The Authority shall pay out the tidal buy-out fund, by the 1st November immediately following the relevant obligation period in accordance with the system of allocation specified in paragraphs (2) to (4).

The tidal buy-out fund relating to a relevant obligation period shall be divided amongst the designated electricity suppliers who meet the condition referred to in paragraph (3) so that each such supplier receives a proportion of the tidal buy-out fund calculated in accordance with paragraph (4).

The condition for a designated electricity supplier is that, in respect of the relevant obligation period, it has produced certificates to the Authority in compliance with its renewables obligation which meet (in whole or in part) the minimum tidal requirement.

The proportion of the tidal buy-out fund which each designated electricity supplier is entitled to receive under paragraph (2) is equal to the proportion which the amount of electricity covered by all of the certificates it has produced as mentioned in paragraph (3) up to a maximum amount equal to the supplier’s minimum tidal requirement bears to the total amount of electricity covered by all such certificates produced to the Authority in respect of the relevant obligation period.

If, in the relevant obligation period, there are no designated electricity suppliers who meet the condition referred to in paragraph (3), the Authority shall refund payments made under article 11(6) net of the buy-out price under article 11(2).