Regulation 9 Restriction of entry to the scheme

After regulation 51 insert—

“PART 10A
Restriction of entry to the scheme

Circumstances in which entry to the scheme is restricted

51A.

(1)
Subject to paragraph (5), the Secretary of State must determine the forecast for total expenditure and publish that forecast on the website for the Department of Energy and Climate Change in accordance with paragraphs (2) and (3).

(2)
The forecast must be published for the first time within the period of a week commencing on the relevant date.

(3)
Subject to paragraph (5), the Secretary of State must revise the forecast each week with each revised forecast being published within the period of a week commencing from the date on which the previous forecast was published.

(4)
The Secretary of State must notify the Authority in writing when the forecast for total expenditure reaches £67.9 million.

(5)
Paragraphs (1) and (3) cease to have effect once the notification required by paragraph (4) has been made.

(6)
On receipt of such a notification, the Authority must, as soon as is reasonably practicable, publish a notice (“notice of restriction”) on its website.

(7)
The notice of restriction must—

(a)
be first published on a working day;

(b)
specify the date on which it is first published;

(c)
specify the dates with which the period of suspension will commence and end;

(d)
explain that entry to the scheme will be suspended in accordance with paragraphs (10) to (12);

(e)
specify the dates with which the period of restriction will commence and end;

(f)
explain that during the period of restriction, the restrictions on accreditation and registration set out in paragraphs (6) and (7) of regulation 23 and paragraphs (8) and (9) of regulation 25 will apply; and

(g)
explain the effect of the periods of suspension and restriction.

(8)
On the first day of the period of suspension, the Authority must publish a notice (“notice of suspension”) on its website.

(9)
The notice of suspension must—

(a)
specify the date on which it is first published;

(b)
include the information specified in paragraph (7)(c) and (d); and

(c)
explain the effect of the period of suspension.

(10)
Subject to paragraph (11), no applications for accreditation (including applications for accreditation of additional RHI capacity pursuant to regulation 43(5)) or applications for registration pursuant to regulation 25 may be made during the period of suspension.

(11)
Paragraph (10) does not apply in relation to an application for accreditation of an eligible installation where—

(a)
an application for preliminary accreditation pursuant to regulation 26 was made in respect of the eligible installation before the relevant date;

(b)
the eligible installation has been granted preliminary accreditation; and

(c)
that accreditation has not been withdrawn.

(12)
No applications for preliminary accreditation may be made during the period of suspension.

(13)
The Secretary of State must publish the detailed methodology used to calculate the forecasts published in accordance with paragraphs (1) to (3).

Interpretation

51B.

For the purposes of this Part—

“average load factor” means—

(a)

in respect of a relevant installation (except a relevant installation within paragraph (c)) which is or is expected to be—
(i)

receiving the medium commercial or large commercial biomass tariff; and

(ii)

generating heat for the purposes of carrying out a process,

the average of the estimated hours of operation per week for eligible purposes of all such installations divided by the total number of hours in a week;

(b)

in respect of a relevant installation (except a relevant installation within paragraph (a)) receiving or expected to receive a tariff which fewer than 20 accredited RHI installations providing metering data are receiving, the average load factor of all accredited RHI installations;

(c)

in respect of a relevant installation receiving or expected to receive a tariff which 20 or more accredited RHI installations providing metering data are receiving, the average load factor of those accredited RHI installations;

“biomethane forecast” means the sum of estimated periodic support payments payable to each participant producing biomethane for injection in the relevant period, taking into account a participant’s current or expected flow rate, the expected date of commencement of injection (if this is not already taking place) and other relevant information provided on registration;

“estimated heat” means in relation to a relevant installation—

LF × T × C, where—

LF is the average load factor for the tariff which that installation is receiving or is expected to receive having taken into account seasonality variations for heating a space and heating water,

T (in respect of an accredited RHI installation) is the number of hours between the last quarter in respect of which a periodic support payment has been paid and the end of the relevant period, or (in respect of all other relevant installations) is the number of hours between the expected date of accreditation and the end of the relevant period,

C is the installation capacity of that relevant installation;

“estimated spend”, in relation to a relevant installation, means the estimated heat for that installation multiplied by the relevant tariff;

“forecast for total expenditure” means the sum of the estimated spend for each relevant installation, the spend to date and the biomethane forecast;

“load factor” in respect of an accredited RHI installation means—

$\frac{M}{C x H}$ , where—

M is, the average amount of heat in kWhth generated by an installation in a quarterly period which is eligible to receive periodic support payments,

C is the capacity of that accredited installation,

H is the average number of hours in a quarterly period;

“period of restriction” means the week commencing with the date on which a notice of restriction is first published;

“period of suspension” means the period commencing with the first day after the period of restriction has ended, and ending with 31st March 2013;

“relevant date” has the meaning given in regulation 23(8);

“relevant installation” means an accredited RHI installation or an installation for which an application for accreditation or preliminary accreditation has been made;

“relevant period” means the period commencing with 1st April 2012 and ending with 31st March 2013;

“seasonality” means the assumed impact on the load factor of seasonal temperatures, calculated from the UK’s non-domestic gas consumption in a quarterly period divided by the UK non-domestic gas consumption for the year in which that quarterly period falls averaged for each quarterly period using data from the previous 14 years;

“spend to date”, in relation to the date on which the calculation of a forecast published under paragraphs (1) to (3) of regulation 51A is made, means the sum of periodic support payments paid prior that date to participants in the relevant period;

“working day” means any day other than—

(a)

a Saturday, Sunday, Good Friday, or Christmas Day; or

(b)

a day which is a bank holiday in England, Wales or Scotland.”