The Smart Export Guarantee Order 2019

Document Number:2019 No. 1005

Statutory Instruments



9 th June 2019

Laid before Parliament

10 th June 2019

Coming into force in accordance with article 1

The Secretary of State, in exercise of the powers conferred by sections 41(4) , 43(3)(a) and 104(2) of the Energy Act 2008(1) , makes the following Order.

PART 1 Introductory

Citation and commencement

  1. —(1) This Order may be cited as the Smart Export Guarantee Order 2019.

    (2) This article and articles 2 and 5 come into force on 1 st October 2019.

    (3) Otherwise, this Order comes into force on 1 st January 2020.


  2. —(1) In this Order—

    “SEG licensee” means a person who is a holder of a licence under section 6(1)(d) of the Electricity Act 1989(2) and, immediately prior to the current SEG year, submitted a notification to the Authority(3) that it will be a SEG licensee for that SEG year;

    “Standard Licence Condition 57” means the condition so numbered in the standard conditions incorporated in licences granted under section 6(1)(d) of the Energy Act 1989 by virtue of section 8 A of that Act(4).

    (2) In this Order the following expressions have the meanings given to them in Schedule A to Standard Licence Condition 57—

    “AD installation”;

    “AD reporting start date”;

    “anaerobic digestion”;

    “eligible installation”;

    “export tariff”;

    “mandatory SEG licensee”;


    “SEG generator”;

    “SEG payments”

    “SEG year” and “first SEG year”;

    “total installed capacity”;

    “voluntary SEG licensee”.

    PART 2 Specified maximum capacity

    Specified maximum capacity

  3. The specified maximum capacity is 5 megawatts of total installed capacity.

    PART 3 Functions of the Authority

    Functions of the Authority in relation to AD installations

  4. —(1) This article applies where the Authority receives confirmation from a SEG generator who intends to seek SEG payments in respect of an AD installation that the SEG generator intends to comply with the provisions of the Schedule.

    (2) The Authority must—

    (a) verify whether the SEG generator meets the criteria set out in the Schedule; and

    (b) notify the SEG generator of whether those criteria were met or not.

    (3) The Authority must verify that the SEG generator has continued to meet the criteria in accordance with paragraph (2)(a) on a quarterly basis in relation to the sustainability criteria, and on an annual basis in relation to the feedstock criteria, and notify the SEG generator of the result of that verification as soon as practicable after its conclusion.

    (4) Where the Authority cannot be satisfied on the basis of information provided by the SEG generator, including an audit report provided under paragraph 5 of the Schedule, that the SEG generator has met the criteria set out in that Schedule, the Authority must inform the SEG generator that it is not able to verify that the criteria have been met.

    (5) Where paragraph (4) applies, the SEG generator may, on the Authority’s request or otherwise, provide further information, including a further audit report complying with paragraph 5 of the Schedule, to the Authority, and, on receipt of such further information, the Authority must consider whether it is able to ascertain whether the criteria set out in the Schedule are met or not.


  5. —(1) The Authority must publish, before 1 st January 2020 , guidance to SEG generators and SEG licensees on the operation of the SEG.

    (2) The Authority must keep the guidance published under this article under review, and, if it thinks it appropriate to do so, publish updated guidance.

    List of SEG Licensees

  6. Before the start of each SEG year (except the first SEG year) , the Authority must publish a list of all SEG licensees, and that list must distinguish between mandatory SEG licensees and voluntary SEG licensees.


  7. —(1) The Authority must at least once in each calendar year, beginning with 2021 , prepare and publish a report, which must set out—

    (a) the export tariffs that have been offered by SEG licensees;

    (b) the number of eligible installations which are in receipt of SEG payments;

    (c) how much generation has been the subject of SEG payments;

    (d) the total amount of SEG payments which have been made; and

    (e) a breakdown of SEG payments by—

    (i) capacity; and

    (ii) the energy source generating the electricity.

    (2) The Authority must also set out in the report the period which that report covers.


  8. The Authority may require a SEG licensee to provide it with any information which it believes the licensee holds and which, in the...

To continue reading