Explanatory note

These Regulations amend the Energy Bill Relief Scheme Regulations 2022 (S.I. 2022/1100) (the “EBRS Regulations”) and the Energy Bills Discount Scheme Regulations 2023 (S.I. 2023/453) (the “EBDS Regulations”). The amendments achieve the same effects in relation to both Regulations. These Regulations also amend the Energy Prices Act 2022 (c. 44).

Both the EBRS Regulations and the EBDS Regulations provide for a date (“the reconciliation run-off date”) to be determined in respect of an energy supplier after which the discount recovery provisions no longer apply. These amending Regulations provide that after the later of the reconciliation run-off date or the date these Regulations come into force, an energy supplier is no longer generally under duties to provide discount to customers (regulation 3 in relation to the EBRS Regulations, regulation 7 in relation to the EBDS Regulations). However these discount duties continue to apply in relation to energy: (1) that was billed previously when the discount duties applied; (2) that was supplied in a billing period that the supplier has not issued a bill for before the discount duties ended; or (3) in respect of which unreasonable delay or other failure by the supplier has led to it not billing the customer for the energy accurately or at all before the discount duties ended.

The duty to discount is also similarly removed from a supplier where the customer has entered into arrangements which increased its exposure to wholesale energy prices (regulations 4 and 8 respectively). Again the duty continues to apply in certain specified cases, the same as those provided in regulations 3 and 7.

Where a customer disagrees with certain determinations made by a supplier, the customer or supplier may refer the matter to the Secretary of State for determination. However any matter which the supplier is required to determine as a result of the changes made by these Regulations is not referable to the Secretary of State (regulations 5 and 9 respectively).

Regulation 10 substitutes a period of 26 months for 6 months in paragraph 7(1) of Schedule 5 to the Energy Prices Act 2022. The effect is to enable the Department for the Economy in Northern Ireland to exercise certain specified powers in the Act for the duration of the longer period. This includes power to amend the Energy Bill Relief Scheme (Northern Ireland) Regulations 2022 (S.I. 2022/1106) and the Energy Bills Discount Scheme (Northern Ireland) Regulations 2023 (S.I. 2023/454), which were both made under section 11 of the Act.

A de minimis impact assessment of the effect that this instrument will have is available from the Department for Energy Security and Net Zero, 3-8 Whitehall Place, London, SW1A 2HH.