Regulation 12 Substitution of regulation 10

For regulation 10 (calculation of final reconciliation payments) substitute—

“Calculation of final reconciliation payments

10

(1)

The Authority must calculate, in relation to each scheme year, the amount (“the final reconciliation payment”) to be received or paid by each scheme electricity supplier in accordance with this regulation.

(2)

The calculation referred to in paragraph (1) must be made as soon as reasonably practicable after the Authority has given a notification to each scheme electricity supplier in accordance with regulation 8. 

(3)

For the purposes of calculating a scheme electricity supplier’s final reconciliation payment, the final reconciliation payment is to be calculated as follows—

$$\begin{gathered} Reconciliation payment = Supplier Commitment - \\ (VMS \times Aggregate Supplier Commitment) + Pm - Pr \end{gathered}$$

where—

1. (a)

   “Supplier Commitment” is, in this regulation, the actual Warm Home Discount liability, the total cost of rebates provided by that supplier during the scheme year added together with the total cost of the original non-core spending obligation for that supplier;

2. (b)

   “VMS” is the latest volumetric market share, calculated in accordance with the formula set out in regulation 5(3);

3. (c)

   “Aggregate Supplier Commitment” is the total of the Supplier Commitments across all scheme electricity suppliers;

4. (d)

   “Pm” is the total of any interim reconciliation payments already made by the scheme electricity supplier;

5. (e)

   “Pr” is the total of any interim reconciliation payments already received by the scheme electricity supplier.

(4)

Where the final reconciliation payment calculation set out in paragraph (3) results in a positive amount, the scheme electricity supplier is entitled to receive a final reconciliation payment equal to that amount.

(5)

Where the final reconciliation payment calculation set out in paragraph (3) results in a negative amount, the scheme electricity supplier must make a payment equal to that amount to the Authority.”.