Energy (Amendment) Order (Northern Ireland) 2004

Explanatory Note

(This note is not part of the Order.)

This Order amends Articles 52 to 55 of the Energy (Northern Ireland) Order 2003 (S.I. 2003 419 (N.I. 6)) to take account of amendments made to sections 32 to 32C of the Electricity Act 1989 (1989 c. 29) by the Energy Act 2004 (2004 c. 20).

Article 52 of the Energy (Northern Ireland) Order 2003 (“the Energy Order”) enables the Department of Enterprise, Trade and Investment (“the Department”) by order (“a renewables order”) to impose on each electricity supplier who falls within a specified description, an obligation to provide the Northern Ireland Authority for Energy Regulation (“the Authority”) before one or more days specified in the renewables order evidence regarding the supply of electricity generated from renewable sources (“the renewables obligation”). The effect of Article 3(a) of this Order is to make clear that the Department may provide in a renewables order for more than one specified day in a year. Article 3(b) inserts into the Energy Order definitions of “Great Britain authority” and “Great Britain supplier” for the purposes of Article 52 to 55 of that Order.

Article 4 of this Order amends Article 53 of the Energy Order by providing that the condition that electricity suppliers must not be unduly disadvantaged in competing with other electricity suppliers by differential provision in a renewables order now covers Great Britain suppliers.

Article 5 of this Order provides that a renewables order may empower the Authority to issue certificates under Article 54 of the Energy Order to Great Britain electricity suppliers as well as to Northern Ireland electricity suppliers and the operators of generating stations in Northern Ireland. Such certificates will be used as evidence that an electricity supplier has discharged its renewables obligation either in Great Britain or in Northern Ireland.

Article 6 of this Order provides that a renewables order may provide for a Northern Ireland electricity supplier to discharge its renewables obligation in Northern Ireland by producing a certificate issued under a Great Britain renewables order.

Article 55 of the Energy Order provides that a renewables order may allow an electricity supplier to discharge its renewables obligation by making a buy-out payment to the Authority instead of producing evidence regarding the supply of electricity generated from renewable sources. Article 7 of this Order amends Article 55 of the Energy Order and provides for a renewables order –

(a) to provide for a supplier who has not discharged its renewables obligation by the specified date, to be treated as having discharged it by making a late buy-out payment;

(b) to provide for surcharges which will be added to any late buy-out payment;

(c) to specify steps under Article 45 of the Energy Order (financial penalties) which cannot be taken during a specified period following the date on which the supplier should have complied with its renewables obligation;

(d) to provide for electricity suppliers to make payments to the Authority to make good a shortfall in buy-out payments and late buy-out payments either in Northern Ireland or Great Britain; and

(e) to provide for Great Britain suppliers to participate in the redistribution of buy-out payments and late buy-out payments made by Northern Ireland suppliers.

Provision made in this Order in relation to Great Britain suppliers, Great Britain certificates and Great Britain payments reciprocate provision made in Chapter 4 of Part 2 of the Energy Act 2004 in relation to Northern Ireland suppliers, Northern Ireland certificates and Northern Ireland payments.