Regulation 13 Treatment of fixed price contracts at end of termI1
England, Wales and Scotland
Paragraphs (2) and (3) apply where, as a result of a relevant amendment of a fixed price contract—
the contracted wholesale price is fixed under the new contract for any period starting at or after the end of the original fixed term;
at any time before the end of the original fixed term, the contracted wholesale price fixed under the new contract differs from the contracted wholesale price under the original contract.
In a case within paragraph (1)(a), subject to paragraph (3), the new contract is to be treated for the purposes of the scheme as a new fixed price contract for which the price-fix date is determined by reference to the time when the relevant amendment was made.
In a case within paragraph (1)(b), until the end of the original fixed term, the base discount applicable in respect of the new contract is the base discount that was applicable to the original contract.
Where with effect from the end of the original fixed term—
a supply contract continues in force, and
the contracted wholesale price is not fixed for any period after the original fixed term,
the contract is to be treated as a variable price contract entered into at the time of any relevant amendment to it or (in the absence of any relevant amendment) at the end of the original fixed term.
In this regulation—
the “original contract” is the fixed price contract before the relevant amendment;
the “original fixed term” is the term for which the contracted wholesale price was fixed under the original contract;
the “new contract” is the contract which results from the relevant amendment;
a “relevant amendment” is any amendment, extension or variation of the fixed price contract, or the entry by the contract parties into another contract which replaces the fixed price contract, or any other arrangement between the contract parties which has a similar effect.
Annotations
Commencement
- I1
Reg. 13 in force at 1.11.2022, see reg. 1(1)