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Paragraph 2 Method of calculating hypothetical cost of purchasing certain electricity

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

The method of calculating what would have been the total cost to each public electricity supplier P of purchasing the electricity mentioned in paragraph 1 if that electricity had been generated by a fossil fuel generating station (which, when combined with the like total cost attributable to every other public electricity supplier, is expressed as By in paragraph 2 of Schedule 2) is given by the formula–

B yP = Σn Σj ( Ynj × Znj )+ Σn [ ( V n - Σj Ynj )× ( Σj Znj Wn )]