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Following a legal review, the Office of the Attorney General has advised of the need to amend enabling provisions for Ministerial orders under Section 44D of the National Oil reserves Agency Act 2007 as the basis for further increase the renewable transport fuel obligation (RTFO) rates as envisaged under the Renewable Transport Fuel Policy 2023-2025.
To amend the legal provisions in advance of the 2024 RTFO obligation period, and on the basis that the RTFO rate increases fulfil the EU obligation under the Renewable Energy Directive, regulations will be made under s.3 of the European Communities Act 1972 with a view to enactment before year-end.
Under the regulations, the enabling provisions and consultation provisions under section 44D of the 2007 Act for Ministerial orders will be deleted and replaced with provisions inserting the 2024 RTFO rates within Section 44D.
While there will no longer be any requirement for the Minister to consult on or publish draft Ministerial orders, in advance of the enactment of the amending regulations the Minister would like to provide advance notice confirming his intention by 1 January 2024 to increase the extant obligation rates for the 2024 obligation period.
Subject to the amending regulations, the percentage rates (expressed as the proportion of the renewable transport fuel in relevant disposals of road transport fuel petroleum products by energy) for the obligation period beginning on 1 January 2024 and ending on 31 December 2024 shall be
• 21 % in respect of the renewable transport fuel obligation, and
• 1% in respect of the advanced biofuel obligation |
