Regulation 11 Termination of supply licenceI1

England, Wales and Scotland

(1)

This regulation applies in relation to a scheme year if, between the date on which the Authority gives the Operator a notification under regulation 4(1) and the date on which the Authority gives the Operator a notification under F1regulation 7(a), the electricity supply licence of a scheme electricity supplier (E) is terminated.

F2(1A)

This regulation also applies in relation to a scheme year if—

(a)

the Authority is the Operator in relation to the scheme year; and

(b)

between the date on which the Authority makes a determination under regulation 4(2A) and the date on which the Authority gives a notification under regulation 7(b), the electricity supply licence of a scheme electricity supplier (E) is terminated.

(2)

F3Where the Authority is not the Operator, the Authority must as soon as practicable notify the Operator of the termination of E’s licence.

(3)

E is not to be treated as a scheme electricity supplier for the purposes of any of the following events which takes place after the termination of its licence—

(a)

an interim or final reconciliation;

(b)

a mutualisation; or

(c)

a distribution of interest under regulation 12(4) or 13.

(4)

If, before the termination of E’s licence, it has been determined upon an interim reconciliation that E is entitled to receive or liable to pay an amount—

(a)

to the extent that the amount is unpaid, E remains subject to that entitlement or liability notwithstanding the termination of its licence; and

(b)

in relation to E, the determination upon the interim reconciliation is to be treated as final.

(5)

F4Paragraph (6) applies for the purposes of any event mentioned in paragraph (3) which takes places after the termination of E’s licence.

(6)

The Operator must recalculate the market share of each remaining scheme electricity supplier in accordance with the formula—

M 2 = M 1 \times \frac{100}{100 - E 1}

where—

M2 is the supplier’s recalculated market share;
M1 is the supplier’s market share as notified to the Operator under regulation 4(1)(b) F5or as determined by the Authority under regulation 4(2A), as the case may be;
E1 is E’s market share as notified to the Operator under regulation 4(1)(b) F6or as determined by the Authority under regulation 4(2A), as the case may be.

(7)

If, before the termination of E’s licence, E received an interim reconciliation payment in relation to the scheme year (£P)—

(a)

any amount that a supplier is entitled under regulation 8(2) to receive upon the final reconciliation is to be adjusted by subtracting M2% of £P; and

(b)

any amount that a supplier is liable under regulation 8(3) to pay upon the final reconciliation is to be adjusted by adding M2% of £P.

(8)

If, before the termination of E’s licence, E paid an interim reconciliation payment in the scheme year (£P)—

(a)

any amount that a supplier is entitled under regulation 8(2) to receive upon the final reconciliation is to be adjusted by adding M2% of £P; and

(b)

any amount that a supplier is liable under regulation 8(3) to pay upon the final reconciliation is to be adjusted by subtracting M2% of £P.

(9)

For the purposes of this regulation an electricity supply licence is “terminated” if—

(a)

it is revoked by the Authority in accordance with the terms of the licence;

(b)

it is surrendered by the licensee; or

(c)

it expires by effluxion of time.

Annotations

Textual amendments

F1: Words in reg. 11(1) substituted (16.9.2017) by The Warm Home Discount (Reconciliation) (Amendment) Regulations 2017 (S.I. 2017/847), regs. 1(2), 11(a)
F2: Reg. 11(1A) inserted (16.9.2017) by The Warm Home Discount (Reconciliation) (Amendment) Regulations 2017 (S.I. 2017/847), regs. 1(2), 11(b)
F3: Words in reg. 11(2) inserted (16.9.2017) by The Warm Home Discount (Reconciliation) (Amendment) Regulations 2017 (S.I. 2017/847), regs. 1(2), 11(c)
F4: Words in reg. 11(5) substituted (16.9.2017) by The Warm Home Discount (Reconciliation) (Amendment) Regulations 2017 (S.I. 2017/847), regs. 1(2), 11(d)
F5: Words in reg. 11(6) inserted (16.9.2017) by The Warm Home Discount (Reconciliation) (Amendment) Regulations 2017 (S.I. 2017/847), regs. 1(2), 11(e)(i)
F6: Words in reg. 11(6) inserted (16.9.2017) by The Warm Home Discount (Reconciliation) (Amendment) Regulations 2017 (S.I. 2017/847), regs. 1(2), 11(e)(ii)

Commencement

I1: Reg. 11 in force at 1.7.2011, see reg. 1(2)