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The Nuclear Regulated Asset Base Model (Revenue Collection) Regulations 2023

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Discharge of obligations by payment

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32.—(1) This regulation applies where an electricity supplier makes a payment to the revenue collection counterparty for the purpose of discharging its relevant obligations but that payment is insufficient to do so.

(2) The revenue collection counterparty must use the payment—

(a)first, to discharge (in whole or in part) any relevant obligation of the supplier arising under regulation 23(1);

(b)where part of the payment remains, secondly, to discharge any relevant obligation of the supplier which is not one arising under regulation 23(1); and

(c)where part of the payment still remains, thirdly, to discharge any relevant obligation of the supplier to make a payment of interest.

(3) Where more than one relevant obligation falls within a subparagraph of paragraph (2), the revenue collection counterparty must determine the order in which those obligations are to be discharged.

(4) On the day on which the revenue collection counterparty uses the payment it must issue a notice to the supplier which sets out the details of—

(a)any relevant obligation which has been wholly discharged;

(b)any relevant obligation which has been partially discharged, and the extent to which it has been discharged; and

(c)any relevant obligation which has not been discharged.

(5) For the purposes of this regulation—

(a)any amount treated as a payment by an electricity supplier to the revenue collection counterparty by virtue of regulation 21(4) or (5) or regulation 30(4) is to be treated as a payment made by that supplier to the revenue collection counterparty for the purpose of discharging its relevant obligations; and

(b)a requirement to provide collateral under regulation 19(2) is not a requirement to make a payment by virtue of these Regulations.

(6) In this regulation—

“payment of interest” means a payment of interest which is required to be made by virtue of regulation 7(6), 8(7), 10(2), 13(7), 16(5), 17(7) or 23(6);

“relevant obligation”, in relation to an electricity supplier, means any obligation of that supplier to make a payment under these Regulations where the date by which that payment should have been made has passed.

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