Regulation 12 MutualisationI1

This regulation applies if, after the Authority has given a notice under regulation 11(1) to each scheme electricity supplier who is liable to make a reconciliation payment, one or more of those scheme electricity suppliers (each a “defaulting supplier”) fails to make the whole or part of the reconciliation payment to the Authority on or before the date on which it is due (the “due date”).

The Authority must—

A mutualisation notice must specify—

The date specified for the purposes of paragraph (3)(b) must be at least three working days after the date on which the mutualisation notice is given.

A scheme electricity supplier who is given a mutualisation notice must pay the specified amount to the Authority on or before the specified date.

The Authority may defer the whole, or part, of any reconciliation payments due to scheme electricity suppliers until up to 10 working days after the date it has received—

The amount of the payments deferred under paragraph (6) may not exceed the total of the overdue amounts.

Paragraph (9) applies if—

the Authority receives an overdue amount from a defaulting supplier (a “paying supplier”).

Where this paragraph applies, the Authority must—

A mutualisation notice given in accordance with paragraph (9)(b) must not be given to—

Paragraph (12) applies if, after receiving mutualisation payments from scheme electricity suppliers, the Authority receives an overdue amount from a defaulting supplier.

Where this paragraph applies, the Authority must, within 10 working days after the date on which it receives the amount from the defaulting supplier, distribute that amount among the suppliers who have made mutualisation payments in proportion to their latest market shares (as used to calculate their mutualisation payment).

In this regulation—

• “latest market share”, in relation to a scheme electricity supplier and a relevant scheme year, means the most recent of any of the following determinations or recalculations of the supplier’s market share made by the Authority before the relevant date—

  1. (a)

     F1a determination under regulation 5(1)(a) of the supplier’s market share for the purposes of interim reconciliation;

  2. (b)

     a determination under regulation 5(1)(b) of the supplier’s market share for the purposes of final reconciliation;

  3. (c)

     a recalculation under regulation 13(4) of the supplier’s market share for the relevant scheme year;

• “overdue amount”, in relation to a reconciliation payment that a scheme electricity supplier is liable to make, means the amount of the reconciliation payment which the scheme electricity supplier has failed to pay to the Authority by the due date;

• “relevant date” means the date on which the Authority makes the apportionment referred to in paragraph (2)(a);

• “relevant scheme year”, in relation to the calculation of a mutualisation payment by apportionment of an overdue amount, means the scheme year for which, or for part of which, the interim or final reconciliation to which the overdue amount relates was carried out;

• “specified” means specified in a mutualisation notice.