Explanatory note

These Regulations are made under Part 2, Chapter 6 of the Energy Act 2013 (c.32). They amend in various respects the Power Purchase Agreement Scheme Regulations 2014 (S.I. 2014/2511) (“the Principal Regulations”).

The Principal Regulations apply to Great Britain and make provision for or in connection with a scheme to promote the availability to electricity generators of power purchase agreements. Agreements entered into under the scheme are referred to in the Principal Regulations as BPPAs (“backstop power purchase agreements”).

Regulation 3 amends regulation 5 of the Principal Regulations to clarify that the Gas and Electricity Markets Authority (“the Authority”) will not make an assessment of any project information submitted by a person who operates or participates in the operation of a generating station (“an electricity generator”) seeking to enter into a BPPA within the period of two days which starts on the day following the day on which the Authority receives an expression of interest stating that the electricity generator is seeking to enter into one or more BPPAs in respect of a generating station (“an expression of interest”).

Regulation 4 amends regulation 6(6)(a) of the Principal Regulations to clarify the circumstances when the Authority will determine that an electricity generator has not met the eligibility requirements to enter into a BPPA.

Regulation 5 amends regulation 16 of the Principal Regulations to clarify that the Authority must establish and maintain records when an electricity generator fails to meet the eligibility requirements set out under the amended regulation 6(6)(a) of the Principal Regulations.

Regulations 6 and 7 amend regulations 17 and 19 of the Principal Regulations to align the terminology with regulation 15 of the Principal Regulations and ensure that there is consistency between the information provided to the Authority and the information that the Authority uses to meet its reporting obligations and on which it bases its calculations in respect of the levelisation process.

Regulations 8 and 9 amend regulations 21 and 27 of the Principal Regulations to correct typographical errors.

Regulation 10 amends Part 1 of the Schedule to the Principal Regulations to clarify that if the Authority receives an updated version of the project information from an electricity generator in whose case the Authority’s determination is that the eligibility requirements are met (“an eligible generator”) the Authority must send a notice (“a revised OLR notice”) to all persons who hold an electricity supply licence under section 6 of the Electricity Act 1989 (“licensed suppliers”). If the Authority receives the updated project information from an eligible generator in the first 2 days of the 10 day period specified in paragraph 2 of the Schedule to the Principal Regulations, the Authority must send a revised OLR notice to all licensed suppliers and state that the date on which the auction closes is unchanged.

Regulation 11 amends Part 2 of the Schedule to the Principal Regulations to clarify that the Authority must not take account of any bid made by a licensed supplier which was submitted before a revised OLR notice was issued.

A full impact assessment of the effect that this instrument will have on the costs of business and the voluntary sector was published with the Explanatory Memorandum to the Principal Regulations on www.legislation.gov.uk and is available from the Department of Energy and Climate Change at 3, Whitehall Place, London, SW1A 2AW.