Explanatory note

This Order amends the Renewables Obligation (Scotland) Order 2009 (“the 2009 Order”).

The 2009 Order imposes an obligation (the “renewables obligation”) on all electricity suppliers which supply electricity in Scotland to produce a certain number of Scottish renewables obligation certificates in respect of electricity they supply to customers in Scotland during an “obligation period”. Each obligation period runs from 1 April to 31 March.

Article 3 amends article 2 of the 2009 Order to include a definition of “BICS excluded electricity” so that this proportion of electricity can then be excluded from a supplier’s liability under the 2009 Order. The definition of “relevant electricity” is accordingly updated. BICS excluded electricity is electricity used in respect of a manufacturing site which is used to carry out specified manufacturing activities.

Articles 4, 5, and 6 make amendments to the 2009 Order which are consequential on the amendment made by article 7. Article 7 inserts new articles 12D and 12E into the 2009 Order. New article 12D makes provision for the determination of suppliers’ renewables obligations for periods beginning on or after 1 April 2027. The formulas used to calculate suppliers’ liabilities take account of the exclusion of BICS excluded electricity. New article 12E enables the Scottish Ministers to revise the obligation level published on or before 1 October 2026 in respect of the 2027/28 obligation period. A revision may only be made once, and only before 1 April 2027.

Article 8 makes amendments to article 53(5) of the 2009 Order which have the effect that for obligation periods beginning on or after 1 April 2027, suppliers must, in addition to other information provided for in article 53, provide information to the Gas and Electricity Markets Authority in relation to EII excluded electricity (within the meaning of regulation 6(1) of the Electricity Supplier Obligations (Amendment & Excluded Electricity) Regulations 2015), and BICS excluded electricity.