Regulation 13 Calculation of non-core spending obligationI1

X is C’s number of domestic customers, unless sub-paragraph (b) or (c) applies;

if C is connected to one or more scheme gas suppliers but not to any other compulsory scheme electricity suppliers, X is the combined number of domestic customers of C and its connected scheme gas suppliers;

if C is connected to one or more scheme gas suppliers and to one or more other compulsory scheme electricity suppliers, X is a number equal to Z% of the combined number of domestic customers of C and its connected scheme gas suppliers and connected compulsory scheme electricity suppliers; and

Y is the total number of domestic customers of all—

references to a supplier’s number of domestic customers are to the supplier’s number of domestic customers on the 31st December preceding the start of the scheme year; and

a supplier is to be treated as connected to another supplier if those suppliers were connected on the 31st December preceding the start of the scheme year (but not otherwise).

A – B, if the overall spending target has been reduced under paragraph 5 of Schedule 1 F5and C was a compulsory scheme electricity supplier in the preceding scheme year;

A + B, if the overall spending target has been increased under paragraph 6 of Schedule 1 F6and C was a compulsory scheme electricity supplier in the preceding scheme year;

A, if C was not a compulsory scheme electricity supplier in the preceding scheme year.

A is C’s relevant percentage for the scheme year of the amount which would have been the aggregate non-core spending obligation for that scheme year if the overall spending target had not been reduced or increased under paragraph 5, or paragraph 6 (as applicable), of Schedule 1;

B is C’s relevant percentage, as determined under paragraph (2) for the preceding scheme year, of the amount by which the overall spending target has been reduced or increased under paragraph 5, or paragraph 6 (as applicable), of Schedule 1.