# The Energy Act 2004 (Assistance for Areas with High Distribution Costs) (Amendment) Order 2023, Paragraph 1


(1) Condition C20 (assistance for areas with high distribution costs scheme: restriction on revenue) of the standard conditions of the licences of authorised transmitters is modified as follows.
(2) For paragraph 1, substitute—
“1 The licensee must use its best endeavours to ensure that, in each relevant year, the revenue derived by the licensee from the assistance for areas with high distribution costs scheme activity does not exceed the assistance for areas with high distribution costs scheme amount for that relevant year as calculated in accordance with the following formula:
H B M t = A t + S A t + ( H B O C t - H B K t ) where—
HBMt
represents the assistance for areas with high distribution costs scheme amount in relation to the relevant year t.
At
represents the assistance amount in relation to the relevant year t.
SAt
represents the Shetland assistance amount in relation to the relevant year t.
HBOCt
represents the administration allowance in relation to the relevant year t.
HBKt
represents the correction amount in relation to the relevant year t.
”.
(3) In paragraph 2—
(a) in the words before the formula, for the words from “for the first relevant year” to “and for each subsequent relevant year” substitute “for each relevant year”;
(b) in the formula, for “RPIt” substitute CPIHt”;
(c) in the definitions of the terms used in the formula—
(i) omit the definition of “RPIt”;
(ii) after the definition of “At-1” insert—
“
“CPIHt
means the percentage change (whether of a positive or a negative value) in the arithmetic average of the CPIH figures published or determined with respect to each of the six months May to October (both inclusive) in relation to the relevant year t-1 and that are published or determined with respect to the same months in relation to the relevant year t-2.
”.
(4) In paragraph 2A—
(a) in the words before the formula, for the words from “for the relevant year” to “and for each subsequent relevant year” substitute “for each relevant year”;
(b) in the formula, for “RPIt” substitute “CPIHt”;
(c) in the definitions of the terms used in the formula, for “RPIt” substitute “CPIHt”.
(5) In paragraph 3—
(a) in the words before the formula, for the words from “for the first relevant year” to “and for each subsequent relevant year,” substitute “for each relevant year”;
(b) in the formula, for “RPIt” substitute “CPIHt”;
(c) in the definitions of the terms used in the formula—
(i) omit the definition of “RPIt”;
(ii) after the definition of “HBOCt-1”, insert—
“
CPIHt
has the meaning given in paragraph 2.
”.
(6) In paragraph 4—
(a) in the words before the formula, for the words from “for the first relevant year” to “and for all subsequent relevant years” substitute “for each relevant year the correction amount”;
(b) for the definition of “HBCt-1” substitute—
“
“HBCt-1”
means the total income from payments received from authorised suppliers during the relevant year t-1 pursuant to standard condition C21, excluding any interest on late payments.
”.
(7) After paragraph 4 insert—
“4A For the purposes of paragraphs 2 to 4, where the relevant year t-1 is the year beginning on 1 April 2022, the following amounts in relation to that year are the amounts calculated in accordance with this condition as in force immediately before 1 April 2023—
(a) the assistance amount;
(b) the Shetland assistance amount;
(c) the administration allowance;
(d) the assistance for areas with high distribution costs scheme amount.”.
(8) In paragraph 5—
(a) in the definition of “administration allowance”, omit “specified in or”;
(b) in the definition of “assistance amount”, omit “specified in or”;
(c) in the definition of “correction amount”, omit “specified in or”;
(d) at the appropriate place insert—
“
“CPIH”
means the consumer prices index including owner occupiers’ housing costs (all items) published by the Office for National Statistics.
”;
(e) in the definition of “Shetland assistance amount”—
(i) omit “beginning on or after 1 April 2021”;
(ii) omit “specified in or”.

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Source: https://www.legislation.gov.uk/uksi/2023/43/schedule/2/paragraph/1 (the official version)
Page: https://openlegislation.uk/energy-act-2004-assistance-for-areas-with-high-distribution-costs-amendment-order-2023/schedule-2/paragraph-1
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.