Regulation 14 Interest on late paymentsI1

A scheme electricity supplier who fails to make the whole or part of any payment under these Regulations by the date on which it is due (a “defaulting supplier”) must pay interest (“late payment interest”) on the unpaid amount for the period—

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 defaulting supplier after the date on which it is due must be applied first to any late payment interest payable under paragraph (1).

Where a defaulting supplier pays late payment interest to the Authority, the Authority must distribute the amount of late payment interest among all the other scheme electricity suppliers, in proportion to their latest market shares for the relevant scheme year.

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;

• “relevant date” means the date on which the Authority makes the distribution referred to in paragraph (4);

• “relevant scheme year”, in relation to the distribution of late payment interest on an unpaid amount, means the scheme year for which, or for part of which, the interim or final reconciliation to which the unpaid amount relates was carried out.