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PART 2Revenue collection contracts

Payment and other obligations relating to revenue collection contracts

19Supplier obligation

(1)Revenue regulations must make provision for electricity suppliers to pay a revenue collection counterparty for the purpose of enabling the counterparty to make payments under revenue collection contracts.

(2)Revenue regulations may make provision for electricity suppliers to pay a revenue collection counterparty for the purpose of enabling the counterparty—

(a)to meet such other descriptions of its costs as the Secretary of State considers appropriate;

(b)to hold sums in reserve;

(c)to cover losses in the case of insolvency or default of an electricity supplier.

(3)In subsection (2)(a), “costs” means costs in connection with the performance of any function conferred by or by virtue of this Part.

(4)Revenue regulations may make provision to require electricity suppliers to provide financial collateral to a revenue collection counterparty (whether in cash, securities or any other form).

(5)Revenue regulations that make provision by virtue of subsection (1) for the payment of sums by electricity suppliers must impose on a revenue collection counterparty a duty in relation to the collection of such sums.

(6)The provision that may be made by virtue of this section includes provision for—

(a)a revenue collection counterparty to determine the form and terms of any financial collateral;

(b)a revenue collection counterparty to calculate or determine, in accordance with such criteria as may be provided for by or under the regulations, amounts that are owed by an electricity supplier or are to be provided as financial collateral by an electricity supplier;

(c)the issuing of notices by a revenue collection counterparty to require the payment or provision of such amounts;

(d)the enforcement of obligations arising under such notices.

(7)Provision made by virtue of subsection (6)(b) may provide for anything that is to be calculated or determined under the regulations to be calculated or determined—

(a)by such persons,

(b)in accordance with such procedure, and

(c)by reference to such matters and to the opinion of such persons,

as may be specified in the regulations.

(8)Provision made by virtue of subsection (6)(d) may include provision about—

(a)costs;

(b)interest on late payments under notices;

(c)references to arbitration;

(d)appeals.

(9)Any sum that—

(a)an electricity supplier is required by virtue of revenue regulations to pay to a revenue collection counterparty, and

(b)has not been paid by the date on which it is required by virtue of revenue regulations to be paid,

may be recovered from the electricity supplier by the revenue collection counterparty as a civil debt due to it.

20Payments to electricity suppliers

(1)Revenue regulations may make provision about the amounts that must be paid by a revenue collection counterparty to electricity suppliers.

(2)The provision that may be made by virtue of this section includes provision—

(a)for a revenue collection counterparty to calculate or determine, in accordance with such criteria as may be provided for by or under the regulations, amounts that are owed by the revenue collection counterparty;

(b)for anything that is to be calculated or determined under the regulations to be calculated or determined—

(i)by such persons,

(ii)in accordance with such procedure, and

(iii)by reference to such matters and to the opinion of such persons,

as may be specified in the regulations.

21Application of sums held by a revenue collection counterparty

(1)Revenue regulations may make provision for apportioning sums—

(a)received by a revenue collection counterparty from electricity suppliers under provision made by virtue of section 19;

(b)received by a revenue collection counterparty under a revenue collection contract,

in circumstances where the revenue collection counterparty is unable to fully meet its liabilities under a revenue collection contract.

(2)The provision that may be made by virtue of subsection (1) includes provision about the meaning of “unable to fully meet its liabilities under a revenue collection contract”.

(3)In making provision by virtue of subsection (1), the Secretary of State must have regard to the principle that sums should be apportioned in proportion to the amounts that are owed.

(4)Revenue regulations may make provision about the application of sums held by a revenue collection counterparty.

(5)The provision that may be made by virtue of subsection (4) includes provision that sums are to be paid, or not to be paid, into the Consolidated Fund.

22Enforcement

(1)Revenue regulations may make provision for requirements under the regulations to be enforceable by the Authority as if they were relevant requirements imposed on a regulated person for the purposes of section 25 of the Electricity Act 1989.

(2)The provision that may be made by virtue of subsection (1) includes provision about the enforcement of requirements imposed on the national system operator.