(1) An electricity distribution utility or bulk customer shall procure a specified percentage of its total purchase of electricity from renewable energy sources.

(2) The Public Utilities Regulatory Commission shall in consultation with the Energy Commission specify the percentage level of electricity to be purchased by the electricity distribution utility or bulk customer.

(3) The Public Utilities Regulatory Commission shall take into account the

(a) technology being used to generate electricity from renewable energy sources;

(b) assurance of the financial integrity of public utilities; and

(c) net effect of the cost of renewable energy on the end user tariff, in specifying the percentage level of electricity.

(4) An electricity distribution utility or a bulk customer permitted by the Commission, shall

(a) purchase a specified percentage of its total purchase of electricity from renewable energy sources; or

(b) pay to the Commission a premium as determined by the Commission.

(5) The premium payable shall be paid by the Commission into the bank account opened for the purpose under section 34.

(6) Where an electricity distribution utility or a bulk customer fails to purchase a specified percentage of its total purchase of electricity from renewable energy sources or refuses to pay the premium required under subsection (4)

(a) the Commission may suspend the permit obtained by the bulk customer to purchase electricity from a wholesale supplier; and

(b) the bulk customer shall pay

(i) the sum total of the difference between the end user tariff and the purchase price of the renewable energy payable calculated from the date the amount was due and payable, and

(ii) a fine of five thousand penalty units.