# The Warm Home Discount (England and Wales) Regulations 2026, Regulation 21: Adjustment of non-core spending obligation: scheme year 16


(1) The adjustments that must be made to the non-core spending obligation for scheme year 16 (“O”) of a compulsory scheme electricity supplier (“C”) are as follows.
(2) O must be adjusted in accordance with paragraph (3) or (4) if I is less than or exceeds S where—
(a) “I” is the amount of spending incurred by C under Part 4 of the 2022 Regulations in scheme year 15 (as determined by the Authority in accordance with regulation 27 of those Regulations);
(b) “S” is C’s non-core spending obligation under Part 4 of the 2022 Regulations for scheme year 15, as adjusted (where required) in accordance with regulation 19 of those Regulations.
(3) If I is less than S, O must be adjusted by adding (S − I).
(4) If I exceeds S, O must be adjusted by subtracting the lesser of—
(a) (I − S), and
(b) the relevant amount.
(5) For the purposes of paragraph (4) “the relevant amount” is—
(a) 5% of S, or
(b) where C notified the Authority of its intention to meet all or part of a failed supplier’s non-core spending obligation in accordance with regulation 29 of the 2022 Regulations in scheme year 15, 10% of S.
(6) Whether or not an adjustment is made under paragraph (2), O must be adjusted by adding an amount equal to the undelivered rebate amount.
(7) For the purposes of paragraph (6) “the undelivered rebate amount” is £150 multiplied by the number of prescribed rebates as stated in any notification made by C under regulation 12(8) of the 2022 Regulations.

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Source: https://www.legislation.gov.uk/ukdsi/2026/9780348279085/regulation/21 (the official version)
Page: https://openlegislation.uk/draft-warm-home-discount-england-and-wales-regulations-2026/regulation-21
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.