Regulation 39 Adjustment of discountI1

subject to paragraph (d), the “arrangement benefit” is the amount determined as—

Where for that period—

1. (b)

   the “unit arrangement benefit” (expressed in p/kWh) is the arrangement benefit (expressed in pence) divided by the supply quantity in respect of that period;

2. (c)

   the reference wholesale price applicable to the supply contract in that period is determined as—

   $$\left\{\mathrm{RWP\text{'}}-\mathrm{UAB}\right\}$$

   Where—

   1. (i)

      RWP’ is the price that would otherwise be determined (under regulation 10 or in accordance with regulation 11) as the reference wholesale price;

   2. (ii)

      UAB is the unit arrangement benefit;

   1. (d)

      in relation to a variable price contract, if the term {CFE – EFE} in paragraph (a) is negative, the arrangement benefit in respect of that period is zero.

   1. (e)

      F1on and after the discount duties end date for a supplier, sub-paragraph (d) is to be read in relation to that supplier as though the words “in relation to a variable price contract” were omitted;

   1. (f)

      sub-paragraph (e) does not apply to a supplier in relation to energy—

      1. (i)

         in respect of which the supplier has billed the customer before the discount duties end date,

      2. (ii)

         supplied in a billing period in respect of which the supplier has not billed the customer before the discount duties end date, or

      3. (iii)

         in respect of which an unreasonable delay or other failure by the supplier has led to it not billing the customer for the energy accurately or at all before the discount duties end date;

   1. (g)

      in sub-paragraphs (e) and (f), “discount duties end date” has the same meaning as in regulation 19(3A).

the supplier must, as soon as practicable after receiving the customer’s declaration under regulation 38(1)(b), give notice to the customer of each periodic declaration date and the declaration period for each such date;

the customer must, as soon as practicable and in any event within 14 days after each periodic declaration date, determine and send to the supplier a declaration of the amount of the arrangement benefit in respect of the relevant declaration period, unless the arrangement benefit is less than £100 per day of the declaration period;

the supplier must, on the basis of the arrangement benefit declared in each such declaration—