Nuclear Energy (Financing) Act 2022

19 Supplier obligation E+W+S

(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.

Commencement Information

I1 S. 19 in force at 1.6.2022, see s. 44(2)(b)