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Regulation 20 Calculation of non-core spending obligation

Original text. Later amendments are not shown.

(1)

The non-core spending obligation of a compulsory scheme electricity supplier (“C”) for a scheme year, subject to any adjustments under regulation 21 or 22, is C’s obligation percentage of the aggregate non-core spending obligation for the scheme year.

(2)

For the purposes of paragraph (1), “the obligation percentage” in relation to C and a scheme year is—

X Y   × 100 %

where—

  1. (a)

    “X” is the relevant number of GB domestic customers, and

  2. (b)

    “Y” is the total number of GB domestic customers of—

    1. (i)

      all compulsory scheme electricity suppliers, and

    2. (ii)

      all scheme gas suppliers who are connected to a compulsory scheme electricity supplier.

(3)

For the purposes of paragraph (2)(a), the relevant number of GB domestic customers is—

(a)

if C is connected to one or more scheme gas suppliers but is not connected to any other compulsory scheme electricity suppliers, the combined number of GB domestic customers of C and its connected scheme gas suppliers;

(b)

if C is connected to one or more scheme gas suppliers and to one or more other compulsory scheme electricity suppliers, a number equal to C% of (CE + CG) where—

(i)

“C%” is C’s number of GB domestic customers as a percentage of CE;

(ii)

“CE” is the combined number of—

(aa)

C’s number of GB domestic customers, and

(bb)

the number of GB domestic customers of C’s connected compulsory scheme electricity suppliers;

(iii)

“CG” is the number of GB domestic customers of C’s connected scheme gas suppliers;

(c)

otherwise, C’s number of GB domestic customers.

(4)

For the purposes of paragraphs (2) and (3)—

(a)

a reference to a supplier’s number of GB domestic customers is a reference to the supplier’s number of GB domestic customers on 31st December preceding the start of the scheme year;

(b)

a supplier is to be treated as connected to another supplier only if they were connected on that date.

(5)

In this regulation “relevant supplier” means—

(a)

in relation to scheme year 16, a compulsory scheme electricity supplier (within the meaning given in regulation 6(2) of the 2022 Regulations) in relation to scheme year 15;

(b)

in relation to any other scheme year, a compulsory scheme electricity supplier in relation to the preceding scheme year.