Regulation 26 Industry initiatives

(1)

Subject to regulation 15(4) and to paragraphs (2) and (3), a compulsory scheme electricity supplier may in respect of any scheme year count towards its non-core spending obligation spending (excluding Value Added Tax) incurred in that scheme year on an activity of a kind listed in the first column of the table in Schedule 4 (an “industry initiative”) by—

(a)

that supplier; or

(b)

any connected scheme gas supplier, to the extent permitted by regulation 16.

(2)

Spending on industry initiatives may not count towards a compulsory scheme electricity supplier’s non-core spending obligation if it—

(a)

is incurred pursuant to a requirement in any other enactment, or in an electricity supply or gas supply licence;

(b)

is counted by a scheme supplier towards a spending obligation or target imposed by any other enactment, or by an electricity supply or gas supply licence; or

(c)

falls within an exception in the second column of the table in Schedule 4.

(3)

Paragraph (1) only applies in relation to spending on an industry initiative if—

(a)

the industry initiative has been notified to the Authority under regulation 27; and

(b)

either—

(i)

the spending is incurred after the Authority has approved the industry initiative; or

(ii)

in scheme year 1, the spending is incurred before the Authority has decided whether to approve the industry initiative, and the Authority subsequently approves it.