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Paragraph 3 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:

(1)

The method of calculating what would have been the total cost (in pounds) to each public electricity supplier P of purchasing the electricity mentioned in either paragraph 1 or paragraph 2 of this Schedule 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—

Byp = ∑n ( Wn × Vn )100.
(2)

In the formula specified in sub-paragraph (1) above—

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

  • Wn is the reference price (in pence per unit) in respect of the electricity referred to in paragraph 1 or, as the case may be, paragraph 2 of this Schedule within month n, calculated in accordance with paragraph 5 except during a security period, when it shall be the price determined as the Director, after consultation with licensed suppliers, sees fit; and

  • Vn is the number of units of the electricity referred to in paragraph 1 or, as the case may be, paragraph 2 of this Schedule within month n.