# The Energy Act 2004 (Assistance for Areas with High Distribution Costs) Order 2005, Paragraph 4


For the purposes of paragraph 1 above, for the first relevant year of the administration for areas with high distribution costs scheme, the correction amount shall have the value zero and for all subsequent relevant years shall have the value derived from the following formula:
HBKt=(HBCt-1-HBMt-1)(1+It100) where
HBCt−1
means the actual income from payments received from authorised suppliers pursuant to standard condition C21 (Assistance for areas with high distribution costs scheme: payments from authorised suppliers), excluding an amount for interest on payments, using the base interest rate in relation to the relevant year t-1.
HBMt−1
means the total scheme amount in relation to the relevant year t-1.
It
represents the base interest rate in relation to the relevant year t as of the date upon which such calculation under paragraph 1 above is conducted.

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Source: https://www.legislation.gov.uk/uksi/2005/528/schedule/6/paragraph/4 (the official version)
Page: https://openlegislation.uk/energy-act-2004-assistance-for-areas-with-high-distribution-costs-order-2005/schedule-6/paragraph-4
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.