Regulation 21 Adjustment of non-core spending obligation: scheme year 16

(1)

The adjustments that must be made to the non-core spending obligation for scheme year 16 (“O”) of a compulsory scheme electricity supplier (“C”) are as follows.

(2)

O must be adjusted in accordance with paragraph (3) or (4) if I is less than or exceeds S where—

(a)

“I” is the amount of spending incurred by C under Part 4 of the 2022 Regulations in scheme year 15 (as determined by the Authority in accordance with regulation 27 of those Regulations);

(b)

“S” is C’s non-core spending obligation under Part 4 of the 2022 Regulations for scheme year 15, as adjusted (where required) in accordance with regulation 19 of those Regulations.

(3)

If I is less than S, O must be adjusted by adding (S − I).

(4)

If I exceeds S, O must be adjusted by subtracting the lesser of—

(a)

(I − S), and

(b)

the relevant amount.

(5)

For the purposes of paragraph (4) “the relevant amount” is—

(a)

5% of S, or

(b)

where C notified the Authority of its intention to meet all or part of a failed supplier’s non-core spending obligation in accordance with regulation 29 of the 2022 Regulations in scheme year 15, 10% of S.

(6)

Whether or not an adjustment is made under paragraph (2), O must be adjusted by adding an amount equal to the undelivered rebate amount.

(7)

For the purposes of paragraph (6) “the undelivered rebate amount” is £150 multiplied by the number of prescribed rebates as stated in any notification made by C under regulation 12(8) of the 2022 Regulations.