Explanatory note

This Order makes arrangements in connection with the Smart Export Guarantee (SEG), which provides for payments to be made to generators of small-scale low-carbon electricity generation. Other provisions of the SEG are contained in modifications made under section 41 of the Energy Act 2008 to the standard conditions of energy supply licences (“the SEG licence conditions”), which are available from the Department for Business, Energy and Industrial Strategy, 1 Victoria Street, London, SW1H 0ET.

Article 3 sets the specified maximum capacity for eligible installations in the SEG at 5 megawatts.

Article 4 confers specific functions on the Gas and Electricity Markets Authority (“the Authority”) where electricity is generated by way of anaerobic digestion. Where that is the case, the Authority must verify that a SEG generator has complied with the sustainability and feedstock requirements set out in the Schedule, and review its verification on a quarterly basis in relation to sustainability and on an annual basis in relation to feedstock.

Article 5 requires the Authority to issue guidance on the operation of the SEG, and to keep the guidance under review.

Article 6 requires the Authority to publish, before the start of each SEG year, except the first SEG year, a list of each licensee which has offered tariffs under the SEG, distinguishing between mandatory licensees and voluntary licensees which intend to offer tariffs under the SEG.

Article 7 requires the Authority to publish report annually, and sets out what the report must cover.

Article 8 provides that the Authority may require a SEG licensee to provide it with information which the SEG licensee holds and which the Authority believes it needs in order to fulfil its obligations under this Order.

A full impact assessment of the effect that this instrument will have on the costs of business, the voluntary sector and the public sector is available from the Department for Business, Energy and Industrial Strategy, 1 Victoria Street, London, SW1H 0ET.