The Warm Home Discount (Scotland) Regulations 2022

Spending on industry initiatives by a compulsory scheme electricity supplier

24.—(1) A compulsory scheme electricity supplier may in respect of a scheme year count towards its non-core spending obligation spending (excluding Value Added Tax) incurred in that scheme year on an activity of a kind listed in the table in Part 1 of Schedule 3 (an “industry initiative”) by—

(a) the supplier; or

(b) a connected scheme gas supplier, to the extent permitted by regulation 26.

(2) But spending on an industry initiative does not count towards a supplier’s non-core spending obligation if the spending—

(a) is incurred pursuant to a requirement in—

(i) any other enactment; or

(ii) an electricity supply or gas supply licence;

(b) is counted by a scheme supplier towards a spending obligation or target imposed by—

(i) any other enactment; or

(ii) an electricity supply or gas supply licence; or

(c) falls within any exception in the table in Part 1 of Schedule 3.

(3) In addition, spending on an industry initiative does not count towards a supplier’s non-core spending obligation unless—

(a) the industry initiative has been notified to the Authority; and

(b) either—

(i) the spending takes place after the Authority approves the initiative; or

(ii) in relation to scheme year 12, the spending takes place before the Authority decides whether to approve the initiative but the Authority subsequently approves it.