Electricity Regulation Act 1999 (Public Service Obligations) Order, 2002

• Jurisdiction: Ireland
• Year: 2002
• Citation: IR SI 217/2002

TABLE OF CONTENTS
1. Citation 2 2. Interpretation 2 3. Direction to the Commission for Energy Regulation 4 4. Period of public service obligations 4 5. Public service obligation for Peat 5 6. Public service obligation for Renewable, Sustainable or Alternative forms of energy 7 7. Public service obligation Levy 7 8. Calculation of PSO Levy amount - constituent elements 7 9. Estimation of PSO Levy 9 10. Certification of PSO Levy 12 11. Duty of suppliers to invoice and collect PSO Levy 13 12. Duty of suppliers to account to distribution system operator for PSO Levy 13 13. Duty of suppliers to account to transmission system operator for PSO Levy 13 14. Duty of distribution system operator to account to transmission system operator for PSO levy 13 15. Duty of transmission system operator to account to Board for PSO Levy 14 16. Duty of final customers to pay PSO Levy 14 17. Duty of distribution system operator and transmission system operator to inform Commission as to the level of PSO Levy amounts received 14 18. Recovery of PSO Levy amounts due 14 19. CER supervision 15 20. Provision of information 17 21. Transmission system operator duty of priority dispatch of generating stations 17 SCHEDULE 1 Part 1. Edenderry Power Ltd. peat powered generating station referred to in Article 5 18 Part 2. ESB's peat powered generating stations referred to in Article 5 18 Part 3. Renewable, Sustainable or Alternative Energy contracts referred to in Article 6 19 SCHEDULE 2 PSO Levy: invoicing and collection terms 21
S.I. No. 217 of 2002
ELECTRICITY REGULATION ACT 1999
(PUBLIC SERVICE OBLIGATIONS) ORDER 2002
I, Mary O'Rourke, Minister for Public Enterprise, in exercise of the powers conferred on me by section 39 of the Electricity Regulation Act 1999 (No. 23 of 1999) (as amended by the European Communities (Internal Market in Electricity) Regulations 2000 ( S.I. No. 445 of 2000 ) and the Sustainable Energy Act 2002 (No. 2 of 2002)), in consideration of general social, economic and environmental factors and following consultation with the Minister for the Environment and Local Government, and having, in accordance with section 39 (10) of the Electricity Regulation Act 1999 , given a draft of this Order to the Electricity Supply Board, being the person upon whom the obligations are to be imposed, hereby order as follows:
	Citation	1. This Order may be cited as the Electricity Regulation Act 1999 (Public Service Obligations) Order 2002.
	Interpretation	2.(1) In this Order-
“Act” means the Electricity Regulation Act 1999 , as amended;
“category” means a category of electricity account holders referred to in section 39 (5A) and specified in Schedule 2 of the Act;
“Commission” means the Commission for Energy Regulation (CER) established by the Act;
“distribution system operator” means the holder of a licence granted under Section 14(1)(g) of the Act to discharge the functions of the distribution system operator;
“EU Commission” means the Commission of the European Communities;
“levy period” means a period of 12 calendar months commencing on 1 January in each period;
“Notification” means the correspondence referred to at paragraphs 1 to 4 of EU Commission C(2001)3265 fin dated 30.10.2001 and at paragraphs 1 and 2 of EU Commission C(2002)5fin dated 15.01.2002 relating to a notification to the EU Commission (Reference Nos. N6/A/2001 and N826/2001 - Ireland) pursuant to Articles 16 and 86 of the Treaty;
“PPA” means a power purchase agreement between the Board and a third party power producer;
“public service obligations levy” means the levy referred to in Article 7 of this Order;
“supplier” means the holder of a licence granted under Section 14, subsection (1) (a) (b), (c) and (d), and subsection (2) of the Act and the Board, and the holder of a permit under Section 37 of the Principal Act, in respect of the supply of electricity to final customers;
“transmission system operator” means the holder of a licence under Section 14(1)(e of the Act of 1999 to discharge the functions of the transmission system operator or the Board in its capacity as ESB National Grid, as appropriate.
(2) In this Order-
(a) a reference to an Article or Schedule is to an Article of, or Schedule to this Order, unless it is indicated that reference to some other Order is intended, and
(b) a reference to a paragraph or subparagraph is a reference to a paragraph or subparagraph of the provision in which the reference occurs, unless it is indicated that reference to some other provision is intended.
(3) (a) For the purposes of Article 8 (1) (a) and Article 10 (1) (a) “additional costs” includes costs incurred by the Board in complying with its obligations under Article 5 (1) (a) and (b) incurred by it either before or after the making of this Order and which are not otherwise recovered.
(b) Nothing in paragraph (a) shall entitle the Board to recover additional costs unless those costs are in accordance with the method for determination of costs provided for in the Notification and this Order.
(4)In respect of the first levy period, a reference in Article 8 (1) to administrative expenses of suppliers, the distribution system operator or the transmission system operator in the period concerned shall be construed as including administrative expenses which were incurred prior to the first levy period which relate to the introduction and implementation of the PSO Levy.
	Direction to the Commission for Energy Regulation	3. The Commission for Energy Regulation is directed to impose on the Board public service obligations in the terms set out in this Order.
	Period of public service obligations	4.(1) The period of the public service obligations shall -
(a) as respects the obligations to be imposed pursuant to Article 5 (1) (a and (b), commence on the making of this Order,
(b) as respects the obligations to be imposed pursuant to Article 5 (1) (c) and (d) and Article 6, commence on 1 January 2003, and
(c) as respects the obligation to be imposed pursuant to Article 5 (1) (e) commence on such date or dates as will enable the Board to bring the generating stations into operation not later than the respective dates referred to in Article 5 (1) (a) and (b),
and subject to the provisions of paragraph (2) and Articles 5 and 6, shall continue until 31 December 2019.
(2) Notwithstanding paragraph (1) the public service obligations shall not continue in respect of a particular PPA beyond the date specified in column (3) of Part 1 of Schedule 1 or column (4) of Part 3 of Schedule 1 as respects the PPA concerned.
	Public service obligation for Peat	5. (1) There shall be imposed by the Commission on the Board a requirement to take such steps and make such arrangements as are necessary-
(a) to construct and commission the peat generating station specified at paragraph 2 of Part 2 of Schedule 1 in such manner as to ensure that such station is in operation not later than 28 February 2005, which station shall when constructed use indigenous peat as its primary energy fuel source and to ensure that, when constructed, and subject to the provisions of this Order, throughout the period referred to in Article 4, which relates to that generating station, the Board has available to it the amount of electricity generated by that generating station; and
(b) to construct and commission the peat generating station specified at paragraph 3 of Part 2 of Schedule 1 in such manner as to ensure that such station is in operation not later than 1 January 2005, which station shall when constructed use indigenous peat as its primary energy fuel source and to ensure that, when constructed, and subject to the provisions of this Order, throughout the period referred to in Article 4, which relates to that generating station, the Board has available to it the amount of electricity generated by that generating station; and
(c) to secure that, with effect from 1 January 2003, the Board has available to it and purchases the amount of electricity generated by the generating station the subject matter of the PPA referred to in Part 1 of Schedule 1 being a generating station which uses indigenous peat as its primary energy fuel source, and to ensure that, subject to the provisions of this Order, throughout the period referred to in Article 4 the Board has available to it the amount of electricity generated by that generating station; and
(d) to secure that, with effect from 1 January 2003, subject to paragraph (2) the Board has available to it and purchases the amount of electricity generated by the generating stations referred to in paragraph 1 of Part 2 of Schedule 1 being generating stations which use indigenous peat as their primary energy fuel source, and to ensure that, subject to the provisions of this Order, throughout the period referred to in Article 4 the Board has available to it the amount of electricity generated by those generating stations, and
(e) to purchase such amount of peat harvested within the State as is required to generate the electricity to be produced by the generating stations referred to in paragraphs (a) and (b) on terms having equivalent economic effect (as determined by the Commission) as the terms of the fuel supply agreement made between Bord na Mona and Edenderry Power Limited which agreement relates to the generating station referred to at paragraph 1 of Part 1 of Schedule 1,
provided that the amount of peat used in any calendar year to generate that electricity shall not exceed 15 per cent of the overall primary energy necessary to produce...