{
  "url": "https://openlegislation.uk/power-purchase-agreement-scheme-regulations-2014/regulation-26",
  "json_url": "https://openlegislation.uk/power-purchase-agreement-scheme-regulations-2014/regulation-26.json",
  "legislation": "uksi/2014/2511",
  "legislation_title": "The Power Purchase Agreement Scheme Regulations 2014",
  "legislation_url": "https://openlegislation.uk/power-purchase-agreement-scheme-regulations-2014",
  "path": "regulation/26",
  "kind": "regulation",
  "number": "26",
  "heading": "OLR mutualisation",
  "text": "(1) In this regulation—\n“adjusted market share”, in relation to a licensed supplier, is the market share determined in accordance with regulation 19(4) but adjusted to disregard the market share of the defaulting licensed supplier;\n“the amount to be mutualised” means the total of unpaid amounts referred to in regulation 25(2)(b);\n“defaulting licensed supplier” means a licensed supplier which has failed to make the whole or part of a periodic levelisation payment to the Authority by the date on which it is due;\n“qualifying licensed supplier” is a licensed supplier which has made a mutualisation payment under paragraph (2) in respect of the unpaid amount mentioned in paragraph (6);\n“unpaid amount” means an amount of a periodic levelisation payment which a defaulting licensed supplier has failed to pay by the date on which it is due.\n(2) Where this regulation applies by virtue of regulation 25, the Authority must—\n(a) apportion the amount to be mutualised between all licensed suppliers other than the defaulting licensed supplier, in proportion to each licensed supplier’s adjusted market share;\n(b) give notice to each of those licensed suppliers (a “mutualisation notice”)—\n(i) that it is liable to make a payment of the amount apportioned to it (a “mutualisation payment”); and\n(ii) of the date by which the mutualisation payment is due; and\n(c) where paragraph (3) applies, make a distribution of the total amounts received by the Authority (a “mutualisation distribution”) to any licensed supplier which—\n(i) is not a defaulting licensed supplier; and\n(ii) to whom, because of the unpaid amounts, payment of all or part of a periodic levelisation payment to which it is entitled to under regulation 21 has been deferred.\n(3) This paragraph applies if—\n(a) the date by which the mutualisation payment is due has passed; and\n(b) the Authority has received mutualisation payments.\n(4) If after giving a mutualisation notice to a licensed supplier, the Authority identifies that any mutualisation payment specified in that notice is incorrect, the Authority must—\n(a) cancel that mutualisation notice; and\n(b) give a further mutualisation notice under paragraph (2).\n(5) Where a mutualisation notice is given to a licensed supplier in accordance with paragraph (4)(b) (“the new notice”), the Authority may treat any mutualisation payment made by that licensed supplier in respect of the cancelled notice as a mutualisation payment made in respect of the new notice.\n(6) Where, after receiving mutualisation payments from licensed suppliers, the Authority receives a previously unpaid amount from a defaulting licensed supplier, the Authority must within 20 days distribute that amount among qualifying licensed suppliers in proportion to their adjusted market shares.\n(7) Where the Authority receives a mutualisation payment after the date on which it is due—\n(a) if the Authority has not made yet made a mutualisation distribution, then this amount is to be included in the distribution; or\n(b) if the Authority has made a mutualisation distribution, then this amount is to be distributed in accordance with regulation 28(2).",
  "extent": "E+W+S",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "I",
      "label": "I1",
      "text": "Reg. 26 in force at 1.10.2015, see reg. 1(3)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/2014/2511/regulation/26",
    "retrieved_at": "2026-10-29T00:02:10.991231+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}