# The Contracts for Difference (Electricity Supplier Obligations) (Amendment) Regulations 2026, Note: Explanatory note


(This note is not part of the Regulations)
These Regulations relate to the levy arrangements that support the Contracts for Difference scheme established under Chapter 2 of Part 2 of the Energy Act 2013 (c. 32) (“the 2013 Act”). Government funds can be paid into the scheme to reduce the amount of the levy. These Regulations amend the Contracts for Difference (Electricity Supplier Obligations) Regulations 2014 so as to broaden the circumstances in which that can happen. They respond to a decision to provide financial assistance under section 13 of the Energy Prices Act 2022 via the CFD counterparty (the powers conferred by section 13 remain exercisable by virtue of S.I. 2026/979).
Regulation 3 removes wording which previously meant that only Government funds paid under the power in section 154(2)(b) of the 2013 Act could be taken into account in levy calculations.
Regulation 4 removes the rule under which Government funds paid into the scheme had to be paid back three quarters later. This means that the amount (if any) that the CFD counterparty has to repay depends on the terms on which the Government funds were provided and regulation 5 makes consequential changes in relation to the determination of the interim levy rate.
A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sector is foreseen.

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Source: https://www.legislation.gov.uk/uksi/2026/1151/note (the official version)
Page: https://openlegislation.uk/contracts-for-difference-electricity-supplier-obligations-amendment-regulations-2026/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.

