The Warm Home Discount (Reconciliation) (Amendment) Regulations 2024

This Statutory Instrument has been made in consequence of a defect in SI 2022/1162 and is being issued free of charge to all known recipients of that Statutory Instrument.

Statutory Instruments

2024 No. 893

Electricity

Gas

The Warm Home Discount (Reconciliation) (Amendment) Regulations 2024

Made

at 9.30 a.m. on 3rd September 2024

Laid before Parliament

at 2.00 p.m. on 3rd September 2024

Coming into force

1st October 2024

The Secretary of State makes these Regulations in exercise of the powers conferred by sections 11 and 31(6) of the Energy Act 2010(1).

In accordance with section 14(1) of the Energy Act 2010, the Secretary of State has consulted the Gas and Electricity Markets Authority, licensed electricity suppliers, licensed gas suppliers and such other persons as the Secretary of State thinks appropriate(2).

Citation, commencement and extent

1.—(1) These Regulations may be cited as the Warm Home Discount (Reconciliation) (Amendment) Regulations 2024.

(2) These Regulations come into force on 1st October 2024.

(3) These Regulations extend to England and Wales and Scotland.

Amendment of the Warm Home Discount (Reconciliation) Regulations 2022

2.  In the Warm Home Discount (Reconciliation) Regulations 2022(3), in regulation 10 (calculation of final reconciliation payments)—

(a) in paragraph (5)(b), for “amount notified to that supplier under regulation 8(b)” substitute “aggregate amount of delivered rebates for the scheme year”;

(b) after paragraph (6) insert—

“(6A) For the purposes of paragraph (5)(b), the aggregate amount of delivered rebates for a scheme year is—

where—

• “A_t” is the amount notified to scheme electricity suppliers under regulation 8(b);

• “F_t” is the sum of the number of undelivered rebates provided, or treated as being provided, in the scheme year by each scheme electricity supplier.”;

(c) in paragraph (7), after the definition of “relevant date”, insert—

““undelivered rebate” has the same meaning as in regulation 9”.

Miatta Fahnbulleh

Parliamentary Under Secretary of State

Department for Energy Security and Net Zero

At 9.30 a.m. on 3rd September 2024

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend the Warm Home Discount (Reconciliation) Regulations 2022 (S.I. 2022/1162) (“the Reconciliation Regulations”). The Reconciliation Regulations establish a reconciliation mechanism for the purposes of the Warm Home Discount (England and Wales) Scheme and the Warm Home Discount (Scotland) Scheme.

The reconciliation mechanism provides for payments to be made to, or by, each scheme electricity supplier, so that the cost to each electricity supplier of providing rebates under the Warm Home Discount Schemes is proportionate to the electricity supplier’s market share. A market share contribution is calculated for each scheme electricity supplier, and is used by the Gas and Electricity Markets Authority in the calculation of final reconciliation payments to be received by or paid by each scheme electricity supplier after the end of each scheme year.

These Regulations amend the method, in regulation 10 of the Reconciliation Regulations, for calculating a scheme electricity supplier’s market share contribution for a scheme year to exclude undelivered rebates from the aggregate amount of rebates provided under the Warm Home Discount Schemes. Undelivered rebates are rebates which the scheme electricity supplier has provided to a customer, but which have not been accepted by the customer.

A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sector is foreseen.

(1)

2010 c. 27.

(2)

“Licensed electricity supplier” and “licensed gas supplier” are defined in section 15(5) of the Energy Act 2010.

(3)

S.I. 2022/1162.