Regulation 14 Adjustments for banking and borrowing

(1)

In scheme years 2, 3 and 4, if the amount of spending incurred under this Part (as determined by the Authority in accordance with regulation 29(d)) by a compulsory scheme electricity supplier in the preceding scheme year (“D_t-1”) is greater or less than the supplier’s non-core spending obligation for the preceding scheme year (“S_t-1”), the Authority must adjust the supplier’s non-core spending obligation for the current scheme year (“S”) in accordance with paragraphs (2) and (3).

(2)

If D_t-1 is less than S_t-1, S is to be adjusted by adding (S_t-1 – D_t-1).

(3)

If D_t-1 is greater than S_t-1, S is to be adjusted by subtracting—

(a)

(D_t-1 – S_t-1), unless sub-paragraph (b) applies ; or

(b)

1% of S_t-1, if the amount determined under sub-paragraph (a) is greater than 1% of S_t-1.

(4)

The Authority must notify each compulsory scheme electricity supplier by 30th September in scheme years 2, 3 and 4—

(a)

whether any adjustment has been made under this regulation to its non-core spending obligation for that scheme year; and

(b)

if so, the adjusted amount of the supplier’s non-core spending obligation.