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PART 5N.I.Qualifying financially disadvantaged customers

Interpretation of this ChapterN.I.

55.  In this Part—

qualifying amount” means any amount payable by a customer to a supplier under a supply contract, that is not an amount payable in respect of value added tax or climate change levy;

qualifying supply” means energy that a supplier supplies to a qualifying financially disadvantaged customer under a variable price contract during—

(a)

the period beginning 15 days after the scheme introduction date and ending on 31st March 2023, or

(b)

if the customer is a QFDC of the supplier only for a part of that period, that part of that period;

required reductions” has the meaning given in regulation 57(1);

required reductions rules” means rules made under regulation 57.

Commencement Information

I1Reg. 55 in force at 1.11.2022, see reg. 1(1)

Qualifying financially disadvantaged customersN.I.

56.—(1) Subject to paragraph (2), for the purposes of this Part, a customer that was a customer of a supplier on the scheme commencement date is a “qualifying financially disadvantaged customer” or “QFDC” of the supplier if, and for so long, during the scheme period, as—

(a)it continues to be a customer of the supplier on and after the scheme introduction date, and

(b)the supplier supplies it with energy under a deemed contract or an out-of-contract contract.

(2) A customer is not a QFDC for the purposes of this Part if, and for so long, during the scheme period, as—

(a)any qualifying amount due and payable by it under its supply contract—

(b)has been unpaid for more than 28 days after it became payable, and

(c)in respect of that amount—

(i)the customer has not proposed or accepted a plan for payment, or

(ii)such a plan has been agreed, but the customer has failed to make two or more payments when they fell due under the plan.

Commencement Information

I2Reg. 56 in force at 1.11.2022, see reg. 1(1)

Rules in relation to this PartN.I.

57.—(1) The Secretary of State must, no later than 14 days after the scheme introduction date, make rules about further reductions that suppliers are to apply under regulation 58(1)(b), in addition to any discount applied under regulation 19(1)(b), to the qualifying amounts payable by QFDCs (“required reductions”).

(2) The purpose of the required reductions rules is to mitigate the financial disadvantage otherwise experienced by QFDCs in obtaining an affordable supply of energy.

(3) The required reductions rules—

(a)must specify—

(i)the required reductions, or

(ii)a methodology for determining them, and

(b)must provide for required reductions to be specified or determined—

(i)by reference to qualifying amounts, and

(ii)in p/kWh, in pounds, or as a percentage.

(4) The required reductions rules may provide—

(a)that where specified conditions are satisfied, the amount of a required reduction is reduced (or that no required reduction is applicable);

(b)that required reductions are to be different in different cases, as specified in or determined under the rules;

(c)for the Secretary of State or suppliers to publish required reductions.

Commencement Information

I3Reg. 57 in force at 1.11.2022, see reg. 1(1)

Reduction in qualifying amounts payable by qualifying financially disadvantaged customersN.I.

58.—(1) A supplier must, in respect of any billing period in which it makes a qualifying supply—

(a)identify which of its customers are QFDCs for some or all of that period;

(b)for as much of the billing period as a QFDC is a QFDC, apply the required reductions, as specified in or determined under the required reductions rules, to the qualifying amounts payable by it in respect of its qualifying supply;

(c)inform each QFDC in respect of whose qualifying supply it has applied the required reductions of the amount of such reductions, or the basis on which they can be determined, either in, or within 15 days of issuing, an invoice or other statement account in respect of that period.

(2) If a supplier issues an invoice or statement of account to a QFDC in respect of any billing period in which it makes a qualifying supply without having applied the required reductions in accordance with paragraph (1)(b), it must as soon as practicable—

(a)revise the invoice or statement or issue a credit note to reflect the required reductions, and

(b)if the customer pays any amount in respect of such invoice or statement, it must credit to the customer’s account the amount by which such payment exceeds what was payable on the basis of the required reductions, or at the customer’s request reimburse such amount to the customer.

Commencement Information

I4Reg. 58 in force at 1.11.2022, see reg. 1(1)

Terms of supply to qualifying financially disadvantaged customersN.I.

59.  If a supplier changes the terms on which it provides a qualifying supply, the terms applicable to that qualifying supply immediately after that change must not be less favourable to the QFDC than those applicable to it immediately before the change.

Commencement Information

I5Reg. 59 in force at 1.11.2022, see reg. 1(1)