These Regulations implement Article 5 of Directive 2004/8/EC (OJ L 52, 21.2.2004, p.50) of the European Parliament and of the Council on the promotion of cogeneration based on a useful heat demand in the internal energy market and amending Directive 92/42/EEC (OJ L 167, 22.6.1992, p.17). That Article provides for the issue of guarantees of origin of electricity from high-efficiency cogeneration. The cogeneration of electricity is more commonly referred to in the United Kingdom as electricity produced from combined heat and power or CHP.

Regulation 3 provides that the Secretary of State for Environment, Food and Rural Affairs, as the competent authority, is the issuer of guarantees of origin of electricity produced from high-efficiency cogeneration.

Regulation 4 provides for the procedure that a producer of electricity must follow to obtain a guarantee. Schedule 1 sets out the information that a producer must provide to the competent authority. Paragraph 7 of that Schedule refers to the Combined Heat and Power Quality Assurance Standard, Issue 1, November 2000 published by the Department for Environment, Food and Rural Affairs. It may be obtained from www.defra.gov.uk/environment/energy/chp/index.htm#quality or The CHP Team, Sustainable Energy Policy, Energy Market Branch, Department for Environment, Food and Rural Affairs, Zone 3H20, Ashdown House, 123 Victoria Street, London SW1E 6DE.

Regulation 5 provides for the issue and content of a guarantee. Schedule 2 specifies the information to be included in a guarantee.

Regulation 6 sets out when a guarantee may be replaced.

Regulation 7 provides for the transfer of a guarantee.

Regulation 8 sets out when and how a guarantee may be revoked.

Regulation 9 provides that a charge may be made for the issue or transfer of a guarantee.

Regulation 10 provides for the recognition of guarantees, including those issued by competent authorities outside Great Britain.

A full Regulatory Impact Assessment of the effect that this instrument will have on the costs of business and the voluntary sector, and a transposition note, have been prepared and are available from The CHP Team at the above mentioned address. Copies have been placed in the library of each House of Parliament.