The Renewable Transport Fuel Obligations Order 2007

Payments

21.—(1) As soon as reasonably practicable after the end of an obligation period, the Administrator must notify each obligated supplier of the following—

(a) the amount of renewable transport fuel which the Administrator calculates should, in accordance with section 124(2)(b) of the 2004 Act and article 4(4), have been supplied at or for delivery to places in the United Kingdom during that obligation period, and

(b) the number of RTF certificates being held to the credit of the supplier’s RTF account which may be used as evidence for the purposes of meeting the supplier’s renewable transport fuel obligation.

(2) A certificate may be produced as evidence by the supplier pursuant to this Order—

(a) by means of an electronic submission transmitted to a website of the Administrator, which identifies the credit of a certificate in the supplier’s RTF account, or

(b) by other means, in a case where the Administrator determines that it is necessary to allow production of an RTF certificate by those means.

(3) A supplier must notify the Administrator of the number of RTF certificates held in the supplier’s RTF account which are to be counted towards the discharge of the supplier’s renewable transport fuel obligation for the obligation period in question, and which are to be debited accordingly from the RTF account.

(4) That notification must be given to the Administrator by the specified date referred to in article 4(3)(b).

(5) Where a supplier fails to notify the Administrator of the number of RTF certificates to be counted by the date mentioned in paragraph (4), the Administrator must deem the number to be nil.

(6) A supplier who does not wholly discharge the renewable transport fuel obligation for an obligation period by the production of evidence in accordance with paragraph (2) by the specified date referred to in article 4(3)(b) must pay to the Administrator a sum determined in accordance with paragraph (7).

(7) That sum is determined as follows.

• Step 1

• Calculate in litres the amount of renewable transport fuel for which the supplier was obligated to produce evidence during the obligation period in question, pursuant to section 124(2) of the 2004 Act and article 4 (“the obligated amount”).

• Step 2

• Calculate in litres the amount of renewable transport fuel which should have been supplied during the obligation period in question, and for which the supplier has produced RTF certificates as evidence in accordance with paragraph (2) (“the actual amount”).

• Step 3

• Calculate the number of litres by which the actual amount falls short of the obligated amount (“the shortfall amount”).

• Step 4

• Subtract the amount of money referred to in the section of the 1979 Act containing the rate of duty for bioethanol(1) from the amount of money referred in the section of that Act containing the rate of duty for sulphur-free petrol(2), as those provisions have effect at the beginning of the obligation period. The amount given by this step is the “duty derogation amount”.

• Step 5

• In respect of the obligation period beginning on 15th April 2008 or 15th April 2009, subtract the duty derogation amount from £0.35. In respect of each subsequent obligation period, subtract the duty derogation amount from £0.30. The amount given by this step is the “buy-out price”.

• Step 6

• Multiply the shortfall amount by the buy-out price. The amount given by this step is the sum which the supplier is to pay to the Administrator under paragraph (6).

(8) For the purposes of section 128(1), the period within which the sum must be paid to the Administrator (“the buy-out payment period”) is the period beginning on the 15th April immediately following the obligation period in question and ending on 5th November in the same year.

(9) Where a supplier does not pay all or any part of the sum to the Administrator by the end of the buy-out payment period—

(a) the sum outstanding is to increase at the rate specified in paragraph (10) and the increase is to be calculated in accordance with paragraph (11), and

(b) the increased sum is a debt due from the supplier to the Administrator until it has been paid in full.

(10) The rate for the purpose of paragraph (9)(a) is 5 percentage points above the base rate of the Bank of England as at the 6th November immediately following the buy-out payment period in question.

(11) The increase is to be calculated on a daily basis beginning on the 6th November immediately following the buy-out payment period in question, and ending on the date on which payment is received by the Administrator.

(1)

The rate of duty for bioethanol is contained in section 6AD(3) of the 1979 Act, as inserted by the Finance Act 2004 (c.12), section 10(3), and amended by the Finance Act 2007 (c.11), section 10(1) and (4).

(2)

The rate of duty for sulphur-free petrol is contained in section 6(1A)(aa) of the 1979 Act, as inserted by the Finance Act 2004, section 7(5)(a), and amended by the Finance Act 2007, section 10(1) and (2)(b).