Regulation 18 Calculation of discountI1

The reduction (in p/kWh) in the supply price under a supply contract to be applied pursuant to the scheme in respect of that contract for any period (“P”) (“the discount”) is calculated as—

$$\underset{}{\max }\left\{\underset{}{\min }\left(\mathrm{BD},\mathrm{M>D},\left(\mathrm{SP}-\mathrm{MP}\right)\right),0\right\}$$

Where—

• BD is the base discount in respect of that supply contract for P;

• MD is—

1. (a)

   in relation to a variable price contract or a flexible price contract, the maximum discount;

2. (b)

   in relation to a fixed price contract—

   1. (i)

      except as provided in sub-paragraph (ii), the base discount;

   2. (ii)

      if the price-fix date is later than the date the contract is entered into, in respect of any period before the price-fix date, the maximum discount;

   SP is the supply price for P;

   MP is the minimum supply price.