Regulation 13 Termination of supply licenceI1
England, Wales and Scotland
This regulation applies if the electricity supply licence of a scheme electricity supplier (“E”) is terminated—
after the date on which the Authority makes a determination under regulation 5(1)(a) in relation to a scheme year (the “relevant scheme year”); but
before the date on which the Authority gives a notification under regulation 8 in respect of the relevant scheme year.
If, before the termination of E’s licence, the Authority has calculated under Chapter 2 that E is liable to make or entitled to receive an interim reconciliation payment for the relevant scheme year—
to the extent that the payment remains unpaid, E remains so liable or entitled (as the case may be) despite the termination of E’s licence;
in relation to E, the interim reconciliation for the relevant scheme year is to be treated as final.
E is not to be treated as a scheme electricity supplier for the purposes of any of the following events taking place after the termination of its licence—
an interim or final reconciliation;
a mutualisation notice given under regulation 12(2);
a distribution of interest (see regulation 14(4) or 15).
After the termination of E’s licence, the Authority must recalculate the market share of each remaining scheme electricity supplier for the relevant scheme year in accordance with the following formula—
where—
“M2” is the remaining scheme electricity supplier’s recalculated market share for the relevant scheme year;
“M1” is the remaining scheme electricity supplier’s original market share for the relevant scheme year;
“E1” is E’s original market share for the relevant scheme year.
For the purposes of paragraph (4), a scheme electricity supplier’s original market share for the relevant scheme year is the most recent of any of the following determinations or recalculations of the supplier’s market share made by the Authority before the date on which E’s licence is terminated—
a determination under regulation 5(1)(a) of the supplier’s market share for the purposes of interim reconciliation;
a determination under regulation 5(1)(b) of the supplier’s market share for the purposes of final reconciliation;
a recalculation under regulation 13(4) of the supplier’s market share for the relevant scheme year.
If, before the termination of E’s licence, E received an interim reconciliation payment (“IRP”) for the relevant scheme year—
any final reconciliation payment that a supplier is entitled to receive under F2regulation 10(4) on a final reconciliation for the relevant scheme year is to be adjusted by subtracting M2% of IRP;
any final reconciliation payment that a supplier is liable to pay under F3regulation 10(5) on a final reconciliation for the relevant scheme year is to be adjusted by adding M2% of IRP.
If, before the termination of E’s licence, E paid an interim reconciliation payment (“IRP”) for the relevant scheme year—
any final reconciliation payment that a supplier is entitled to receive under F4regulation 10(4) on a final reconciliation for the relevant scheme year is to be adjusted by adding M2% of IRP;
any final reconciliation payment that a supplier is liable to pay under F5regulation 10(5) on a final reconciliation for the relevant scheme year is to be adjusted by subtracting M2% of IRP.
For the purposes of this regulation, an electricity supply licence is terminated if—
it is revoked by the Authority in accordance with the terms of the licence;
it is surrendered by the licensee; or
it expires by the passage of time.
In this regulation “electricity supply licence” means a licence under section 6(1)(d) of the Electricity Act 1989f1.
Annotations
Textual amendments
- F1
Reg. 13(5)(a)(b)(c) substituted (28.9.2026) by The Warm Home Discount (Reconciliation) (Amendment) Regulations 2026 (S.I. 2026/991), regs. 1(2), 14(a) (with reg. 19)
- F2
Words in reg. 13(6)(a) substituted (28.9.2026) by The Warm Home Discount (Reconciliation) (Amendment) Regulations 2026 (S.I. 2026/991), regs. 1(2), 14(b)(i) (with reg. 19)
- F3
Words in reg. 13(6)(b) substituted (28.9.2026) by The Warm Home Discount (Reconciliation) (Amendment) Regulations 2026 (S.I. 2026/991), regs. 1(2), 14(b)(ii) (with reg. 19)
- F4
Words in reg. 13(7)(a) substituted (28.9.2026) by The Warm Home Discount (Reconciliation) (Amendment) Regulations 2026 (S.I. 2026/991), regs. 1(2), 14(c)(i) (with reg. 19)
- F5
Words in reg. 13(7)(b) substituted (28.9.2026) by The Warm Home Discount (Reconciliation) (Amendment) Regulations 2026 (S.I. 2026/991), regs. 1(2), 14(c)(ii) (with reg. 19)
Commencement
- I1
Reg. 13 in force at 30.11.2022, see reg. 1(2)
Footnotes
- f1