Renewables Obligation Order (Northern Ireland) 2005

Explanatory Note

(This note is not part of the Order.)

This Order is made under Article 52 of the Energy (Northern Ireland) Order 2003 and imposes an obligation (“the renewables obligation”) on all electricity suppliers, who are licensed under the Electricity (Northern Ireland) Order 1992, to supply to customers in Northern Ireland specified amounts of electricity generated from renewable sources. As alternatives, in respect of all or part of an electricity supplier’s renewables obligation, an electricity supplier is permitted to provide evidence that other licensed electricity suppliers have supplied electricity generated using renewable sources instead of it or to make a payment to the Northern Ireland Authority for Energy Regulation (“the Authority”). Renewable sources include sources of energy such as wind, water, solar and biomass.

Article 3 imposes the renewables obligation on electricity suppliers. The renewables obligation requires the electricity supplier to produce evidence of the supply of electricity generated from renewable sources to the Authority. The evidence required is in the form of certificates issued by the Authority (which are referred to in the Order as “NIROCs”).

Article 4 and Schedule 2 provide for the issue of NIROCs by the Authority and the maintenance by it of a register of NIROCs.

Article 5 provides for the revocation of NIROCs in specified circumstances.

Article 6 provides for NIROCs issued in respect of electricity generated under Northern Ireland Non-Fossil Fuel Arrangements to be issued by reference to financial bids with the person making the highest bid being the person to whom the NIROCs are to be issued.

Article 7 and Schedule 2 provide for how the amount of an electricity supplier’s renewables obligation is to be determined.

Article 8 provides that, instead of producing certificates to the Authority, an electricity supplier may discharge (in whole or part) its renewables obligation by making a payment to the Authority.

Article 9 provides for suppliers to discharge their renewables obligation by tendering eligible GBROCs – ie Renewables Obligation Certificates issued by the Gas and Electricity Markets Authority (“GEMA”) under the GB Renewables Obligation Orders. Schedule 1 outlines the conditions governing GBROC eligibility.

Articles 10, 11 and 12 determine what types of electricity generated from renewable sources are eligible to satisfy an electricity supplier’s renewables obligation.

Article 14 provides for the Authority to obtain information to enable it to carry out its functions under the Order.

Article 15 provides how payments made to the Authority by electricity suppliers under Article 8 are to be divided amongst those electricity suppliers subject to the renewables obligations in Great Britain and in Northern Ireland.

Article 16 provides for the exchange of information between the Authority and the GEMA relating to GBROCs produced to the Authority under Article 9 and NIROCs produced to GEMA under the GB Renewables Obligation Orders.

Article 17 provides for an electricity supplier to be treated as having discharged its renewables obligation by making a late payment in accordance with that Article. The late payment must be made during a specified period and is subject to a surcharge which rises on a daily basis. If a supplier only makes a partial late payment the remaining part of its renewables obligation not covered by the partial late payment, remains outstanding and the supplier is still in default of its renewables obligations.

Article 18 makes provision relating to the functions of the Authority under the Order.