OpenLegislation

Paragraph 2 Method of calculating actual cost of generating certain electricity

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

The method of calculating the total cost to each public electricity supplier P of generating electricity supplied by him during qualifying months (n = any qualifying month in period y) which was generated in pursuance of qualifying arrangements (which, when combined with the like total cost attributable to every other public electricity supplier, is expressed as AAy in paragraph 2 of Schedule 2) is given by the formula—

AAyp=∑n(Sn+Un)

where—

  • Σ n signifies the summation over all the qualifying months within the period y;

  • S& subn; is the aggregate of the amounts which are due or deemed to be due from supplier P under his qualifying arrangements to the generator in respect of electricity which was generated by him in pursuance of such arrangements and which was supplied in month n (whether or not such amounts have been paid) excluding any advance or deferred payments;

  • U& subn;is the aggregate of any deferred payments supplier P is required or deemed to be required under his qualifying arrangements to make to the generator in month n;

  • together with interest as provided for in the correction factor Ky in Schedule 2.