Explanatory note

These Regulations amend the Warm Home Discount (Reconciliation) Regulations 2022 (S.I. 2022/1162) (“the Reconciliation Regulations”). The Reconciliation Regulations establish a reconciliation mechanism for the purposes of the Warm Home Discount (England and Wales) Scheme and the Warm Home Discount (Scotland) Scheme.

The reconciliation mechanism provides for payments to be made to, or by, each scheme electricity supplier, so that the cost to each electricity supplier of providing rebates under the Warm Home Discount Schemes is proportionate to the electricity supplier’s market share. A market share contribution is calculated for each scheme electricity supplier, and is used by the Gas and Electricity Markets Authority in the calculation of final reconciliation payments to be received by or paid by each scheme electricity supplier after the end of each scheme year.

These Regulations amend the method, in regulation 10 of the Reconciliation Regulations, for calculating a scheme electricity supplier’s market share contribution for a scheme year to exclude undelivered rebates from the aggregate amount of rebates provided under the Warm Home Discount Schemes. Undelivered rebates are rebates which the scheme electricity supplier has provided to a customer, but which have not been accepted by the customer.

A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sector is foreseen.