OpenLegislation

Regulation 15 Types and amounts of spending in scheme years 1 to 7F26I1

England, Wales and Scotland

(1)

In F1each of scheme years 1 to 7 a compulsory scheme electricity supplier must, subject to paragraph (2), incur spending under this Part to the amount of its non-core spending obligation.

(2)

In relation to scheme year 1, 2 or 3, a compulsory scheme electricity supplier is not in breach of paragraph (1) if the amount of spending incurred by the supplier under this Part (as determined by the Authority in accordance with regulation 29(d)) is equal to or greater than 99% of its non-core spending obligation.

(3)

The spending to be incurred by a compulsory scheme electricity supplier under this Part—

(a)

must, in F2each of scheme years 1 to 7, include the provision of rebates to broader group customers under Chapter 2 F3and in scheme F4years 5, 6 and 7 must, where reasonably practicable, be no less than the amount notified to the supplier under regulation 12(5)(b) F5or (7)(b) for the scheme year;

(b)

if the supplier is a relevant supplier, may in scheme years 1, 2 and 3 include legacy spending under Chapter 3, subject to the limits in paragraph (4)(a) and (c); F6...

(c)

F7in scheme years 1 to 5, may include spending on industry initiatives under Chapter 4, subject to the limits in paragraph (4)(b) and (c); F8and

F9(d)

in scheme years 6 and 7, may include spending on industry initiatives under Chapter 4 and on specified activities under Chapter 5, subject to the limits in paragraphs (4)(d) and (4B).

F10(3A)

In scheme F11years 5, 6 and 7—

(F12a)

a compulsory scheme electricity supplier must notify the Authority by 15th December in the scheme year if it considers that it will not incur at least the amount of spending notified to the supplier under regulation 12(5)(b) or (7)(b) for the scheme year;

(b)

F13in scheme year 5, the Authority must, within 28 days of receiving such a notification—

(i)

determine whether, and if so the extent to which, the supplier may incur spending below that amount;

(ii)

where the Authority determines that the supplier may incur spending below that amount, determine the amount by which the supplier must increase its spending under Chapter 4; and

(iii)

notify the supplier accordingly; F14...

(F15ba)

in scheme years 6 and 7, the Authority must, within 28 days of receiving such a notification—

(i)

determine whether, and if so the extent to which, the supplier may incur spending below that amount;

(ii)

where the Authority determines that the supplier may incur spending below that amount, determine the amount by which the supplier must increase its spending under Chapters 4 or 5; and

(iii)

notify the supplier accordingly; and

(c)

a supplier must comply with a determination notified to it under F16sub-paragraphs (b)(iii) or (ba)(iii).

(4)

The maximum amount of spending that a compulsory scheme electricity supplier may count towards its non-core spending obligation—

(a)

under Chapter 3, is the relevant percentage of—

(i)

£140 million in scheme year 1;

(ii)

£70 million in scheme year 2; and

(iii)

£35 million in scheme year 3;

F17(b)

under Chapter 4—

(i)

in scheme years 1 to 4, is the relevant percentage of £30 million; and

(ii)

in scheme year 5, is the relevant percentage of £30 million, unless the Authority has notified the supplier under paragraph (3A)(b)(iii) that spending in excess of that amount is necessary to meet the supplier’s non-core spending obligation; F18...

(c)

under Chapters 3 and 4 combined, is the relevant percentage of—

(i)

£150 million in scheme year 1;

(ii)

£85 million in scheme year 2; and

(iii)

£53 million in scheme year 3; F19and

F20(d)

under Chapters 4 and 5 combined, in scheme years 6 and 7, is the relevant percentage of £30 million, unless the Authority has notified the supplier under paragraph (3A)(ba)(iii) that spending in excess of that amount is necessary to meet the supplier’s non-core spending obligation.

F21(4A)

In scheme F22years 5, 6 and 7, the amount of spending that a compulsory scheme electricity supplier must aim to make under Chapter 2 is the relevant percentage of the amount calculated by subtracting £30 million from the aggregate non-core spending obligation.

F23(4B)

The maximum amount of spending under Chapter 4 on debt write-off that a compulsory scheme electricity supplier may count towards its non-core spending obligation is the relevant percentage of—

(a)

£15 million in scheme year 6; and

(b)

£12 million in scheme year 7.

(5)

In F24paragraphs (4) to (4B), “the relevant percentage” means the percentage determined under regulation 13(2).

F25(6)

In paragraph (4B), “debt write-off” means the provision of assistance to reduce or cancel debts for household electricity or gas supply by means of reducing or cancelling the debts.

Annotations

Textual amendments

F1

Words in reg. 15(1) substituted (15.8.2018) by The Warm Home Discount (Miscellaneous Amendments) Regulations 2018 (S.I. 2018/909), regs. 1, 14(2)(a)

F2

Words in reg. 15(3)(a) substituted (15.8.2018) by The Warm Home Discount (Miscellaneous Amendments) Regulations 2018 (S.I. 2018/909), regs. 1, 14(2)(b)

F3

Words in reg. 15(3)(a) inserted (11.3.2015) by The Warm Home Discount (Miscellaneous Amendments) Regulations 2015 (S.I. 2015/652), regs. 1, 11(a)

F4

Words in reg. 15(3)(a) substituted (23.7.2016) by The Warm Home Discount (Miscellaneous Amendments) Regulations 2016 (S.I. 2016/806), regs. 1, 13(1)(a)(i)

F5

Words in reg. 15(3)(a) inserted (23.7.2016) by The Warm Home Discount (Miscellaneous Amendments) Regulations 2016 (S.I. 2016/806), regs. 1, 13(1)(a)(ii)

F6

Word in reg. 15(3)(b) omitted (23.7.2016) by virtue of The Warm Home Discount (Miscellaneous Amendments) Regulations 2016 (S.I. 2016/806), regs. 1, 13(1)(b)

F7

Words in reg. 15(3)(c) inserted (23.7.2016) by The Warm Home Discount (Miscellaneous Amendments) Regulations 2016 (S.I. 2016/806), regs. 1, 13(1)(c)

F8

Word in reg. 15(3)(c) inserted (23.7.2016) by The Warm Home Discount (Miscellaneous Amendments) Regulations 2016 (S.I. 2016/806), regs. 1, 13(1)(d)

F9

Reg. 15(3)(d) inserted (23.7.2016) by The Warm Home Discount (Miscellaneous Amendments) Regulations 2016 (S.I. 2016/806), regs. 1, 13(1)(e)

F10

Reg. 15(3A) inserted (11.3.2015) by The Warm Home Discount (Miscellaneous Amendments) Regulations 2015 (S.I. 2015/652), regs. 1, 11(b)

F11

Words in reg. 15(3A) substituted (23.7.2016) by The Warm Home Discount (Miscellaneous Amendments) Regulations 2016 (S.I. 2016/806), regs. 1, 13(2)(a)

F12

Reg. 15(3A)(a) substituted (23.7.2016) by The Warm Home Discount (Miscellaneous Amendments) Regulations 2016 (S.I. 2016/806), regs. 1, 13(2)(b)

F13

Words in reg. 15(3A)(b) inserted (23.7.2016) by The Warm Home Discount (Miscellaneous Amendments) Regulations 2016 (S.I. 2016/806), regs. 1, 13(2)(c)

F14

Word in reg. 15(3A)(b) omitted (23.7.2016) by virtue of The Warm Home Discount (Miscellaneous Amendments) Regulations 2016 (S.I. 2016/806), regs. 1, 13(2)(d)

F15

Reg. 15(3A)(ba) inserted (23.7.2016) by The Warm Home Discount (Miscellaneous Amendments) Regulations 2016 (S.I. 2016/806), regs. 1, 13(2)(e)

F16

Words in reg. 15(3A)(c) substituted (23.7.2016) by The Warm Home Discount (Miscellaneous Amendments) Regulations 2016 (S.I. 2016/806), regs. 1, 13(2)(f)

F17

Reg. 15(4)(b) substituted (11.3.2015) by The Warm Home Discount (Miscellaneous Amendments) Regulations 2015 (S.I. 2015/652), regs. 1, 11(c)

F18

Word in reg. 15(4)(b)(ii) omitted (23.7.2016) by virtue of The Warm Home Discount (Miscellaneous Amendments) Regulations 2016 (S.I. 2016/806), regs. 1, 13(3)(a)

F19

Word in reg. 15(4)(c)(iii) inserted (23.7.2016) by The Warm Home Discount (Miscellaneous Amendments) Regulations 2016 (S.I. 2016/806), regs. 1, 13(3)(b)

F20

Reg. 15(4)(d) inserted (23.7.2016) by The Warm Home Discount (Miscellaneous Amendments) Regulations 2016 (S.I. 2016/806), regs. 1, 13(3)(c)

F21

Reg. 15(4A) inserted (11.3.2015) by The Warm Home Discount (Miscellaneous Amendments) Regulations 2015 (S.I. 2015/652), regs. 1, 11(d)

F22

Words in reg. 15(4A) substituted (23.7.2016) by The Warm Home Discount (Miscellaneous Amendments) Regulations 2016 (S.I. 2016/806), regs. 1, 13(4)

F23

Reg. 15(4B) inserted (23.7.2016) by The Warm Home Discount (Miscellaneous Amendments) Regulations 2016 (S.I. 2016/806), regs. 1, 13(5)

F24

Words in reg. 15(5) substituted (23.7.2016) by The Warm Home Discount (Miscellaneous Amendments) Regulations 2016 (S.I. 2016/806), regs. 1, 13(6)

F25

Reg. 15(6) inserted (23.7.2016) by The Warm Home Discount (Miscellaneous Amendments) Regulations 2016 (S.I. 2016/806), regs. 1, 13(7)

F26

Words in reg. 15 heading inserted (15.8.2018) by The Warm Home Discount (Miscellaneous Amendments) Regulations 2018 (S.I. 2018/909), regs. 1, 14(1)

Commencement

I1

Reg. 15 in force at 1.4.2011, see reg. 1(2)