The Contracts for Difference (Sustainable Industry Rewards) Regulations 2024
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Change 1
8 Amendment to regulation 6 (allocation frameworks)
In regulation 6— (a) for paragraph (1) substitute— (1) The Secretary of State— (a) must ensure that one contract allocation framework applies to each allocation round; (b) may apply a contract allocation framework to more than one allocation round; (c) may, in relation to the seventh, eighth and ninth allocation rounds, apply a sustainable industry reward allocation framework to the allocation round in addition to the contract allocation framework; and (d) may, if the Secretary of State applies a sustainable industry reward allocation framework to the seventh, eighth or ninth allocation round, apply that framework to more than one of those allocation rounds. ; (b) in paragraph (2)— (i) for “An allocation framework” substitute “A contract allocation framework”; (ii) in both places where it occurs, for “allocation process” substitute “contract allocation process”; (c) after paragraph (2) insert— (2A) A sustainable industry reward allocation framework must, in respect of the allocation round or rounds to which it applies, set out— (a) the sustainable industry reward allocation process; (b) how the Secretary of State is to determine the contribution which the establishment or alteration of an offshore wind CFD unit is likely to make to the development and sustainability of supply chains, which must include an assessment of the matters referred to in paragraph (2B); (c) a process for review before a final determination is made of the likely contribution referred to in sub-paragraph (b); (d) the minimum standards of the likely contribution referred to in sub-paragraph (b) which must be met before the Secretary of State may give a sustainable industry reward statement; (e) the method which the Secretary of State must apply to determine whether a sustainable industry reward may be payable and the amount of that potential reward; and (f) the method by which the Secretary of State must score and rank sustainable industry reward applications. (2B) The matters referred to in this paragraph are— (a) increasing productivity, competitiveness and capacity in supply chains; (b) encouraging innovation in supply chains; (c) developing a diverse and skilled workforce and increasing employment opportunities; (d) increasing investment in and finding technical solutions to improving infrastructure that is relevant to the generation, storage, demand or use of electricity; (e) increasing the sustainability of supply chains, in particular— (i) increasing the long-term economic sustainability of supply chains; (ii) minimising the negative environmental impacts of supply chains; and (iii) delivering benefits to the communities in which supply chains operate; and (f) increasing the investment in deprived areas which results from supply chains. ; (d) in paragraph (3), for “allocation process” substitute “contract allocation process”.
8 Amendment to regulation 6 (allocation frameworks)
In regulation 6— (a) for paragraph (1) substitute— (1) The Secretary of State— (a) must ensure that one contract allocation framework applies to each allocation round; (b) may apply a contract allocation framework to more than one allocation round; (c) may, in relation to the seventh, eighth and ninth allocation rounds, apply a sustainable industry reward allocation framework to the allocation round in addition to the contract allocation framework; and (d) may, if the Secretary of State applies a sustainable industry reward allocation framework to the seventh, eighth or ninth allocation round, apply that framework to more than one of those allocation rounds. ; (b) in paragraph (2)— (i) for “An allocation framework” substitute “A contract allocation framework”; (ii) in both places where it occurs, for “allocation process” substitute “contract allocation process”; (c) after paragraph (2) insert— (2A) A sustainable industry reward allocation framework must, in respect of the allocation round or rounds to which it applies, set out— (a) the sustainable industry reward allocation process; (b) how the Secretary of State is to determine the contribution which the establishment or alteration of an offshore wind CFD unit is likely to make to the development and sustainability of supply chains, which must include an assessment of the matters referred to in paragraph (2B); (c) a process for review before a final determination is made of the likely contribution referred to in sub-paragraph (b); (d) the minimum standards of the likely contribution referred to in sub-paragraph (b) which must be met before the Secretary of State may give a sustainable industry reward statement; (e) the method which the Secretary of State must apply to determine whether a sustainable industry reward may be payable and the amount of that potential reward; and (f) the method by which the Secretary of State must score and rank sustainable industry reward applications. (2B) The matters referred to in this paragraph are— (a) increasing productivity, competitiveness and capacity in supply chains; (b) encouraging innovation in supply chains; (c) developing a diverse and skilled workforce and increasing employment opportunities; (d) increasing investment in and finding technical solutions to improving infrastructure that is relevant to the generation, storage, demand or use of electricity; (e) increasing the sustainability of supply chains, in particular— (i) increasing the long-term economic sustainability of supply chains; (ii) minimising the negative environmental impacts of supply chains; and (iii) delivering benefits to the communities in which supply chains operate; and (f) increasing the investment in deprived areas which results from supply chains. ; (d) in paragraph (3), for “allocation process” substitute “contract allocation process”.
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