Regulation 3 The supplier obligation

(1)

Every electricity supplier who supplies electricity during a quarterly obligation period must, subject to paragraph (3), pay a CFD period contribution to the CFD counterparty in respect of that period.

(2)

The CFD period contribution in relation to a supplier in respect of a quarterly obligation period is the sum of—

(a)

CFD daily contributions for each day on which that supplier supplies electricity in that period calculated in accordance with regulation 4; and

(b)

a CFD quarterly contribution for that period calculated in accordance with regulation 5.

(3)

Where the amount of a supplier’s CFD period contribution in respect of a quarterly obligation period is a negative number—

(a)

the amount the supplier must pay under paragraph (1) in respect of that period is zero; and

(b)

the CFD counterparty must pay the absolute value of that amount to that supplier.

(4)

For the purpose of ensuring that the CFD period contribution is paid—

(a)

an electricity supplier must—

(i)

make interim payments in accordance with regulations 8(1) and 11(1) and, where so required, regulation 14(3),

(ii)

make supplier data reconciliation payments in accordance with regulation 9(2), and

(iii)

make any required reconciliation payments in accordance with regulation 16(3)(a); and

(b)

the CFD counterparty must—

(i)

make counterparty data reconciliation payments in accordance with regulation 9(3), and

(ii)

make any required reconciliation payments in accordance with regulation 16(3)(b).