The Energy Bills Discount Scheme (Northern Ireland) Regulations 2023 No. 454

PART 2 N.I. Discounted supply price

CHAPTER 4 N.I. Discounting supply price under supply contracts

Calculation of base discount N.I.

28.  Subject to paragraph (3)—

(a) the “base discount” in respect of a supply contract for any period (“P”) is calculated as follows—

(b) the “increased discount” in respect of an ETII supply contract for P is calculated as follows—

Where—

• RWP is the reference wholesale price applicable to that supply contract for P, subject to paragraph (4);

• GSP is the government supported price applicable to that supply contract;

• GSPD is the GSP decrement.

(2) The Secretary of State must determine the base discounts and (for ETII supply contracts) increased discounts for fixed price contracts, variable price contracts and DAI price contracts, and publish them with the corresponding reference wholesale prices.

(3) Where regulation 58 applies, the base discount is reduced and (for an ETII supply contract) the increased discount is reduced in accordance with that regulation.

(4) Where paragraph (1) of regulation 49 applies, the reference wholesale price is determined under sub-paragraph (c) of that paragraph.

Commencement Information

I1 Reg. 28 in force at 26.4.2023, see reg. 1(1)

Calculation of discount N.I.

29.—(1) For the purposes of these Regulations, “ the discount” means the reduction (in p/kWh) in the supply price under a supply contract to be applied pursuant to the scheme in respect of that contract for any period.

(2) In the case of a general supply contract or a QHS supply contract, the discount is calculated as follows—

Where—

• BD is the base discount in respect of that supply contract for the period;

• MD is the maximum discount applicable to that supply contract;

• SP is the supply price for the period;

• MP is the minimum supply price applicable to that supply contract.

(3) In the case of an ETII supply contract the discount is calculated as follows—

Where—

• BD is the base discount in respect of that supply contract for the period;

• MD is the maximum discount applicable to that supply contract);

• SP is the supply price for the period;

• MP is the minimum supply price applicable to that supply contract;

• ID is the increased discount in respect of that supply contract for the period;

• IMD is the maximum discount applicable to an ETII supply contract plus the MD increment;

• RMP is the minimum supply price applicable to an ETII supply contract less the GSP decrement.

Commencement Information

I2 Reg. 29 in force at 26.4.2023, see reg. 1(1)

Duty of suppliers to provide the discount N.I.

30.—(1) A supplier must, in respect of each supply contract—

(a) determine the base discount, increased discount (in the case of an ETII supply contract) and the discount for any period;

(b) reduce the supply price by the discount;

(c) reduce the amount charged to the customer in respect of supply in any billing period by an amount calculated as the billed supply quantity multiplied by the discount;

(d) for each billing period, inform the customer in its invoice or other statement of account, or in a separate communication given within the period of 15 days beginning on the date that it issued its invoice or other statement of account, in respect of that billing period, of—

(i) the amount of the discount;

(ii) the discounted supply price;

(iii) the amount by which its charges for supply in the billing period have been reduced by applying the discount, or the basis on which that amount can be determined.

(2) In relation to a flexible price contract the information provided by the supplier under paragraph (1)(d) must include an explanation of how the reference wholesale price for the relevant billing period has been calculated.

(3) Where a supplier adjusts its charges to a customer in consequence of energy reconciliation in respect of any period, the adjustment must be made on the basis of the discounted supply price applicable to such period.

(4) In respect of the period from the scheme start date to the scheme introduction date, a supplier must, no later than 45 days after the scheme introduction date—

(a) determine the amount by which its charges to a customer for energy supplied in that period are to be reduced by the application of the discount;

(b) where it has issued an invoice or statement of account to the customer in respect of any such charges, revise such invoice or statement or issue a credit note to reflect such reduction in charges;

(c) where the customer has paid any amount in respect of such charges, credit to the customer’s account the amount by which such payment exceeds what was payable on the basis of the discounted supply price, or at the customer’s request reimburse such amount to the customer.

(5) A supplier must ensure that—

(a) the amounts which are the subject of arrangements it makes with, or requirements it imposes, on any customer in connection with the payment (or assurance of payment) or collection of charges under a supply contract, are amounts calculated by reference to the discounted supply price;

(b) where a customer takes its supply through a prepayment meter, the prepayment meter is set or reset, or other arrangements are made, as soon as reasonably practicable after the scheme introduction date, and thereafter whenever required, to ensure that the amounts paid by the customer over each scheme period reflect charges at the discounted supply price for supply in the scheme period.

(6) Arrangements and requirements referred to in paragraph (5)(a) include (without limitation) arrangements or requirements for advance payment, payment by direct debit, payment by instalments, security or credit cover for payment.

Commencement Information

I3 Reg. 30 in force at 26.4.2023, see reg. 1(1)

Consequences of change in contract categorisation N.I.

31.  Where the categorisation of a supply contract under regulation 11 is revised, either by agreement of the contract parties or by determination of the Secretary of State under these Regulations, the supplier must—

(a) redetermine the amount of any charges for energy supplied under the contract prior to the date of such revision on the basis of the discounted supply price applicable to the contract as re-categorised,

(b) determine the amount by which any such charges already included in any invoice or statement of account are to be revised to reflect such redetermination,

(c) notify the customer of its determinations under paragraphs (a) and (b), and

(d) take the necessary steps to ensure the amount in paragraph (b) is credited or debited to the customer by way of credit note, or adjustment of an existing invoice or statement of account, or inclusion in a future invoice or statement of account.

Commencement Information

I4 Reg. 31 in force at 26.4.2023, see reg. 1(1)