Regulation 13 Calculation of non-core spending obligation

(1)

The non-core spending obligation of a compulsory scheme electricity supplier for a scheme year (subject to any adjustment under regulation 14) is the relevant percentage of the aggregate non-core spending obligation for that scheme year.

(2)

The relevant percentage, in relation to a compulsory scheme electricity supplier (“C”) and a scheme year, is $\frac{X \times 100}{Y}$ % where—

(a)

X is C’s number of domestic customers, unless sub-paragraph (b) or (c) applies;

(b)

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

(c)

if C is connected to one or more scheme gas suppliers and to one or more other compulsory scheme electricity suppliers, X is a number equal to Z% of the combined number of domestic customers of C and its connected scheme gas suppliers and connected compulsory scheme electricity suppliers; and

(d)

Y is the total number of domestic customers of all—

(i)

compulsory scheme electricity suppliers; and

(ii)

scheme gas suppliers which are connected to a compulsory scheme electricity supplier.

(3)

In paragraph (2)(c), “Z%” is C’s number of domestic customers as a percentage of the combined number of domestic customers of C and its connected compulsory scheme electricity suppliers.

(4)

In paragraphs (2) and (3)—

(a)

references to a supplier’s number of domestic customers are to the supplier’s number of domestic customers on the 31st December preceding the start of the scheme year; and

(b)

a supplier is to be treated as connected to another supplier if those suppliers were connected on the 31st December preceding the start of the scheme year (but not otherwise).