The Energy Act 2004 (Assistance for Areas with High Distribution Costs) Order 2005

Article 6

SCHEDULE 2 Modifications to licences granted to authorised suppliers

Condition 30B. Assistance for areas with high distribution costs scheme: payment to system operator

1.  Pursuant to the Energy Act 2004 (Assistance for Areas with High Distribution Costs) Order 2005 and in accordance with this condition the licensee shall, for the purpose of providing assistance with the high costs of distributing electricity incurred by a relevant distributor in the specified area, pay to the system operator the p/kWh tariff specified in accordance with the terms set out in standard condition C21 (Assistance for areas with high distribution costs scheme: payments from authorised suppliers) of the system operator’s transmission licence.

2.  The p/kWh tariff to be paid by the licensee in accordance with paragraph 1 above shall be payable by the licensee on a quarterly basis in each financial year (or such other basis as may be specified in standard condition C21 (Assistance for areas with high distribution costs scheme: payments from authorised suppliers) of the system operator’s transmission licence) by the date indicated in each invoice received by the licensee from the system operator requiring such payment or, where no such date is indicated, within 28 days of the date of the invoice.

3.  The licensee shall pay to the system operator an amount representing 8 per cent above the base interest rate of any payment not made to the system operator on the date specified pursuant to paragraph 2 calculated for each day after the date on which payment should have been made which interest payment shall be made by the licensee as soon as possible after, and in any event within 28 days, of the date of the invoice from the system operator for such payment.

4.  The accounting statements to be prepared for the purposes of standard condition 52 (Regulatory Accounts) in respect of every financial year shall include the payments made to the system operator by the licensee referred to in paragraph 2 and where relevant paragraph 3 of this condition.

5.  In this condition:

“base interest rate”	means, in respect of any day, the rate per annum which is equal to the base lending rate from time to time of Barclays Bank PLC as at the close of business on the immediately preceding business day.
“business day”	means any week day other than a Saturday on which banks are open for domestic business in the City of London.
“p/kWh”	means pence per kilowatt hour.
“relevant distributor”	has the same. meaning as in section 184 of the Energy Act 2004.
“specified area”	means the area specified in the Energy Act 2004 (Assistance for Areas with High Distribution Costs) Order 2005.