Explanatory note

These Regulations make provision for pass-through requirements in relation to the application scheme for Non-Domestic Alternative Fuel Payment in England and Wales, Scotland and Northern Ireland. Assistance is provided under “scheme agreements”, which are contracts formed between the Secretary of State and a “relevant intermediary” (defined in regulation 2) when the relevant intermediary accepts that it will be bound by the “scheme terms”. Amongst other things, the scheme terms set out the criteria that must be met to receive assistance.

Pass-through requirements are imposed on a relevant intermediary and establish that they must pass-through a “scheme benefit” (defined in regulation 2) to an “end user” (defined in regulation 2) to whom energy or energy products (or both) have been made available. These Regulations apply in respect of relevant intermediaries other than those providing certain types of hospitality accommodation (see the definition of “excluded person” under these Regulations).

Regulation 3 establishes the requirement for a relevant intermediary to pass-through a just and reasonable amount of the scheme benefit provided to it to each of its end users.

Regulation 4 provides for the calculation of the pass-through amount and sets out the way in which relevant intermediaries are to determine what is a just and reasonable amount for the purposes of regulation 3.

Regulation 5 sets out the information which a relevant intermediary is required to provide to each of its end users about the scheme benefit provided to it, the amount or proportion it intends to provide to the end user together with supporting details about how it has calculated that this is a just and reasonable amount.

Regulation 6 makes provision about the way in which the pass-through is to be given effect including that it must be provided to the end user as soon as reasonably practicable after the scheme benefit has been provided to the relevant intermediary.

Regulation 7 provides for unpaid pass-through amounts to be recoverable from the relevant intermediary by the end user as a civil debt.

A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sector is foreseen.