electricity generated from different renewable sources or different types of generating station can only be used to discharge the obligation up to a certain number or a certain proportion of a supplier’s obligation (this allows for a cap on the contribution made by particular technologies such as co-firing of biomass by coal-fired power stations);

  • determine how the amount of electricity supplied by electricity suppliers to customers is to be calculated. The size of a supplier’s individual obligation is generally based on its electricity sales.

119.Subsection (3) provides that suppliers cannot produce the same ROC more than once as evidence of complying with the obligation.

120.Subsection (6) provides, among other things, for the order to enable suppliers to ‘bank’ a specified number of ROCs acquired during a current obligation period which can then be presented to the Authority in a later obligation period. This power is to allow suppliers to hold over ROCs where, for example, for business process reasons they do not manage to present ROCs by the due date or if they have more ROCs than they need to meet their obligation for a given period. The order can specify the proportion or numbers of ROCs that may be held back for any period.

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