The Electricity from Non-Fossil Fuel Sources Arrangements (England and Wales) Order 2006
This Order modifies certain contracts between certain generators of electricity and the Non-Fossil Purchasing Agency Limited (“the NFPA”). Under the contracts in question, the intention was that, if the generators met certain requirements in terms of supplying heat, they would be paid a ‘premium’ price for the electricity which they generated by the NFPA. If they failed to meet those requirements, then they would receive from the NFPA a ‘reference’ price, fixed at a level below the premium price. Unfortunately, it has since emerged that the way in which the two prices are calculated results in the reference price being higher than the premium price, which has removed the intended financial incentive for generators to meet the requirements placed upon them in relation to supplying heat. The amendment to be made to the contracts in question by this Order will correct this anomaly.