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The Green Gas Support Scheme Regulations 2021

Type Statutory-Instrument

Publication 2021-11-29

Last updated 2025-11-01

State In force

Department King's Printer of Acts of Parliament

Source legislation.gov.uk

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(a) PDA is the total mutualisation amount in relation to that mutualisation process,

(b) PMPS is the sum of the meter point data for SS for each day of the quarter preceding the quarter in which the mutualisation notices were given to scheme suppliers under regulation 56,

(c) PTMPS is the sum of the meter point data, for all non-defaulting scheme suppliers apart from SS, for each day of the quarter preceding the quarter in which the mutualisation notices were given to scheme suppliers under regulation 56,

(d) meter point data, for the purposes of PMPS and PTMPS, is the meter point data as notified or determined under regulation 48.

(5) SS must pay any backdated levy payment to the Authority in accordance with the notification referred to in paragraph (2).

(6) In this regulation, “defaulting scheme supplier” and “non-defaulting scheme supplier” have the meanings given in regulation 56.

Exempt suppliers

50

(1) This regulation applies where a licensed gas supplier (“GS”) was not a provisionally exempt supplier in relation to a scheme year, and is notified in accordance with regulation 38(10)(b) that they are an exempt supplier in relation to that scheme year.

(2) The Authority must, within 30 days after the day on which that notification is given—

(a) calculate, and notify GS of, the amount of any levy refund payment to which GS is entitled in relation to that scheme year,

(b) pay the levy refund payment to GS out of funds available to it for the purposes of the Scheme,

(c) discontinue any compliance or enforcement action under Part 10 in relation to any breach of these Regulations by GS, other than a breach of regulation 38(3) (notification that a supplier is likely to be an exempt supplier) or regulations 46 to 48 (additional obligations on scheme suppliers), which occurred in relation to that scheme year.

(3) The levy refund payment in relation to a scheme year must be calculated by the Authority as follows—

where—

(a) RP is the amount of the levy refund payment in relation to that scheme year,

(b) Q is the sum of any quarterly levy payments paid by GS to the Authority in relation to that scheme year in accordance with regulation 40,

(i) the sum of any levy credit payments paid by GS to the Authority in relation to that scheme year in accordance with regulation 42, and

(ii) the amount by which GS’s existing credit cover exceeds their credit cover requirement for the quarter in which the levy refund payment is made,

(d) M is the sum of any mutualisation payments paid by GS to the Authority in relation to that scheme year in accordance with regulation 56, less any amount paid to GS under regulation 56(10) as a result of a late payment by a defaulting scheme supplier in any mutualisation process carried out in accordance with regulation 56 in that scheme year,

(e) R is the sum of any amounts recovered by the Authority from GS in relation to that scheme year under any enforcement notice or penalty notice, or as a result of any civil action, and including any interest so recovered, but excluding any amounts recovered from GS in relation to a breach of regulation 38(3),

(f) IA is the sum of—

(i) any interest accrued on quarterly levy payments paid by GS in relation to that scheme year whilst in the bank account referred to in regulation 40(5), and

(ii) any interest accrued on levy credit payments paid by GS in relation to that scheme year whilst in the bank account referred to in regulation 42(4),

(g) ID is the sum of any interest distributed by the Authority to GS in accordance with regulation 44 in relation to that scheme year.

(4) Where the Authority has drawn down GS’s existing credit cover against a letter of credit, in accordance with regulation 55, in relation to a scheme year, the Authority must repay the amount drawn down to the person who provided the letter of credit.

Former scheme suppliers

51

(1) This regulation applies where a scheme supplier ceases to be a scheme supplier, other than by virtue of becoming an exempt supplier.

(2) The former scheme supplier (“F”) must—

(a) notify the Authority of—

(i) the date on which they ceased to be a scheme supplier,

(ii) the reason why they ceased to be a scheme supplier, and

(iii) their meter point data for each day of the final quarter, and

(b) provide the Authority with any information the Authority requires to enable it to verify their meter point data, and such other information as the Authority requests.

(3) The information and notification described in paragraph (2) must be provided to the Authority—

(a) where F ceases to be a scheme supplier by reason of—

(i) ceasing to hold a licence under section 7A(1) of the Gas Act 1986, or

(ii) becoming an insolvent company within the meaning given in section 15A(4) of the Company Directors Disqualification Act 1986³²,

within 3 working days of F ceasing to be a scheme supplier, and

(b) in any other case, within 14 days of F ceasing to be a scheme supplier.

(4) Paragraph (3) does not apply where a scheme supplier provides the Authority with the information required by or under that paragraph before the date on which they cease to be a scheme supplier.

(5) Where F does not provide the meter point data required by paragraph (2)(a)(iii), the Authority must determine the number of meter points served by F on each day of the final quarter.

(6) The Authority must—

(a) if the Authority has not notified F of the quarterly levy payment payable by F in relation to the quarter preceding the final quarter in accordance with regulation 40(2), calculate the quarterly levy payment payable by F in relation to that quarter in accordance with the formula set out in regulation 40(1), and

(b) calculate the quarterly levy payment payable by F in relation to the final quarter in accordance with the formula set out in regulation 40(1), but with the modification that “M” in that formula is the sum of F’s meter point data for each day of the final quarter as notified or determined under this regulation.

(7) The Authority must serve a notice on F specifying—

(a) the sum of the amounts calculated in accordance with paragraph (6) (the “final quarterly levy payment”) and how that amount has been calculated,

(b) the amount of F’s existing credit cover,

(i) F’s existing credit cover exceeds the final quarterly levy payment ..., or

(ii) the final quarterly levy payment exceeds F’s existing credit cover (the “outstanding amount”),

(ca) if the payments made by F by way of credit cover exceed the final quarterly levy payment, the excess amount (the “cash excess”),

(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(f) where there is an outstanding amount—

(i) the date by which the outstanding amount is required to be paid by F, being—

(aa) 14 days after the date of the notification, or

(bb) the next date on which quarterly levy payments are due under regulation 40,

whichever is the earlier,

(ii) details of how payment of the outstanding amount must be made, and

including information about the matters mentioned in regulation 54 (interest on late payments), and the matters mentioned in regulation 56 (mutualisation).

(7A) Except where paragraph (7B) applies to F and provided that the final quarterly levy payment is greater than £0, the notice referred to in paragraph (7) must also specify—

(a) the date on which F’s existing credit cover will be drawn down and the amount of that draw down,

(b) whether the draw down will be against payments made, or a letter of credit provided, by F, or both.

(7B) This paragraph applies to F where—

(a) F has complied with the obligations in paragraphs (2) and (3),

(b) if this paragraph did not apply to F the Authority would draw down against a letter of credit provided by F in respect of the whole or part of the final quarterly levy payment, and

(c) the letter of credit provided by F will remain an acceptable letter of credit until the date falling 28 days after the date on which the Authority serves a notice under paragraph (7).

(7C) Where paragraph (7B) applies to F, the notice referred to in paragraph (7) must also specify—

(a) the date on which draw down will be made against payments made by F by way of credit cover and the amount of that draw down (if applicable),

(b) the amount payable in lieu of draw down against F’s letter of credit (the “in lieu amount”), which is the amount that the Authority would draw down against the letter of credit if paragraph (7B) did not apply to F,

(c) that provided F pays to the Authority the in lieu amount and any outstanding amount by the date referred to in paragraph (7)(f)(i), the Authority will not draw down against the letter of credit,

(d) details of how any payment may be made,

(e) that where the in lieu amount or outstanding amount, or both, are not paid in full by the date referred to in paragraph (7)(f)(i), the Authority will draw down against the letter of credit, as soon as is reasonably practicable, the amount required to discharge F’s final quarterly levy payment or, if the letter of credit is insufficient to discharge F’s final quarterly levy payment, the maximum amount specified in the letter of credit.

(7D) Where regulation 43A(2)(f) applies in respect of an amount otherwise payable by or to F under paragraph (8) or (9)—

(a) paragraph (7)(f) (if otherwise applicable) does not apply;

(b) the notice referred to in paragraph (7) must also specify that no amount is payable in respect of the cash excess or the outstanding amount,

(i) for paragraph (7C)(c) there were substituted—

(c) that provided F pays to the Authority the in lieu amount by the date referred to in paragraph (7E), the Authority will not draw down against the letter of credit,

(ii) for paragraph (7C)(e) there were substituted—

(e) that where the in lieu amount is not paid in full by the date referred to in paragraph (7E), the Authority will draw down against the letter of credit, as soon as is reasonably practicable, an amount required to discharge the in lieu amount.

(7E) The date referred to in paragraph (7D)(c)(i) and (ii) is the date—

(a) 14 days after the date of the notice, or

(b) the next date on which quarterly levy payments are due under regulation 40,

whichever is the earlier.

(8) Where paragraph (7)(f) applies, F must pay the outstanding amount to the Authority in accordance with any notification referred to in paragraph (7).

(9) Where there is a cash excess, the Authority must pay the cash excess to F as soon as reasonably practicable after the date on which F’s existing credit cover is drawn down.

(9A) The Authority must pay to F any interest that has accrued on levy credit payments paid by F whilst in the bank account referred to in regulation 42(4) as soon as reasonably practicable after—

(a) in relation to interest paid into the bank account before the date on which the Authority serves a notice under paragraph (7), the date on which the Authority serves a notice under paragraph (7),

(b) in relation to interest paid into the account on or after the date on which the Authority serves a notice under paragraph (7), the date on which the interest is paid into the Authority’s bank account.

(9B) Where the final quarterly levy payment would be a de minimis amount if payable by F, the final quarterly levy payment is £0.

(10) Where immediately before F ceases to be a scheme supplier F was liable to pay, or entitled to receive payment of, any amount under these Regulations, F remains subject to that liability, or to that entitlement, after F ceases to be a scheme supplier, subject to paragraphs (11) to (13).

(11) Regulation 38(8) to (13) continues to apply in relation to F as if F were still a scheme supplier for the purposes of determining whether—

(a) F is an exempt supplier in relation to the scheme year preceding the final scheme year,

(b) F is an exempt supplier in relation to that part of the final scheme year in which F was a scheme supplier, but as if—

(i) references to “a scheme year”, “the scheme year” and “that scheme year” were references to that part of the final scheme year in which F was a scheme supplier,

(ii) in paragraphs (8) and (9), for “by 1st July following the end of that scheme year” there were substituted “within three months of ceasing to be a scheme supplier”,

(iii) in paragraph (10)(b), for “by the relevant date specified in the scheme schedule” there were substituted “within 30 days of the date on which it received the notification and information referred to in paragraph (8)”,

(iv) in paragraph (11), for “by the relevant date specified in the scheme schedule” there were substituted “within 30 days of the date on which it received the notification and information referred to in paragraph (8)”.

(12) Regulation 49 continues to apply in relation to F as if F were still a scheme supplier—

(a) for the purposes of the calculation of any backdated levy payment in relation to the scheme year preceding the final scheme year, but with the modification that the Authority may determine not to require payment of any backdated levy payment by F,

(b) for the purposes of the calculation of any backdated levy payment in relation to the final scheme year, but—

(i) as if references to “a scheme year” and “that scheme year” were references to that part of the final scheme year in which F was a scheme supplier,

(ii) with the modification that the Authority may determine not to require payment of any backdated levy payment by F.

(13) Regulation 50 continues to apply in relation to F as if F were still a scheme supplier—

(a) for the purposes of the calculation of any levy refund payment to which F is entitled in relation to the scheme year preceding the final scheme year,

(b) for the purposes of the calculation of any levy refund payment to which F is entitled in relation to the final scheme year, but as if —

(i) references to “a scheme year” and “that scheme year” were to that part of the final scheme year in which F was a scheme supplier,

(ii) for paragraph (3)(c) there were substituted—

(c) C is the sum of any levy credit payments paid by F to the Authority in relation to the final scheme year in accordance with regulation 42,

(14) For the purposes of this regulation—

(a) “the final quarter”, in relation to F, means the last quarter during any part of which F was a scheme supplier,

(b) “the final scheme year”, in relation to F, means the scheme year in which F ceases to be a scheme supplier.

PART 10 — Compliance and enforcement: scheme suppliers

Anticipated default notices

52

(1) The Authority may serve a notice (an “anticipated default notice”) on a scheme supplier where the Authority reasonably believes it is likely that the scheme supplier will fail to pay—

(a) a quarterly levy payment in accordance with regulation 40,

(b) a levy credit payment in accordance with regulation 42,

(d) a backdated levy payment in accordance with regulation 49, or

(e) a mutualisation payment in accordance with regulation 56.

(2) An anticipated default notice—

(a) must specify—

(i) the amount of quarterly levy payment, levy credit payment, additional credit cover, backdated levy payment, or mutualisation payment, (the “relevant amount”), and the date on which payment of the relevant amount is due,

(ii) where applicable, how the relevant amount has been calculated, and

(iii) the grounds on which the Authority reasonably believes the scheme supplier is likely to fail to pay the relevant amount,

(b) must include information about—

(i) the matters mentioned in paragraphs (3) to (7),

(ii) where appropriate, the matters mentioned in regulation 54 (interest on late payments), regulation 55 (draw down of credit cover), and regulation 56 (mutualisation), and

(iii) appeals under regulation 60, and

(3) The Authority must publish an anticipated default notice, and any other notice served under paragraph (4), as soon as reasonably practicable after the date on which it is served.

(4) An anticipated default notice may be varied or revoked at any time by the Authority by serving a further notice, including a further anticipated default notice or an enforcement notice, on the scheme supplier.

(5) Where the scheme supplier pays all or part of the relevant amount after the service of the anticipated default notice, the Authority must publish—

(a) the fact that the scheme supplier has paid all or part of the relevant amount (as the case may be),

(b) where the scheme supplier has paid part of the relevant amount, the amount paid, and

(6) Any information published in accordance with paragraph (3) or (5) must be published for a minimum period of 12 months, and may be published for such longer period as the Authority may decide.

(7) Where—

(a) the Authority has served an anticipated default notice, and

(b) any part of the amount specified in that notice is not paid by the date on which payment of the amount is due (“the due date”),

on the day after the due date the anticipated default notice is deemed to be an enforcement notice served in accordance with regulation 53(1) in respect of such amount as remains outstanding.

Enforcement notices

53

(1) The Authority may serve a notice (an “enforcement notice”) on a scheme supplier where—

(a) the Authority is satisfied that the scheme supplier has failed to pay—

(i) a quarterly levy payment in accordance with regulation 40,

(ii) a levy credit payment in accordance with regulation 42,

(iii) any additional credit cover,

(iv) a backdated levy payment in accordance with regulation 49,

(v) a mutualisation payment in accordance with regulation 56, or

(vi) interest on a payment referred to in paragraph (i), (iv) or (v) due in accordance with regulation 54, or

(b) the Authority reasonably believes that the scheme supplier has failed to comply with any other obligation imposed on scheme suppliers under Part 7, 8, or 9.

(2) An enforcement notice served in the circumstances referred to in paragraph (1)(a) must—

(a) specify—

(i) the amount of quarterly levy payment, levy credit payment, additional credit cover, backdated levy payment, or mutualisation payment the scheme supplier has failed to pay (the “outstanding amount”),

(ii) where applicable, how the outstanding amount has been calculated,

(iii) where regulation 54 (interest on late payments) applies, any interest due on the outstanding amount at the date the enforcement notice is served and how that amount of interest has been calculated,

(iv) the sum of the outstanding amount and the interest due (“the total amount due”),

(v) the date by which the scheme supplier must pay the total amount due or, where the outstanding amount is a levy credit payment or additional credit cover, the date by which they must pay the total amount due or provide an acceptable letter of credit (or both) in respect of that amount, and

(vi) how the total amount due must be paid, and

(b) include information about the matters mentioned in—

(i) regulation 55 (draw down of credit cover), and

(ii) regulation 56 (mutualisation).

(3) An enforcement notice served in the circumstances referred to in paragraph (1)(b) must specify—

(a) the provision of these Regulations which the Authority believes has been breached,

(b) the matters constituting the breach,

(d) the date by which those steps must be taken.

(4) An enforcement notice must include information about appeals under regulation 60.

(5) The Authority must publish an enforcement notice, and any other notice served under paragraph (6), as soon as reasonably practicable after the date on which it is served.

(6) An enforcement notice may be varied or revoked at any time by the Authority by serving a further notice, including a further enforcement notice, on the scheme supplier.

(7) A scheme supplier on whom an enforcement notice is served must comply with the requirements of that enforcement notice.

(8) The duty imposed by paragraph (7) is enforceable in civil proceedings by the Authority for—

(a) an injunction,

(b) specific performance of a statutory duty under section 45 of the Court of Session Act 1988³³, or

Interest

54

(1) Where—

(a) a scheme supplier fails to pay the Authority all or any part of the following by the date on which it is due—

(i) a quarterly levy payment,

(ii) a backdated levy payment,

(iii) a mutualisation payment,

(iv) a financial penalty, or

(v) a backdated levy payment due in accordance with regulation 49(5), or

(b) a former scheme supplier fails to pay the Authority all or any part of an outstanding amount due in accordance with regulation 51(8),

the Authority must require the scheme supplier, or the former scheme supplier (as the case may be) to pay interest, calculated in accordance with paragraph (2), on the amount which remains unpaid.

(2) The interest payable under paragraph (1) is simple interest calculated from day to day on the unpaid amount from the date by which payment of the amount is due until the date when payment is made, at a rate of 8 per cent per annum over the Bank of England base rate.

(3) For the purpose of this regulation the “Bank of England base rate” means—

(a) the rate announced from time to time by the Monetary Policy Committee of the Bank of England as the official dealing rate, being the rate at which the Bank is willing to enter into transactions for providing short term liquidity in the money markets, or

(b) where an order under section 19 of the Bank of England Act 1998³⁴ (reserve powers) is in force, any equivalent rate determined by the Treasury under that section.

Draw down of credit cover

55

(1) This regulation applies where—

(a) a scheme supplier (the “defaulting scheme supplier”) fails to pay the whole or any part of—

(i) a quarterly levy payment in accordance with regulation 40, or

(ii) a mutualisation payment required in accordance with regulation 56, or

(b) the Authority has served a notice under regulation 51(7) on a former scheme supplier (the “defaulting scheme supplier”) and the final quarterly levy payment specified in the notice is greater than £0.

(2) The Authority must draw down the defaulting scheme supplier’s existing credit cover no earlier than—

(a) where paragraph (1)(a) applies, the next working day after the day on which payment of the unpaid amount was due, or

(b) where paragraph (1)(b) applies, the next wording day after the date specified in the notice in accordance with regulation 51(7A)(a) or (7C)(a) or (e) (as applicable).

(2A) The Authority must not draw down against a letter of credit provided by the defaulting scheme supplier in relation to the defaulting scheme supplier’s final quarterly levy payment where—

(a) regulation 51(7B) applies to the supplier, and

(b) the defaulting scheme supplier has paid to the Authority by the date specified in the notice an amount required to discharge the defaulting scheme supplier’s final quarterly levy payment or, where regulation 51(7D)(c)(ii) applies, the in lieu amount.

(2B) The Authority may also draw down the defaulting scheme supplier’s existing credit cover in respect of any interest (calculated in accordance with regulation 54) due on the amount that the defaulting scheme supplier has failed to pay.

(3) Where the Authority draws down a defaulting scheme supplier’s existing credit cover, the Authority must notify the defaulting scheme supplier of that draw down and the notification must specify—

(a) the amount of the defaulting scheme supplier’s existing credit cover subject to the draw down, and

(b) whether the draw down is against payments made, or a letter of credit provided, by the defaulting scheme supplier, or both.

(4) Where draw down is against payments made by the defaulting scheme supplier, the amount drawn down is treated as a payment by the defaulting scheme supplier in respect of their quarterly levy payment , mutualisation payment, final quarterly levy payment or interest payment (as the case may be).

(5) Where draw down is against a letter of credit provided by the defaulting scheme supplier—

(a) the Authority must take steps to demand payment from the person who provided the letter of credit for the lesser of—

(i) the amount which can be demanded under that letter of credit, and

(ii) the unpaid amount, and

(b) the amount which is paid to the Authority under that letter of credit is treated as a payment by the defaulting scheme supplier in respect of their quarterly levy payment , mutualisation payment, final quarterly levy payment or interest payment (as the case may be), made at the time that amount is received by the Authority.

(6) The Authority may draw down against a letter of credit provided by a defaulting scheme supplier notwithstanding that the letter of credit has ceased to constitute an acceptable letter of credit.

Mutualisation

56

(1) The Authority must carry out a process (a “mutualisation process”) in accordance with this regulation where—

(a) the first condition or the second condition, or both of them, are satisfied, and

(b) the third condition is satisfied.

(2) The first condition is that—

(a) a scheme supplier (the “defaulting scheme supplier”) has failed to pay the whole or part of a quarterly levy payment in accordance with regulation 40, and

(b) where draw down has occurred in accordance with regulation 55 in relation to that failure, the amount drawn down was less than the amount the defaulting scheme supplier had failed to pay.

(3) The second condition is that—

(a) a former scheme supplier (the “defaulting scheme supplier”) has failed to pay the whole or part of an outstanding amount in accordance with regulation 51(8), ...

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) The third condition is that, when notices are given under paragraph (5)(b), the total of any unpaid amounts to be recovered (the “total mutualisation amount”) exceeds the Authority’s estimated administrative costs of carrying out the mutualisation process.

(5) Where the Authority carries out a mutualisation process, the Authority must—

(a) calculate—

(i) the total mutualisation amount,

(ii) the amount a scheme supplier other than a defaulting scheme supplier (a “non-defaulting scheme supplier”) is to pay, in accordance with paragraph (7), and

(b) give notice to each of the non-defaulting scheme suppliers (a “mutualisation notice”) specifying—

(i) that the non-defaulting scheme supplier is liable to make a payment of the amount apportioned to them, calculated in accordance with paragraph (7) (a “mutualisation payment”),

(ii) the date by which the mutualisation payment must be made, and

(iii) details of how the mutualisation payment must be made,

and including information about the matters mentioned in regulation 55 (draw down of credit cover).

(6) A mutualisation notice may not be given earlier than seven days after—

(a) the date on which payment of the quarterly levy payment or the outstanding amount (as the case may be) was due, or

(b) where the mutualisation process is carried out in relation to two or more unpaid amounts, the latest date on which any such amount was due.

(7) A mutualisation payment payable by a non-defaulting scheme supplier is the amount given by—

where—

(a) TMA is the total mutualisation amount,

(b) MPS is the sum of the meter point data for that non-defaulting scheme supplier for each day of the quarter in relation to which the defaulting scheme supplier failed to pay, as notified or determined under regulation 48, and

(c) TMPS is the sum of the meter point data for all the non-defaulting scheme suppliers for each day of the quarter in relation to which the defaulting scheme suppliers failed to pay, as notified or determined under regulation 48.

(8) A non-defaulting scheme supplier given a mutualisation notice under paragraph (5)(b) must pay the mutualisation payment to the Authority by the date specified in the notice.

(9) If the Authority receives the whole or part of an unpaid amount from a defaulting scheme supplier before the mutualisation notices are given to non-defaulting scheme suppliers the Authority must—

(a) where necessary recalculate the amounts referred to in paragraph (5)(a), and

(b) where a defaulting scheme supplier has paid the whole of the unpaid amount referred to in paragraph (2) or (3) (as the case may be), they are a non-defaulting scheme supplier for the purposes of paragraph (5).

(10) If the Authority receives an unpaid amount from a defaulting scheme supplier after giving mutualisation notices to non-defaulting scheme suppliers the Authority must, as soon as reasonably practicable after the date specified under paragraph (5)(b)(ii) in relation to that mutualisation, distribute the amount received, including any interest payment, from the defaulting scheme supplier among the non-defaulting scheme suppliers who have made mutualisation payments, as follows—

where—

(a) AD is the amount due to be paid to a non-defaulting scheme supplier,

(b) SU is the mutualisation amount which the non-defaulting scheme supplier paid in respect of the relevant default,

(c) AU is the total amount of mutualisation payments which were paid by all non-defaulting scheme suppliers in respect of the relevant default, and

(d) AR is the total amount, including any interest payment, recovered from the defaulting scheme supplier.

Penalty notices

57

(1) The Authority may serve a notice (a “penalty notice”) on a scheme supplier where the Authority is satisfied that the scheme supplier—

(a) knowingly provided false or misleading information—

(i) to the Authority pursuant to regulation 38 (notification that a supplier is likely to be an exempt supplier), or regulation 46, 47, or 48 (obligations on scheme suppliers to provide information),

(ii) to a person instructed in accordance with regulation 38(4)(a),

(b) has failed to comply with any other obligation imposed on scheme suppliers under Part 7, 8 or 9, or this Part.

(2) A penalty notice may impose a financial penalty on the scheme supplier of such amount as the Authority deems reasonable in all the circumstances of the case, provided that the amount may not exceed 10% of the scheme supplier’s relevant turnover.

(3) Before serving a penalty notice on a scheme supplier, the Authority must—

(a) notify the scheme supplier that it proposes to impose a financial penalty, and the notification must specify—

(i) the amount of the financial penalty proposed to be imposed,

(ii) the Authority’s reason for proposing to impose the financial penalty,

(iii) the basis on which the Authority determined the amount of the proposed financial penalty,

(iv) a period of not less than 21 days beginning with the date on which the notification is served on the scheme supplier within which representations may be made to the Authority with respect to the proposed financial penalty,

(b) publish the matters referred to in sub-paragraph (a) in such manner as the Authority considers appropriate for the purpose of bringing them to the attention of persons likely to be affected by them,

(d) determine whether to serve the penalty notice and, if so, whether to make any changes to the terms of the proposed penalty notice.

(4) A penalty notice must—

(a) specify—

(i) the amount of the financial penalty,

(ii) the Authority’s reason for imposing the financial penalty,

(iii) the basis on which the Authority determined the amount of the financial penalty,

(iv) the date by which the financial penalty must be paid, being a date not less than 42 days after the date the penalty notice is served on the scheme supplier, and

(v) how the payment must be made, and

(b) include information about—

(i) the matters mentioned in regulation 54 (interest on late payments), and

(ii) appeals under regulation 60.

(5) Any monies received by the Authority pursuant to this regulation must be paid into the Consolidated Fund.

(6) The Authority must publish a penalty notice as soon as reasonably practicable.

(7) Where, at any time before a financial penalty is due to be paid, the Authority ceases to be satisfied that the scheme supplier is liable for that penalty, it must serve a further notice on the scheme supplier—

(a) withdrawing the penalty notice, or

(b) modifying the penalty notice.

(8) The Authority must—

(a) determine and publish a statement of its policy with respect to the imposition of financial penalties under this regulation and the determination of their amount,

(b) keep the statement under review and, where the statement is revised or replaced as a result of such a review, publish the revised or replacement statement, and

(c) have regard to such statement as is published under this paragraph and in force at the time of the scheme supplier’s provision of false or misleading information or failure to comply with an obligation referred to in paragraph (1)(b) (as the case may be), in exercising, or deciding whether to exercise, its power under this regulation.

(9) For the purposes of paragraph (2)—

(a) “relevant turnover”, in relation to a scheme supplier, means—

(i) the scheme supplier’s turnover for the financial year preceding the financial year in which the penalty notice is served, or

(ii) where the scheme supplier has not published or prepared accounts in relation to the whole of that financial year, the scheme supplier’s turnover calculated as follows—

where—

(aa) DFY is the number of days in the financial year,

(bb) DA is the number of days in the financial year for which the scheme supplier’s accounts are available,

(cc) T is the scheme supplier’s turnover in relation to the number of days referred to in sub-paragraph (bb), and

(b) “turnover” has the meaning given in section 474(1) of the Companies Act 2006³⁵.

Recovery of unpaid amounts as a civil debt

58

The following are recoverable, as a civil debt, by the Authority if not paid by the date on which they are due—

(a) a quarterly levy payment,

(b) a levy credit payment,

(d) a backdated levy payment,

(e) a mutualisation payment,

(f) a financial penalty,

(g) any interest due in accordance with regulation 54.

Default register

59

(1) The Authority must publish and maintain a register containing the information described in paragraph (2) (a “default register”), and ensure, so far as practicable, that entries in the default register are accurate and up to date.

(2) Where a scheme supplier fails to pay a quarterly levy payment, a levy credit payment, a payment of additional credit cover, or a mutualisation payment by the date on which that payment is due, the Authority must publish the following information in relation to that scheme supplier in the default register as soon as reasonably practicable —

(a) their name,

(b) whether they have failed—

(i) to pay a quarterly levy payment, a levy credit payment, a payment of additional credit cover, or a mutualisation payment,

(ii) to pay interest due in accordance with regulation 54,

(d) any financial penalty,

(e) any other information in relation to their compliance with these Regulations that the Authority considers appropriate.

(3) Where—

(a) the Authority publishes any information under paragraph (2) in relation to a failure by a scheme supplier to pay a quarterly levy payment, a levy credit payment, a payment of additional credit cover, or a mutualisation payment, and

(b) the Authority determines that they are an exempt supplier in relation to the scheme year in which the liability to make that payment arose,

the Authority must amend the entry in the default register to record that they are an exempt supplier, and the date on which they were determined to be an exempt supplier.

(4) Any information published in accordance with paragraph (1) must be published for a minimum period of one year, or such longer period as the Authority determines.

Appeals

60

(1) A scheme supplier served with an enforcement notice or a penalty notice may appeal to the relevant court—

(a) in the case of an enforcement notice, on the grounds that—

(i) the decision to serve the notice was not within the power in regulation 53 or, in the case of an anticipated default notice which is deemed to be an enforcement notice by virtue of regulation 52(7), the decision to serve the anticipated default notice was not within the power in regulation 52,

(ii) a requirement of regulation 52 or regulation 53 (as the case may be) has not been complied with by the Authority in relation to the enforcement notice,

(b) in the case of a penalty notice, on the grounds that—

(i) the decision to serve the notice was not within the power in regulation 57,

(ii) it was unreasonable of the Authority to require the financial penalty to be paid by the date specified in the notice,

(iii) a requirement of regulation 57 has not been complied with by the Authority in relation to the penalty notice.

(2) An appeal under paragraph (1) must be brought within 42 days of the date of service of the notice.

(3) A notice in respect of which an appeal is brought is suspended, pending determination of the appeal.

(4) For the purposes of paragraph (1), “the relevant court” means—

(a) in England and Wales, the High Court,

(b) in Scotland, the Court of Session.

(5) On the hearing of an appeal the court may—

(a) quash the notice,

(b) affirm the notice, whether in its original form or with such modification as the court sees fit,

(6) The validity of an enforcement notice or a penalty notice may not be questioned by any legal proceedings on the grounds mentioned in paragraph (1)(a)(ii) or (b)(iii), other than as provided for by this regulation.

Application of this Part in relation to former scheme supplier

61

If a scheme supplier ceases to be a scheme supplier, the Authority may commence or continue compliance or enforcement action under this Part in relation to any breach of these Regulations by them which occurred in relation to any scheme year in which they were a scheme supplier, and they are a scheme supplier for the purposes of any such action.

PART 11 — Administrative functions of the Authority

Right of review

62

(1) Any applicant, participant or former participant affected by a decision made by the Authority in exercise of its functions under these Regulations (other than a decision made in accordance with this regulation) may have that decision reviewed by the Authority.

(2) An application for review must be made by notice in such format as the Authority may require and must—

(a) be received by the Authority within 28 days of the date of receipt of notification of the decision to be reviewed,

(b) specify the decision which that person wishes to be reviewed,

(d) be signed by or on behalf of the person making the application.

(3) A person who has made an application in accordance with paragraph (2) must provide the Authority with such information and such declarations as the Authority may reasonably request in order to discharge its functions under this regulation, provided any information requested is in that person’s possession.

(4) A review under this regulation may not be carried out by any person who was involved in the decision which is being reviewed.

(5) On review the Authority may—

(a) revoke or vary its decision,

(b) confirm its decision,

(d) replace any sanction or condition it has imposed with one or more alternative sanctions or conditions.

(6) Within 21 days of the Authority’s decision on a review, it must give a notice to the applicant, participant or former participant (as the case may be), and to any other person who is in the Authority’s opinion affected by its decision on the review, setting out its decision with reasons.

Publication of guidance and scheme schedule

63

(1) The Authority must publish procedural guidance to applicants, participants and scheme suppliers in connection with the administration of the Scheme.

(2) The Authority must publish an administrative timetable (a “scheme schedule”)—

(a) for the period beginning with 1st February 2022 and ending with 31st March 2023, by 1st February 2022,

(b) for the scheme year beginning with 1st April 2023 and each subsequent scheme year, by 1st February preceding the start of the scheme year.

(3) A scheme schedule—

(a) must set out each date which the Authority is required to specify for the purposes of regulations 38(3)(a)(ii), (10)(b) and (11), 40(2), 45(2)(a) and (b), and 48(3) (a “variable date”), and

(b) may set out any other date prescribed in Part 7.

(4) The Authority may change a variable date in a published scheme schedule and, if it does so, must publish the change at least one month before the change is to take effect.

Provision of information to the Authority etc

64

(1) Where under these Regulations the Authority requests information or a declaration from an applicant, a participant, a scheme supplier, or a licensed gas supplier who is not a scheme supplier, or where any such person is required to provide information or a declaration to the Authority—

(a) that information or declaration must be provided within such time and in such manner and form as the Authority may reasonably request and must be accurate to the best of the applicant’s, participant’s, scheme supplier’s or licensed gas supplier’s knowledge and belief, and

(b) the costs of providing the information are to be borne by that applicant, participant, scheme supplier or licensed gas supplier.

(2) When exercising any functions under these Regulations the Authority may treat any declaration given by an applicant, a participant, a scheme supplier, or a licensed gas supplier who is not a scheme supplier, as conclusive evidence of the matters to which that declaration relates, unless the Authority considers that any such declaration is not accurate.

Reporting obligations

65

(1) The Authority must provide monthly reports to the Secretary of State, in such manner and form as the Secretary of State may request, containing the following information, as applicable—

(a) in respect of each participant registered as a producer of biomethane during the period covered by the report—

(i) the total amount of periodic support payments made to the participant,

(ii) the volume of biomethane produced for injection by the participant, and

(iii) sustainability information provided in accordance with regulation 12(6), (7) and (8),

(b) the names of any applicant, participant, or former participant requesting a review under regulation 62, and

(c) such other information as the Authority may hold in relation to its functions under these Regulations as the Secretary of State may require.

(2) Each monthly report must cover a calendar month and must be sent to the Secretary of State within seven working days of the end of that month.

(3) The Authority must publish—

(a) a quarterly report, in respect of each quarter, within one month of the end of the quarter, and

(b) an annual report, in respect of each scheme year, by 31st July following the end of the scheme year.

(4) Each annual report must contain current information relating to the scheme year covered by the report, and the period beginning with 30th November 2021 and ending with the start of that scheme year, as to—

(a) the number of participants,

(b) the volume of biomethane produced for injection by those participants, including any additional biomethane in respect of which those participants are registered,

(d) the number of scheme suppliers and, of those, the number who are provisionally exempt scheme suppliers,

(e) the sum of the quarterly levy payments paid by those scheme suppliers, and

(f) the number of occurrences of—

(i) any scheme supplier failing to pay—

(aa) a quarterly levy payment,

(bb) a levy credit payment,

(cc) a payment of additional credit cover,

(dd) a mutualisation payment,

(ii) any scheme supplier making a payment mentioned in paragraph (i) after the due date, and the average number of days by which such payments were delayed, and

(iii) the Authority—

(aa) drawing down credit cover in accordance with regulation 55,

(bb) carrying out a mutualisation process.

(5) Each quarterly report must contain current information relating to the quarter covered by the report, and the period beginning with 30th November 2021 and ending with the start of that quarter, as to the matters referred to in paragraph (4)(a) to (e), and may contain such information as to the matters referred to in paragraph (4)(f).

(6) Any data which includes the meter point reference number of a customer of a scheme supplier or a former scheme supplier and which may be, or is required to be, reported or published by or under this regulation, must be reported or published (as the case may be) in anonymised form.

(7) In paragraph (6)—

(a) “anonymised form” means that the data is in a form calculated to prevent the data from being identified as relating to a particular person or property,

(b) “customer” in relation to a scheme supplier or a former scheme supplier, means a person who is or has been supplied with gas by that supplier.

Additional information

66

On request by the Secretary of State, the Authority must provide to the Secretary of State in such manner and form and by such date as the Secretary of State may request such additional information as the Authority may hold in relation to the performance of its functions under these Regulations.

Power to use and disclose information

67

(1) This regulation applies to a person (“P”) who holds relevant information, including where P holds that information as a result of disclosure made in accordance with paragraph (3).

(2) P may only use relevant information where it is necessary—

(a) for the purpose of carrying out a function under these Regulations,

(b) for the purpose of monitoring compliance with these Regulations,

(3) Subject to paragraph (5), P may only disclose relevant information to another person (the “recipient”) where it is necessary for the recipient to have the information—

(a) for the purpose of carrying out a function of the recipient under these Regulations,

(b) for the purpose of monitoring compliance with these Regulations,

(4) Disclosure which is authorised by this regulation does not breach—

(a) an obligation of confidence owed by the person making the disclosure, or

(b) any other restriction on the disclosure of information (however imposed).

(5) This regulation does not limit the circumstances in which information may otherwise lawfully be disclosed under any other enactment or rule of law.

(6) For the purposes of this regulation, “relevant information” means information provided by an applicant, a participant, a former participant, a licensed gas supplier, a scheme supplier, or a former scheme supplier in accordance with these Regulations.

Notices

68

(1) Any notice or notification required to be given or served under these Regulations must be in writing and may be sent by electronic means, including by sending it to an email address provided by the addressee for the purposes of these Regulations.

(2) Any such notice or notification required to be given to or served on an applicant, a participant, a former participant, a scheme supplier, or a former scheme supplier (“P”) may be given or served by—

(a) delivering or sending it to, or leaving it at—

(i) P’s registered office (where applicable),

(ii) P’s principal place of activity, or

(iii) another address specified by P as their address for service, or

(b) electronic means, including by sending it to an email address provided by P for the purposes of these Regulations.

SCHEDULE 1 — Information required for registration

1

This Schedule specifies the information that may be required of an applicant for registration.

2

The information is (as applicable to the applicant)—

(a) name and telephone number,

(b) any company registration number,

(d) details of a bank account in the applicant’s name which accepts pound sterling deposits in the United Kingdom,

(e) information to enable the Authority to satisfy itself as to the identity of the individual completing the application,

(f) where an individual is making an application on behalf of an organisation, evidence which satisfies the Authority that the individual has authority from the organisation to make the application on its behalf,

(g) details of the feedstock which the producer of the biogas which is to be used to produce biomethane is proposing to use,

(h) where the applicant is an organisation, details of the size and annual turnover of the organisation,

(i) evidence which demonstrates to the satisfaction of the Authority that the equipment used to produce biomethane to which the applicant’s tariff guarantee applies has been commissioned,

(j) evidence which demonstrates to the satisfaction of the Authority that—

(i) any necessary environmental permit has been granted, or where regulation 6(5)(d)(ii) applies, has been applied for and the application has been accepted by the Environment Agency, the Natural Resources Body for Wales, or the Scottish Environment Protection Agency, as appropriate, or

(ii) an environmental permit is not required,

(k) information relating to the costs of purchasing and installing the equipment used to produce biomethane, and the cost of the connection whereby the biomethane is injected into the pipe-line system,

(l) information relating to the connection whereby the biomethane is injected into a pipe-line system, and which must be submitted by the participant to a person appointed in accordance with regulation 13 for the purposes of an audit,

(m) confirmation, in such form as the Authority may require, that the applicant will comply with the requirements relating to digestate set out in regulation 9(13), and

(n) such other information as the Authority may require to enable it to consider the application for registration.

3

Information specified in this Schedule must be provided in such manner and form as the Authority may reasonably request.

4

The costs of providing the information specified in this Schedule are to be borne by the applicant.

SCHEDULE 2 — Approval of schemes for listing sustainable fuels

1

Where the Secretary of State is satisfied that a scheme complies with the requirements in paragraph 2, the Secretary of State may approve that scheme for the purpose of these Regulations.

2

The requirements in this paragraph are that appropriate procedures have been adopted to ensure that the person administering the scheme (“the scheme administrator”)—

(a) establishes and maintains an accurate and up to date list of fuels which—

(i) are feedstocks used to produce biomethane,

(ii) comply with the requirements in paragraph 3 or 4, and

(iii) are available to be supplied to participants,

(b) includes on the list all those feedstocks in respect of which—

(i) an application has been made to the scheme administrator for that feedstock to be included in the list, and

(ii) the supplier is able to demonstrate compliance with the requirements in paragraph 3 or 4,

(d) ensures that application procedures are clear, proportionate and accessible to suppliers,

(e) ensures that each fuel which is included in the list is allocated an authorisation number or other means of identification which is specific to that feedstock,

(f) requires suppliers of listed feedstocks to—

(i) store listed feedstocks separately from other feedstocks supplied by them which are not so listed, and

(ii) provide documentary evidence of the authorisation number or other means of identification when supplying an approved feedstock,

(g) carries out reasonable checks to ensure that feedstocks which are listed continue to comply with the requirements in sub-paragraph (f) and paragraph 3 or 4,

(h) takes reasonable steps to identify and remove from the list—

(i) any feedstock which no longer complies with the requirements in paragraph 3 or 4, or

(ii) any feedstock which has ceased (other than temporarily) to be available,

(i) where appropriate, removes from the list those feedstocks which are supplied by a supplier who breaches the requirements of the scheme, and

(j) deals with complaints by suppliers in relation to the operation of the scheme in a fair and transparent manner.

3

The requirements in this paragraph are—

(a) that the feedstock meets the greenhouse gas criteria, and

(b) that any feedstock which is included in the list meets the land criteria.

4

The requirement in this paragraph is that the feedstock is, or is wholly derived from, waste.

5

Where the Secretary of State approves a scheme under paragraph (1), the Secretary of State may declare that any feedstock—

(a) listed under that scheme before the date on which the scheme is approved, and

(b) received by a participant before that date,

is deemed to meet the requirement in paragraph 3(a) and the land criteria.

6

Where the Secretary of State is no longer satisfied that an approved scheme complies with the requirements in paragraph 2, the Secretary of State may by notice to the scheme administrator, revoke approval of the scheme with effect from the date specified in the notice.

7

Where approval is revoked in accordance with paragraph 6, any feedstock listed under the scheme which has been supplied to a participant before the date on which the approval is revoked is treated as an approved sustainable fuel for the purposes of these Regulations.

8

In this Schedule—

(a) “greenhouse gas criteria” has the meaning given in regulation 12(10)(a),

(b) “land criteria” has the meaning given in regulation 12(10)(d).

SCHEDULE 3 — Land criteria

PART 1 — Interpretation

1

(1) In this Schedule—

“continuously forested area” means land of an area of more than one hectare which includes—trees more than five metres tall providing a tree canopy cover of more than 30%, ortrees collectively having the capacity to provide a tree canopy cover of more than 30% which—are more than five metres tall, orhave the capacity to grow to a height of more than five metres;

“designated for nature protection purposes” means designated pursuant to the law of the United Kingdom or of any part of the United Kingdom or pursuant to the law of any country or territory outside the United Kingdom, for the purpose of protecting the natural environment;

“highly biodiverse grassland” means highly biodiverse grassland that is—natural, namely grassland that would remain grassland in the absence of human intervention and which maintains the natural species composition and ecological characteristics and processes, ornon-natural, namely grassland that would cease to be grassland in the absence of human intervention and which is species-rich and not degraded, unless evidence is provided that the harvesting of the raw material is necessary to preserve its grassland status;

“primary forest” means woodland of native species, where there is no clearly visible indication of human activity and ecological processes are not significantly disturbed;

“wetland area” means land that is covered with or saturated by water—permanently, orfor a significant part of the year.

(2) For the purposes of this Schedule—

(a) material is added to solid biomass for an exempt purpose if—

(i) it is added for the purpose of the use of that solid biomass as a fuel, in order to—

(aa) act as a binding agent, or

(bb) reduce emissions of dust, carbon dioxide, methane or nitrous oxide from the use of the fuel, and

(ii) it does not exceed 2% of the weight of the fuel,

(b) solid biomass was obtained from a former continuously forested area if the land—

(i) was a continuously forested area at any time during January 2008, and

(ii) was not a continuously forested area when the solid biomass was obtained from it.

(i) was a wetland area at any time during January 2008, and

(ii) was not a wetland area when the solid biomass was obtained from it.

PART 2 — Land criteria for solid biomass which is wood or wholly derived from wood, excluding energy crops

2

Solid biomass which is wood or wholly derived from wood (except energy crops) meets the land criteria if—

(a) at least 70% of the consignment was obtained from a sustainable source,

(b) where more than one consignment is used in a quarter, at least 70% of the solid biomass used was obtained from a sustainable source, or

(c) the solid biomass was certified under an environmental quality assurance scheme which ensures that at least 70% of the solid biomass certified by that scheme was obtained from a sustainable source.

3

(1) For the purposes of paragraph 2, solid biomass which is wood or wholly derived from wood (except energy crops) is obtained from a sustainable source if it—

(a) was grown within an area of forest or of other land which is managed—

(i) in a way that is consistent with—

(aa) the Forest Europe Sustainable Forest Management Criteria, or

(bb) a set of international principles for the sustainable management of land which meet the requirements specified in sub-paragraph (2), and

(ii) to meet the requirements specified in sub-paragraph (4),

(b) was residue from arboriculture carried out in an area which was not a forest, or

(2) The requirements specified in this sub-paragraph are that—

(a) the principles have been adopted following a process (“the principle-setting process”) which sought to—

(i) obtain a balanced representation of the views of interest groupings,

(ii) ensure that no single interest grouping could dominate the principle-setting process, and

(iii) ensure that no decision on the contents of the principles could be made in the absence of agreement from a majority within each interest grouping involved in the principle-setting process, and

(b) the principles can be changed by a process (“the change process”) which seeks to ensure that—

(i) no single interest grouping can dominate the change process, and

(ii) no decision on changes to the principles can be made in the absence of agreement from a majority within each interest grouping involved in the change process.

(3) For the purposes of sub-paragraph (2), each of the following is an interest grouping in relation to an area of forest or of other land where the solid biomass was grown—

(a) persons with interests which are predominantly economic in nature,

(b) persons with interests which are predominantly environmental in nature,

(4) The requirements specified in this sub-paragraph are—

(a) harm to ecosystems is minimised, in particular by—

(i) assessing the impacts of the extraction of wood from the area and adopting plans to minimise any negative impacts,

(ii) protecting soil, water and biodiversity,

(iii) controlling the use of chemicals and ensuring that chemicals are used in an appropriate way,

(iv) wherever possible, using integrated pest management, and

(v) disposing of waste in a manner that minimises any negative impacts,

(b) the productivity of the area is maintained, in particular by—

(i) adopting plans to avoid significant negative impacts on productivity,

(ii) adopting procedures for the extraction of wood that minimise the impact on other uses of the area,

(iii) providing for all of the contractors and workers who are working in the area to be adequately trained in relation to the maintenance of productivity, and

(iv) maintaining an adequate inventory of the trees in the area (including data on the growth of the trees and on the extraction of wood) so as to ensure that wood is extracted from the area at a rate which does not exceed its long-term capacity to produce wood,

(c) compliance with the requirement specified in paragraph (b) is monitored, the results of that monitoring are reviewed and planning is updated accordingly,

(d) the health and vitality of ecosystems is maintained, in particular by—

(i) adopting plans to maintain or increase the health and vitality of ecosystems,

(ii) adopting plans to deal with natural processes or events such as fires, pests and diseases, and

(iii) taking adequate measures to protect the area from unauthorised activities such as illegal logging, mining and encroachment,

(e) biodiversity is maintained, in particular by—

(i) implementing safeguards to protect rare, threatened and endangered species,

(ii) conserving key ecosystems in their natural state, and

(iii) protecting features and species of outstanding or exceptional value,

(f) those responsible for the management of the area (and any contractors engaged by them) comply with local and national laws relating to health and safety and the welfare of workers,

(g) those responsible for the management of the area have regard to—

(i) legal, customary and traditional rights of tenure and land use,

(ii) mechanisms for resolving grievances and disputes including those relating to tenure and land use rights, forest or land management practices and working conditions, and

(iii) safeguarding the health and safety and rights of workers, and

(h) there is regular assessment of the extent to which those responsible for the management of the area have met the requirements specified in paragraphs (a) to (g).

4

Material added to solid biomass for an exempt purpose is disregarded for the purposes of paragraph 2.

5

For the purposes of paragraph 3—

(a) “integrated pest management” means careful consideration of all available plant protection methods and subsequent integration of appropriate measures that discourage the development of populations of harmful organisms and keep the use of plant protection products and other forms of intervention to levels that are economically and ecologically justified and reduce or minimise risks to human health and the environment,

(b) “Forest Europe Sustainable Forest Management Criteria” means the criteria for sustainable forest management in Lisbon Resolution L2 of the third Ministerial conference on the Protection of Forests in Europe held in June 1998³⁶.

PART 3 — Land criteria for other solid biomass including energy crops

6

Solid biomass which is not wood or derived wholly from wood, or which is an energy crop, meets the land criteria if it—

(a) was not obtained from a protected source,

(b) was an energy crop in respect of which financial assistance was paid under the Energy Crops Regulations 2000³⁷ or under an equivalent financial assistance scheme, or

7

Material added to solid biomass for an exempt purpose is disregarded for the purposes of paragraph 6.

8

Solid biomass is obtained from a protected source if it is obtained from—

(a) land which at any time during or after January 2008 was primary forest,

(b) except where paragraph 9 applies, land which at any time during or after January 2008 was designated for nature protection purposes,

(d) except where paragraph 10 applies, land which at any time during January 2008 was peatland,

(e) a former continuously forested area, or

(f) a former wetland area.

9

This paragraph applies if the production of the solid biomass did not interfere with the nature protection purposes for which the land was designated.

10

This paragraph applies if the cultivation and harvesting of the solid biomass did not involve the drainage of previously undrained soil.

Signed

Callanan — Parliamentary Under Secretary of State — Department for Business, Energy and Industrial Strategy — 2021-11-29

Explanatory note

(This note is not part of the Regulations)

EXPLANATORY NOTE

These Regulations, which apply in Great Britain, establish the Green Gas Support Scheme (“the Scheme”) which runs to 31st March 2041.

The Scheme is a renewable heat incentive scheme to facilitate and encourage the production of biomethane by anaerobic digestion, for injection into the gas grid. To that extent the Scheme replaces the Renewable Heat Incentive Scheme, set out in the Renewable Heat Incentive Scheme Regulations 2018 (S.I. 2018/611), which closed to new applicants, with some exceptions, on 31st March 2021.

The Scheme supports the production of biomethane through a tariff based mechanism, and is funded by levy payments from fossil fuel suppliers.

The Regulations confer functions on the Gas and Electricity Markets Authority (“the Authority”) in relation to the administration of the Scheme.

Part 2 (registration of participants and tariff guarantees) sets out the process by which a person who produces, or proposes to produce, biomethane for injection by anaerobic digestion can apply to be registered as a participant in the Scheme in relation to that production using specified equipment used to produce biomethane (that is, equipment including at least one anaerobic digester).

It provides that the person must first make an application to the Authority for a tariff guarantee. The effect of the tariff guarantee, if granted, is that once they are registered as a participant, they are entitled to be paid the initial tariff that applied on the date of their application for the tariff guarantee (rather than the initial tariff applicable on the date on which they become registered as a participant). It also provides for registered participants to apply to be registered in relation to additional biomethane capacity. The final date on which an applicant may be registered as a participant, and a participant can be registered in relation to additional biomethane, under the Scheme is 30th November 2025.

Part 3 (ongoing obligations on participants) sets out the obligations on participants, including in relation to: the feedstock from which the biomethane may be produced, the spreading of digestate generated from anaerobic digesters, the provision of information to the Authority, and the requirement to produce sustainable biomethane and to submit sustainability audit reports to the Authority.

Part 4 (changes affecting participants) provides for the Authority to review a participant’s registration following a change of circumstances. It also sets out the circumstances in which a person who starts to use equipment to produce biomethane, where that equipment was previously used by a registered participant, can become registered instead as the participant. And it provides for a participant to withdraw from the Scheme.

Part 5 (periodic support payments) sets out a participant’s entitlement to periodic support payments for 15 years from the date of their registration as a participant, and sets out the mechanisms by which initial and subsequent tariffs are calculated.

Part 6 (enforcement: participants) provides for the Authority to take action in the event that a participant fails to comply with an ongoing obligation, or was registered as a participant on the basis of information which was incorrect in a material particular. The Authority may: withhold or reduce a participant’s periodic support payments, correct the level of tariff being paid to a participant, revoke a participant’s registration, and recover overpayment of periodic support payments.

Part 7 (the levy) provides that licensed gas suppliers who are fossil fuel suppliers are “scheme suppliers” and liable to make levy payments to the Authority. But it provides that, where the Authority is satisfied that at least 95% of the gas supplied by them in a year was biomethane, a licensed gas supplier is not a scheme supplier in relation to that year, but is an exempt supplier. It sets out the mechanism by which a supplier must notify the Authority, before the start of a year, if they consider it is likely they will be an exempt supplier, and by which the Authority will determine, after the end of the year, whether the supplier is in fact exempt.

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