Regulation 17 Calculation of base discountI1

Subject to paragraph (3), the “base discount” in respect of a supply contract for any period (“P”) is determined as—

$$\left(\mathrm{RWP}-\mathrm{GSP}\right)$$

Where—

• RWP is the reference wholesale price applicable to that supply contract for P, subject to paragraph (4);

• GSP is the government supported price

The Secretary of State must determine the base discounts for fixed price contracts and variable price contracts, and publish them with the corresponding reference wholesale prices.

Where regulation 48 applies, the base discount is reduced in accordance with that regulation.

Where regulation 39(1) applies, the reference wholesale price is determined under sub-paragraph (c) of that regulation.