Regulation 12 Interest on late paymentsI1

A scheme electricity supplier which fails to make the whole or part of a payment under these Regulations by the date on which it is due must pay interest (“late payment interest”) calculated in accordance with paragraph (2) on the unpaid amount from the date on which the payment falls due to the date on which it is paid.

Late payment interest is to be calculated at a rate of two percentage points above the Bank of England base rate.

Any payment under these Regulations that is made by a scheme electricity supplier after the date on which it is due will be applied first to any late payment interest that is payable under paragraph (1).

Where a scheme electricity supplier pays late payment interest to the Operator, the Operator must distribute the amount of the late payment interest among all other scheme electricity suppliers in proportion to their market shares.