Regulation 25 Trigger for OLR mutualisationI1I2
England, Wales and Scotland
The Secretary of State must determine in respect of each OLR year a lower limit for the unpaid amounts referred to in paragraph (2)(b) that will trigger a mutualisation (“the mutualisation lower limit”).
Regulation 26 applies if—
one or more licensed suppliers fail to make to the Authority the whole or part of a periodic levelisation payment within 5 days of the date on which it is due (“the due date”); and
after 5 days following the due date, the total of unpaid amounts is equal to or greater than the mutualisation lower limit.
In determining the mutualisation lower limit in respect of any OLR year under paragraph (1), the Secretary of State must have regard to—
where the total of unpaid amounts referred to in paragraph (2)(b) falls below the limit determined for that year, the likely effect on any licensed supplier which has entered into a BPPA with an electricity generator of deferring payment under regulation 23(5) of amounts of periodic levelisation payment to which the licensed supplier is entitled; and
where the total of unpaid amounts referred to in paragraph (2)(b) is equal to or above the limit determined for that year, the likely effect on all licensed suppliers of having to make mutualisation payments under regulation 26(2).
The Secretary of State must publish the mutualisation lower limit determined under paragraph (1)—
in respect of the OLR year which ends on 31st March 2016, on or before 30th September 2015; and
in respect of any other OLR year, before the beginning of the OLR year to which it relates.
Annotations
Commencement
- I1
Reg. 25(1)(3)(4) in force at 14.10.2014, see reg. 1(2)
- I2
Reg. 25(2) in force at 1.10.2015, see reg. 1(3)