Regulation 29 Calculation of discountI1

For the purposes of these Regulations, “the discount” means 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.

In the case of a general supply contract or a QHS supply contract, the discount is calculated as follows—

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

Where—

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

• MD is the maximum discount applicable to that supply contract;

• SP is the supply price for the period;

• MP is the minimum supply price applicable to that supply contract.

In the case of an ETII supply contract the discount is calculated as follows—

$$0.3\left(\underset{}{\max }\left\{\underset{}{\min }\left(\mathrm{BD},\mathrm{MD},\left(\mathrm{SP}-\mathrm{MP}\right)\right),0\right\}\right)+0.7\left(\underset{}{\max }\left\{\underset{}{\min }\left(\mathrm{ID}, \mathrm{IMB},\left(\mathrm{SP}-\mathrm{RMP}\right)\right),0\right\}\right)$$

Where—

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

• MD is the maximum discount applicable to that supply contract);

• SP is the supply price for the period;

• MP is the minimum supply price applicable to that supply contract;

• ID is the increased discount in respect of that supply contract for the period;

• IMD is the maximum discount applicable to an ETII supply contract plus the MD increment;

• RMP is the minimum supply price applicable to an ETII supply contract less the GSP decrement.