Regulation 16 Make-right amountsI1

This regulation applies if the Authority identifies that an error has been made on an interim or final reconciliation or on the calculation of a mutualisation payment.

The Authority must calculate the amount that each scheme electricity supplier is liable to pay, or is entitled to receive, to correct the error (the “make-right payment”).

The make-right payment for a scheme electricity supplier is the sum of—

But where there is an imbalance, the Authority must adjust each scheme electricity supplier’s make-right payment by a percentage of the amount of the imbalance equal to the supplier’s latest market share for the relevant scheme year, so that the total of the make-right payments which suppliers are liable to pay is equal to the total amount of make-right payments that suppliers are entitled to receive.

For the purposes of paragraph (4), there is an imbalance if, on calculating each scheme electricity supplier’s make-right payment in accordance with paragraph (3), there is a difference between—

The Authority must give a notice (a “make-right notice”) to each scheme electricity supplier who is liable to make or entitled to receive a make-right payment.

A make-right notice must specify—

The date specified for the purposes of paragraph (7)(c) must be at least three working days after the date on which the make-right notice is given.

The date specified for the purposes of paragraph (7)(d) must not be more than 10 working days—

A scheme electricity supplier who is given a make-right notice and is liable to make a make-right payment must pay the specified amount to the Authority on or before the specified date.

Where a scheme electricity supplier is given a make-right notice and is entitled to receive a make-right payment, the Authority must pay the specified amount to the scheme electricity supplier on or before the specified date (but see paragraphs (12) and (13)).

The Authority may defer the whole, or part, of the make-right payments due to scheme electricity suppliers until up to 10 working days after the date it has received the make-right payments due from scheme electricity suppliers.

The amount of the payments deferred under paragraph (12) may not exceed the total of the make-right payments which the scheme electricity suppliers have failed to pay to the Authority on or before the latest due date.

The Authority must maintain a fund into which make-right payments by scheme electricity suppliers and from which make-right payments by the Authority under these Regulations are to be made.

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;

• “mutualisation payment” has the meaning given in regulation 12(3)(a);

• “relevant date” means the date on which the Authority makes the adjustment under paragraph (4);

• “relevant scheme year” means—

  1. (a)

     in relation to an error made on an interim or final reconciliation, the scheme year for which, or for part of which, the interim or final reconciliation was carried out;

  2. (b)

     in relation to an error made on the calculation of a mutualisation payment, the scheme year for which, or for part of which, the interim or final reconciliation to which the mutualisation payment relates was carried out;

• “specified” means specified in a make-right notice.