{
  "url": "https://openlegislation.uk/warm-home-discount-reconciliation-amendment-regulations-2026/note",
  "json_url": "https://openlegislation.uk/warm-home-discount-reconciliation-amendment-regulations-2026/note.json",
  "legislation": "uksi/2026/991",
  "legislation_title": "The Warm Home Discount (Reconciliation) (Amendment) Regulations 2026",
  "legislation_url": "https://openlegislation.uk/warm-home-discount-reconciliation-amendment-regulations-2026",
  "path": "note",
  "kind": "note",
  "number": null,
  "heading": "Explanatory note",
  "text": "(This note is not part of the Regulations)\nThese Regulations amend the Warm Home Discount (Reconciliation) Regulations 2022 (“the Reconciliation Regulations”).\nThey restate, revoke or revoke and replace provisions that relate to delivery of the reconciliation mechanism in respect of the Warm Home Discount Scheme. They also make saving and transitional provision.\nThese amendments ensure that the Reconciliation Regulations continue to operate in respect of scheme years 16 to 20. Under the amendments, the new approach ensures that suppliers’ participation in the domestic energy market is reflected through cost-weighted supply volumes instead of customer numbers, which represent the extent to which suppliers recover Warm Home Discount costs through unit rates, and the reconciliation mechanism aligns these recovered amounts with total aggregate supplier spending across the scheme. Volumetric recovery must be cost-weighted, so that electricity and gas volumes are combined using the suppliers’ gas and electricity volumes into a single £-based measure, reflecting how much Warm Home Discount cost is recovered through each fuel. Alignment is achieved through the application of a formula for calculating the volumetric market share, which adjusts suppliers’ cost-weighted recovered amounts so that total recovery across the market matches the total aggregate cost of the scheme.\nRegulation 3 amends regulation 2 of the Reconciliation Regulations to replace the definition of the Scheme Regulations with a reference to their most recent iteration, the Warm Home Discount (England & Wales) Regulations 2026 and the Warm Home Discount (Scotland) Regulations 2026. Regulation 4 amends regulation 3 to include new definitions to supplement the Reconciliation Regulations. Regulation 5 amends regulation 4 to replace a requirement for suppliers to notify the Authority of their customer numbers with a requirement for suppliers to notify the Authority of their total volume of gas and electricity units supplied to GB customers and in the relevant period.\nRegulation 6 amends regulation 5 of the Reconciliation Regulations to replace the formula for calculating market share with a new formula intended to provide a volumetric market share calculation for each supplier. The amended regulation 5 refers to the Policy Cost Allowance Methodology (Annex 4) and Wholesale Cost Allowance Methodology (Annex 2). This document has been produced in digital form only, at https://www.ofgem.gov.uk/energy-regulation/domestic-and-non-domestic/energy-pricing-rules/energy-price-cap/energy-price-cap-default-tariff-levels. Alternative, accessible formats can be obtained from Retailpriceregulation@ofgem.gov.uk.\nRegulation 7 inserts a new regulation 5A which allows the Authority to request further information from suppliers for the purposes of the reconciliation mechanism independently of a Secretary of State notice.\nRegulation 8 amends regulation 6 of the Reconciliation Regulations in relation to the Direction to carry out interim reconciliation to replace customer number references with references to the cost-weighted volumetric energy share.\nRegulation 9 amends regulation 7 of the Reconciliation Regulations to replace the old formula used for interim reconciliation based on customer number data with a new formula based on volumetric market share data. It also specifies how truing-up must be completed so that suppliers pay or receive from the Authority an amount which is an equitable reflection of their Warm Home Discount liabilities. Regulation 10 amends regulation 8 of the Reconciliation Regulations to account for the existence of the new Scheme Regulations (the Warm Home Discount (England & Wales) Regulations 2026.\nRegulation 11 removes regulation 9 from the Reconciliation Regulations as the calculation in relation to undelivered rebates is no longer required. Regulation 12 amends regulation 10 of the Reconciliation Regulations to replace the old formula used for final reconciliation based on customer number data with the new formula based on volumetric market share data and specifies how truing-up must be completed so that suppliers pay or receive from the Authority an amount which is an equitable reflection of their Warm Home Discount liabilities. Regulations 13, 14, 15, 16 and 17 make consequential amendments to the Reconciliation Regulations.\nRegulation 18 amends regulation 17 of the Reconciliation Regulations to make consequential amendments to account for the existence of the new Warm Home Discount (Scotland) Regulations 2026.\nRegulation 19 makes saving and transitional provision for scheme year 15, which began before these Regulations come into force, but where reconciliation remains to be determined after that date in accordance with the previous 2022 Scheme rules.\nA full impact assessment has not been produced for this instrument. An analysis of the effect of each of the Schemes on the costs of business and the public sector has been produced and is available alongside the Scheme Regulations on www.legislation.gov.uk. Paper copies can be obtained from the Warm Home Discount Team, Department for Energy Security and Net Zero, Whitehall Place, London. An Explanatory Memorandum has been published alongside this instrument at www.legislation.gov.uk.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/2026/991/note",
    "retrieved_at": "2026-10-31T10:34:01.236194+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."
}