OpenLegislation

Explanatory note

Original text. Later amendments are not shown.

(This note is not part of the Regulations)

These Regulations provide for the continuation in Scotland of the scheme to reduce fuel poverty established by the Warm Home Discount Regulations 2011 (“the Scheme”). These Regulations re-enact with amendments the provisions made by those Regulations to continue the Scheme in Scotland until 31st March 2026. The Scheme will continue to be administered and enforced by the Gas and Electricity Markets Authority (“the Authority”).

The Scheme continues to place obligations on electricity suppliers (“compulsory scheme electricity suppliers”) who have, or are part of a group of electricity or gas supply companies which has, at least the specified number of domestic customers to incur spending in each scheme year on the provision of benefits to customers in or at risk of fuel poverty. For the scheme year which begins when these Regulations come into force, the specified number of domestic customers is 50,000, and for later scheme years it is 1,000. “Scheme year” is defined in regulation 3 of the Regulations.

Part 3 requires compulsory scheme electricity suppliers, and other electricity suppliers who opt into this Part, to provide rebates of £150 to customers specified by the Secretary of State (“core group customers”). A person can only be specified as a core group customer if the person appears to the Secretary of State—

(a)

to be the owner or occupier of domestic premises in Scotland at which the person is supplied with electricity or gas wholly or mainly for domestic purposes;

(b)

to occupy those premises as their sole or main residence; and

(c)

to be, or, where the person lives with their partner, to be the partner of a person, in receipt of state pension credit guarantee credit.

Specific provision is made to enable persons who would ordinarily occupy premises as their sole or main residence but are in hospital, a care home or a hospice temporarily to be treated as continuing to occupy the relevant premises (see regulation 2 of the Regulations).

Part 4 requires compulsory scheme electricity suppliers to incur other spending for the purposes of reducing fuel poverty. Chapter 1 provides for the calculation, and adjustment, of the amount of spending that suppliers must incur under this Part. Chapter 2 provides for the types of spending which must or may be incurred (broader group customers (Chapter 3), industry initiatives (Chapter 4) and specified activities (Chapter 5)) and the amounts which may or must be incurred on the various types of spending.

Part 5 contains supplementary provisions about procedure for matters required to be approved by the Authority, determination by the Authority of the amounts spent by suppliers, the provision of information to the Authority by suppliers and the provision of information by the Authority to the Secretary of State.

Part 6 makes provision for reviews of the Scheme by the Secretary of State.

Part 7 contains consequential provisions.

A full impact assessment has not been produced for this instrument. An analysis of the effect that this instrument will have on the costs of business and the public sector is available at https://www.gov.uk/government/publications. Paper copies can be obtained from the Warm Home Discount Team, Department for Business, Energy and Industrial Strategy, 1 Victoria Street, London SW1H 0ET.