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Regulation 21 Legacy spending

Original text. Later amendments are not shown.

(1)

Subject to regulation 15(4) and to paragraph (3), a compulsory scheme electricity supplier which is a relevant supplier may count towards its non-core spending obligation for a scheme year—

(a)

the amount of any legacy spending incurred by the compulsory scheme electricity supplier in the scheme year; and

(b)

if the compulsory scheme electricity supplier is connected to a scheme gas supplier which is a relevant supplier, the amount of any legacy spending incurred by the scheme gas supplier, to the extent permitted by regulation 16.

(2)

The amount of legacy spending incurred by a relevant supplier in a scheme year is the sum of—

(a)

the amount (excluding Value Added Tax) of relevant benefits in the form of rebates; and

(b)

the value of relevant benefits in the form of discounted tariffs (excluding any reduction in the amount of Value Added Tax paid by eligible customers as a result of the provision of those tariffs),

provided to eligible customers by that supplier in the scheme year.

(3)

A compulsory scheme electricity supplier may not in any scheme year count towards its non-core spending obligation the amount or value of relevant benefits provided to a number of eligible customers exceeding the number specified in paragraph (4).

(4)

The number referred to in paragraph (3) is the number of eligible customers who were provided with a financial benefit in the period 1st April 2010 to 31st March 2011 under a voluntary commitment by—

(a)

the compulsory scheme electricity supplier; or

(b)

a connected scheme gas supplier.