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Regulation 20 Obligation to incur spending and amounts of spendingI1

England and Wales

(1)

In each scheme year, a compulsory scheme electricity supplier must incur spending under this Part to the amount of its non-core spending obligation.

(2)

In doing so, the supplier—

(a)

must include spending under Chapter 3 (industry initiatives), subject to the requirements and limits in paragraphs (3) to (5);

(b)

may include spending under Chapter 4 (activities specified by the Secretary of State).

(3)

Where the aggregate non-core spending obligation for the scheme year exceeds £10 million, the amount of spending on financial assistance under regulation 21 which a supplier counts towards its non-core spending obligation—

(a)

must be no less than the obligation percentage of £5 million, but

(b)

must not, in total, exceed the obligation percentage of £10 million.

(4)

Where the aggregate non-core spending obligation for the scheme year exceeds £6 million, the amount of spending on debt write-off under regulation 21 which a supplier counts towards its non-core spending obligation—

(a)

must not exceed the obligation percentage of £3 million in respect of customers who are supplied with neither electricity or gas through a pre-payment meter;

(b)

must not, in total, exceed the obligation percentage of £6 million.

(5)

Where the aggregate non-core spending obligation for the scheme year exceeds £8 million, the amount of spending on the installation of boilers or central heating systems under regulation 21 which a supplier counts towards its non-core spending obligation must not in total exceed the obligation percentage of £8 million.

(6)

In this regulation—

  • “financial assistance” means the activity listed in the final entry in the table in Part 1 of Schedule 2;

  • “obligation percentage”, in relation to a supplier, means the percentage determined in accordance with paragraph (3) of regulation 17.

(7)

This regulation is subject to regulations 23 and 24.

Annotations

Commencement

I1

Reg. 20 in force at 7.7.2022, see reg. 1(2)