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The Warm Home Discount (England and Wales) Regulations 2022

Draft Legislation:

This is a draft item of legislation. This draft has since been made as a UK Statutory Instrument: The Warm Home Discount (England and Wales) Regulations 2022 No. 772

Types of spending: activities specified by the Secretary of State

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25.—(1) A compulsory scheme electricity supplier may, in respect of any scheme year, count towards its non-core spending obligation financial contributions (excluding Value Added Tax) made by the supplier in the scheme year to fund a specified activity.

(2) A “specified activity” is an activity specified in a notice published by the Secretary of State.

(3) The Secretary of State may only specify an activity in a notice if the Secretary of State is satisfied that—

(a)the funding of the activity is open to contributions from any compulsory scheme electricity supplier,

(b)the activity is of a kind listed in the first column of the table in Part 1 of Schedule 2, and does not fall within an exception in the second column of the table,

(c)the activity includes adequate measures to ensure, so far as reasonably practicable, that—

(i)every E&W domestic customer provided with benefits under the activity will be provided with energy advice and smart meter advice, and

(ii)benefits provided under the activity will be provided wholly or mainly to persons in fuel poverty or in a fuel poverty risk group, and

(d)the activity will provide value for money.

(4) But financial contributions made to fund a specified activity do not count towards a supplier’s non-core spending obligation if they are—

(a)made pursuant to a requirement in—

(i)any other enactment, or

(ii)an electricity supply or gas supply licence, or

(b)counted by a scheme supplier towards a spending obligation or target imposed by—

(i)any other enactment, or

(ii)an electricity supply or gas supply licence.

(5) In addition, financial contributions to fund a specified activity may count towards a supplier’s non-core spending obligation only if they are made after the Secretary of State has published the notice specifying the activity.

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