58Financial assurances—the Act, Schedule 4A, cl 45(9)

58 Financial assurances—the Act, Schedule 4A, cl 45(9)

58 Financial assurances—the Act, Schedule 4A, cl 45(9)

(1) This section applies if the Scheme Administrator imposes a condition on a person’s accreditation as an energy savings certificate provider requiring the person to give the Scheme Administrator financial assurance to secure or guarantee compliance with an order under the Act, Schedule 4A, clause 45.

(2) The amount of financial assurance required by the Scheme Administrator must be determined by the Scheme Administrator having regard to the following—

(a) the activities for which the person is or will be accredited,

(b) the number of energy savings certificates the person has created or is likely to create,

(c) how frequently the person’s activities are or will be audited,

(d) other matters the Scheme Administrator considers relevant.

(3) Financial assurance must be in the form the Scheme Administrator considers appropriate.

Examples—

a bank guarantee or bond

(4) A claim may be made on the financial assurance given by a person only if—

(a) an order is made against the person under the Act, Schedule 4A, clause 45, and

(b) the person fails to comply with the order.

(5) The Scheme Administrator must, at least 21 days before making a claim on the financial assurance given by a person, give the person written notice of the Administrator’s intention to make the claim.

(6) The Scheme Administrator must not claim more than the compliance cost of the person’s failure to comply with the order under the Act, Schedule 4A, clause 45.

(7) In this section—

compliance cost means the amount determined by multiplying the number of certificates the person failed to surrender by the scheme penalty rate for the year in which the financial assurance is claimed on or realised.