The Renewables Obligation Order 2009

Payments to be made by suppliers towards the total mutualisation sum

49.—(1) Where a relevant shortfall has occurred in relation to the relevant period, as soon as reasonably practicable after the 31st October in the settlement period the Authority must notify each relevant supplier of—

(a) the amount of the shortfall;

(b) the total mutualisation sum; and

(c) the payment which that supplier is required to make under paragraph (3).

(2) Where the Authority notifies relevant suppliers under paragraph (1) it must publish a notice stating the amount of the shortfall in relation to the relevant period and the total mutualisation sum.

(3) Where a relevant shortfall has occurred in relation to the relevant period, each relevant supplier must make a payment to the Authority (a “supplier payment”).

(4) The supplier payment for each relevant supplier is equal to where—

(a) T is the total mutualisation sum;

(b) C is the number of renewables obligation certificates that the supplier, if it had made no payments under article 43 or 44, would have had to produce to the Authority in order for it to have discharged its renewables obligation for the relevant period in full;

(c) D is the total number of renewables obligation certificates that all relevant suppliers, if none of them had made payments under articles 43 or 44 would have had to produce in order for each of them to discharge their renewables obligation for the relevant period in full.

(5) Subject to article 50 each relevant supplier must make its supplier payment in the following instalments (“instalment payments”)—

(a) 25 per cent of the supplier payment required must be paid to the Authority before 1st September in the mutualisation period;

(b) 25 per cent of the supplier payment must be paid to the Authority before 1st December in that period;

(c) 25 per cent of the supplier payment must be paid to the Authority before 1st March in that period; and

(d) 25 per cent of the supplier payment must be paid to the Authority before 1st June immediately following that period.

(6) Where a person required to make a supplier payment—

(a) fails to make payment in full, and

(b) at any time during or after the end of the relevant period ceases to hold a licence to supply electricity under section 6(1) of the Act(1),

sections 25 to 28 of the Act(2) are to apply in respect of that person in respect of the obligations imposed by this article, as if that person still held a licence to supply electricity.

(1)

Section 6 of the Act was substituted by section 30 of the Utilities Act 2000 (c.27).

(2)

Section 25 of the Act was amended by section 54(3) of, and paragraph 12 of Part IV of Schedule 10 to, the Competition Act 1998 (c.41), sections 3(2), 60 and 108 of, and paragraphs 24, 27 and 28 of Part II of Schedule 6 to, the Utilities Act 2000 (c.27), sections 25(8), 45(4), 52(2) and 63(1) of, and paragraph 2 of Schedule 2, paragraph 2 of Schedule 5 and paragraphs 7 and 9 of Schedule 7 to, the Consumers, Estate Agents and Redress Act 2007 (c.17), section 107(1) of, and paragraph 3 of Schedule 5 to, the Energy Act 2008 (c.32). Section 26 of the Act was amended by sections 3(2), 60(1) and 60(6) of the Utilities Act 2000. Section 27 of the Act was amended by section 3(2) of the Utilities Act 2000. Sections 27A to 27F of the Act were inserted by section 59(1) of the Utilities Act 2000. Section 28 of the Act was amended by sections 3(2), 59(2) and 108 of, and paragraphs 24 and 29 of Part II of Schedule 6 to, the Utilities Act 2000.