# The Power Purchase Agreement Scheme Regulations 2014, Regulation 19: Calculations required for purposes of this Part

Extent: E+W+S

(1) Before calculating the annual levelisation payment under regulation 20 in respect of each licensed supplier (“A”) in respect of an OLR year, the Authority must make the determinations in relation to A which are required by paragraphs (2) to (5).
(2) The amount of A’s “OLR contribution” in respect of an OLR year is to be determined as being the sum of all amounts which, in respect of each BPPA for which A is the OLR, are calculated by applying the formula V×MF, where—
(a) V is the volume of electrical output of the electricity generator provided to the OLR under the BPPA in any period falling within the OLR year during which the BPPA is in force; and
(b) MF is the amount of the management fee which is payable to the OLR under the BPPA during the first 12 months for which the BPPA is in force, expressed as an amount for each megawatt hour of electricity purchased by the OLR.
(3) The amount of A’s “adjusted OLR contribution” in respect of an OLR year is to be determined by taking the amount (if any) determined for A under paragraph (2) and adjusting it by—
(a) adding the amounts of any periodic levelisation payments and mutualisation payments made by A in respect of that OLR year; and
(b) subtracting the amounts of any periodic levelisation payments and mutualisation distributions received by A in respect of that OLR year.
(4) The “market share” of A in an OLR year is to be determined by expressing the relevant amount of electricity supplied by A in that OLR year as a percentage of the electricity supply market of Great Britain, where—
(a) “the relevant amount of electricity supplied by A” means the amount of electricity supplied by A to customers in Great Britain;
(b) “the electricity supply market of Great Britain” means the amount of electricity supplied by all licensed suppliers to customers in Great Britain; and
(c) “customer” has the same meaning as in the standard conditions of a supply licence.
(5) The “market share OLR contribution” of A in respect of an OLR year is to be determined by—
(a) calculating the sum of the amounts determined under paragraph (2) in relation to all licensed suppliers; and
(b) multiplying it by the percentage determined in respect of A under paragraph (4).

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Source: https://www.legislation.gov.uk/uksi/2014/2511/regulation/19 (the official version)
Page: https://openlegislation.uk/power-purchase-agreement-scheme-regulations-2014/regulation-19
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.