Explanatory note

These Regulations make provision for the pass-through requirement in relation to the Energy Bills Discount Scheme (EBDS) in England and Wales, Scotland and Northern Ireland. The pass-through requirement is imposed on a person who supplies and charges for the supply of heating or hot water to an end user through a heat network using energy in respect of which the person has been provided a scheme benefit (“intermediary”). It requires the intermediary to pass on the benefits of the EBDS to its end users. The Regulations also deal with adjustments to pass-through amounts which may be needed if a supply redetermination event occurs under the EBDS Regulations or the NI EBDS Regulations.

Regulation 3 makes provision about energy price support provided by the EBDS. This is defined as a “scheme benefit”.

Regulation 4 requires an intermediary who has been provided with a scheme benefit to notify each of its end users in writing that it has been provided with the benefit.

Regulation 5 imposes a requirement on an intermediary to secure that a scheme benefit provided to it is passed on to its end users as soon as reasonably practicable after it has been provided with the scheme benefit. If not all of the scheme benefit is being passed on to the end users, intermediaries are required to pass on a just and reasonable amount of the benefit to each of its end users.

Regulation 6 defines “pass-through amount” and provides for methods of calculating the amount and determining what is a just and reasonable pass-through amount.

Regulation 7 requires intermediaries to provide billing information to end users.

Regulation 8 provides for the end user to recover unpaid pass-through amounts from the intermediary as a civil debt.

Regulation 9 establishes a consumer redress scheme in England and Wales and Scotland for end users of intermediaries.

Regulation 10 provides for enforcement of the requirement to be a member of the redress scheme.

Regulation 11 provides for the investigation of complaints relating to the operation of these Regulations in Northern Ireland by the General Consumer Council of Northern Ireland.

Regulation 12 disapplies the requirement to consult on guidance on civil sanctions to be issued by an authorised person under the Heat Network (Metering and Billing) Regulations 2014.

A full impact assessment of the effect of EBDS, including the related pass-through requirements, will have on the costs of business and the voluntary sector is available from the Department for Energy Security and Net Zero, 1 Victoria Street, London, SW1H 0ET and is published with the Explanatory Memorandum alongside the instrument on www.legislation.gov.uk

.