Regulation 27 Deductions: general

(1)

If any amount which a licensed supplier is entitled to deduct pursuant to–

(a)

paragraph (5)(b) of regulation 14;

(b)

paragraph (5) of regulation 15;

(c)

paragraph (4) of regulation 24;

(d)

paragraph (4) of regulation 25; or

(e)

paragraph (b) of regulation 26;

is greater than the amount of the next payment due from him under paragraph (3) of regulation 11–

(i)

the supplier need not make that next payment; and

(ii)

he may deduct the balance of the amount which he is entitled to deduct (together with an amount in respect of interest in accordance with regulation 29(2)) from the next succeeding payment due from him under paragraph (3) of regulation 11.

(2)

Paragraph (1) shall apply in relation to successive payments due under paragraph (3) of regulation 11 until–

(a)

the licensed supplier has deducted the whole of the amount first mentioned in paragraph (1); or

(b)

the supplier has served notice on the Director that he does not intend to make any further deductions in respect of that amount.

(3)

A licensed supplier who in pursuance of this regulation does not make a payment in accordance with regulation 11 in respect of a qualifying month shall nevertheless furnish to the Director a statement in relation to that month in accordance with regulation 12, save that such statement shall set out the manner in which the supplier has calculated the amount of the payment which he would have paid but for this regulation.