{
  "url": "https://openlegislation.uk/contracts-for-difference-electricity-supplier-obligations-regulations-2014/regulation-2",
  "json_url": "https://openlegislation.uk/contracts-for-difference-electricity-supplier-obligations-regulations-2014/regulation-2.json",
  "legislation": "uksi/2014/2014",
  "legislation_title": "The Contracts for Difference (Electricity Supplier Obligations) Regulations 2014",
  "legislation_url": "https://openlegislation.uk/contracts-for-difference-electricity-supplier-obligations-regulations-2014",
  "path": "regulation/2",
  "kind": "regulation",
  "number": "2",
  "heading": "Interpretation",
  "text": "(1) In these Regulations—\n“absolute value”, in relation to an amount, means the magnitude of that amount without regard to whether that amount is positive or negative;\n“the Act” means the Energy Act 2013;\n“the Balancing and Settlement Code” means the code for the governance of electricity balancing and settlement in Great Britain , as amended from time to time, which is maintained in accordance with the conditions of an electricity system operator licence granted under section 6(1)(da) of the Electricity Act 1989;\n“BM Unit” has the meaning given in the Balancing and Settlement Code (see section X of that code) and “registered” in relation to a BM Unit means registered in accordance with the requirements of section K of the Balancing and Settlement Code;\n“BSC volume allocation run” means any one of the following—\n(a)an Initial Volume Allocation Run,\n(b)an Interim Information Volume Allocation Run,\n(c)a Reconciliation Volume Allocation Run (including a Final Reconciliation Volume Allocation Run or a Post-Final Volume Allocation Run);\n“the BSCCo” means ELEXON Limited (or any successor to that company acting in the capacity of the BSCCo within the meaning given in the Balancing and Settlement Code);\n“CFD counterparty payment” means any payment which the CFD counterparty must make—\n(a)under a CFD;\n(b)under a connected agreement;\n(c) to a CFD party for the purpose of compensating that person in respect of any breach of any duty (however that duty arises) owed to that person by the CFD counterparty which is connected to a CFD or a connected agreement,\nand includes any payment made to a person to whom a benefit under a CFD or connected agreement has been assigned in accordance with the terms of that agreement;\n“CFD party” means a person, other than the CFD counterparty, who is a party to a CFD or connected agreement and is entitled to payments under such an agreement;\n“CFD party payment” means any payment which a CFD party must make to the CFD counterparty—\n(a)under a CFD;\n(b)under a connected agreement,\nand includes a payment made to a person to whom a benefit under a CFD or connected agreement has been assigned in accordance with the terms of that agreement;\n“CFD period contribution” is to be construed in accordance with regulation 3;\n“connected agreement” means any agreement entered into by the CFD counterparty or a CFD party, pursuant to a CFD;\n“EII excluded electricity” has the meaning given in regulation 2(1) of the Excluded Electricity Regulations;\n“electricity supplier” means a person who is the holder of a licence to supply electricity under section 6(1)(d) of the Electricity Act 1989;\n. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n“estimated quarterly obligation period electricity supply”, “estimated quarterly obligation period income”, and “estimated quarterly obligation period payment cost” are to be construed in accordance with regulation 7;\n...\n“Excluded Electricity Regulations” means the Electricity Supplier Obligations (Amendment & Excluded Electricity) Regulations 2015;\n“final reconciliation determination” is to be construed in accordance with regulation 15(2);\n“Final Reconciliation Volume Allocation Run” has the meaning given in the Balancing and Settlement Code (see section U of that code);\n“first operational cost period” means the period beginning on 1st January 2015 and ending on 31st March 2015;\n“Initial Volume Allocation Run” has the meaning given in the Balancing and Settlement Code (see section U of that code);\n“Interim Information Volume Allocation Run” has the meaning given in the Balancing and Settlement Code (see section U of that code);\n“interim rate payment” is to be construed in accordance with regulation 8;\n“investment contract” has the meaning given in Schedule 2 to the Act;\n“letter of credit” means a letter from a person which contains an irrevocable and unconditional authorisation in favour of the CFD counterparty to be paid by that person on demand up to an amount stated in the letter;\n“mutualisation amount” and “mutualisation notice” are to be construed in accordance with regulation 17;\n“operational cost period” means—\n(c)the first operational cost period, or\n(d)any subsequent period beginning on 1st April in a year and ending on 31st March in the following year;\n“Post-Final Volume Allocation Run” has the meaning given in the Balancing and Settlement Code (see section U of that code);\n“quarterly obligation period” means a period of 3 months commencing after 31st March 2015 on 1st April, 1st July, 1st October or 1st January ...;\n“reconciliation determination” and “reconciliation period” are to be construed in accordance with regulation 15(1);\n“Reconciliation Volume Allocation Run” has the meaning given in the Balancing and Settlement Code (see section U of that code);\n“reserve payment” means a payment an electricity supplier is required to make under regulation 11(1);\n“reserve period” means a period beginning with the 13th working day of a quarterly obligation period and ending with the 13th working day of the subsequent quarterly obligation period;\n“SoS funds” means any financial assistance provided by the Secretary of State to the CFD counterparty (under section 154(2)(b) of the Act) for the purposes of making CFD counterparty payments and adjusting payments due from electricity suppliers in accordance with these Regulations;\n“sustainable industry reward” has the meaning given in regulation 2(1) of the Contracts for Difference (Allocation) Regulations 2014 as amended from time to time;\n“total reserve amount” is to be construed in accordance with regulation 10;\n“transport and storage provider” means a person who holds a licence under section 7 of the Energy Act 2023.\n“working day” means a day that is not a Saturday or Sunday, Christmas Day, Good Friday or any day that is a bank holiday in England and Wales under the Banking and Financial Dealings Act 1971 .\n(2) Any reference in these Regulations to an amount of electricity is a reference to that amount expressed in megawatt hours.\n(2A) Any reference in these Regulations to a supply of electricity is a reference to its supply in Great Britain, and “supply” is to be construed in accordance with section 4(4) of the Electricity Act 1989.\n(3) Any reference in these Regulations to an amount to be paid or provided is a reference to that amount expressed in pounds sterling and rounded to the nearest whole penny with any half of a penny being rounded upwards.\n(4) Any reference in these Regulations to a CFD includes a reference to an investment contract which was transferred to the CFD counterparty by virtue of paragraph 16(1) of Schedule 2 to the Act.\n(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n(6) Where more than one person is designated under section 7 of the Act as a CFD counterparty, the Schedule has effect and these Regulations have effect as set out in that Schedule.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Words in reg. 2(1) inserted (1.10.2024) by The Energy Act 2023 (Consequential Amendments) Regulations 2024 (S.I. 2024/706), regs. 1(1), 28(a); S.I. 2024/957, reg. 2(a)"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Words in reg. 2(1) substituted (1.10.2024) by The Energy Act 2023 (Consequential Amendments) Regulations 2024 (S.I. 2024/706), regs. 1(1), 28(b); S.I. 2024/957, reg. 2(a)"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "Words in reg. 2(1) inserted (1.4.2016) by The Electricity Supplier Payments (Amendment) Regulations 2016 (S.I. 2016/363), regs. 1(3), 3(2)"
    },
    {
      "type": "F",
      "label": "F4",
      "text": "Words in reg. 2(1) substituted (1.4.2015) by The Electricity Supplier Obligations (Amendment & Excluded Electricity) Regulations 2015 (S.I. 2015/721), regs. 1(2), 15(2)(a)"
    },
    {
      "type": "F",
      "label": "F5",
      "text": "Words in reg. 2(1) inserted (1.4.2023) by The Electricity Supplier Obligations (Green Excluded Electricity) (Amendment) Regulations 2023 (S.I. 2023/389), regs. 1(2), 2(2)(a)"
    },
    {
      "type": "F",
      "label": "F6",
      "text": "Words in reg. 2(1) omitted (1.4.2015) by virtue of The Electricity Supplier Obligations (Amendment & Excluded Electricity) Regulations 2015 (S.I. 2015/721), regs. 1(2), 15(2)(b)"
    },
    {
      "type": "F",
      "label": "F7",
      "text": "Words in reg. 2(1) omitted (1.4.2023) by virtue of The Electricity Supplier Obligations (Green Excluded Electricity) (Amendment) Regulations 2023 (S.I. 2023/389), regs. 1(2), 2(2)(b)"
    },
    {
      "type": "F",
      "label": "F8",
      "text": "Words in reg. 2(1) inserted (1.4.2015) by The Electricity Supplier Obligations (Amendment & Excluded Electricity) Regulations 2015 (S.I. 2015/721), regs. 1(2), 15(2)(d)"
    },
    {
      "type": "F",
      "label": "F9",
      "text": "Words in reg. 2(1) inserted (1.7.2017) by The Electricity Supplier Payments (Amendment) Regulations 2017 (S.I. 2017/502), regs. 1(2), 4"
    },
    {
      "type": "F",
      "label": "F10",
      "text": "Words in reg. 2(1) omitted (1.4.2015) by virtue of The Electricity Supplier Obligations (Amendment & Excluded Electricity) Regulations 2015 (S.I. 2015/721), regs. 1(2), 15(2)(c)"
    },
    {
      "type": "F",
      "label": "F11",
      "text": "Words in reg. 2(1) inserted (8.7.2020) by The Contracts for Difference (Electricity Supplier Obligations) (Amendment) (Coronavirus) Regulations 2020 (S.I. 2020/709), regs. 1, 2(2)"
    },
    {
      "type": "F",
      "label": "F12",
      "text": "Words in reg. 2(1) inserted (22.7.2025) by The Contracts for Difference (Miscellaneous Amendments) (No. 3) Regulations 2025 (S.I. 2025/903), regs. 1(2), 13"
    },
    {
      "type": "F",
      "label": "F13",
      "text": "Words in reg. 2(1) inserted (12.11.2024) by The Contracts for Difference (Electricity Supplier Obligations) (Amendment) Regulations 2024 (S.I. 2024/1159), regs. 1(2), 3"
    },
    {
      "type": "F",
      "label": "F14",
      "text": "Reg. 2(2A) inserted (1.4.2015) by The Electricity Supplier Obligations (Amendment & Excluded Electricity) Regulations 2015 (S.I. 2015/721), regs. 1(2), 15(3)"
    },
    {
      "type": "F",
      "label": "F15",
      "text": "Reg. 2(5) omitted (1.4.2015) by virtue of The Electricity Supplier Obligations (Amendment & Excluded Electricity) Regulations 2015 (S.I. 2015/721), regs. 1(2), 15(4)"
    },
    {
      "type": "M",
      "label": "M1",
      "text": "1971 c.80."
    }
  ],
  "outstanding_effects": [
    {
      "type": "words omitted",
      "affecting": "uksi/2026/1151",
      "affecting_title": "The Contracts for Difference (Electricity Supplier Obligations) (Amendment) Regulations 2026"
    }
  ],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/2014/2014/regulation/2",
    "retrieved_at": "2026-10-29T00:07:54.667268+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}