(1)The Secretary of State may establish a domestic electricity price reduction scheme for Great Britain.
(2)A “domestic electricity price reduction scheme for Great Britain” is a scheme (including any other related arrangements) that makes provision for and in connection with—
(a)reducing the amount that would otherwise be charged for GB domestic electricity supply by licensed electricity suppliers who are parties to the scheme, and
(b)making payments to those suppliers in respect of those reductions in charges.
(3)The Secretary of State may establish a domestic gas price reduction scheme for Great Britain.
(4)A “domestic gas price reduction scheme for Great Britain” is a scheme (including any other related arrangements) that makes provision for and in connection with—
(a)reducing the amount that would otherwise be charged for GB domestic gas supply by licensed gas suppliers who are parties to the scheme, and
(b)making payments to those suppliers in respect of those reductions in charges.
(5)A domestic electricity or gas price reduction scheme for Great Britain may, in particular, provide for the amount charged to be reduced by an amount calculated by reference to the difference between—
(a)charges that would be made if the scheme were not applicable, and
(b)an amount specified in, or in accordance with, the scheme.
(6)The Secretary of State may modify or revoke a domestic electricity or gas price reduction scheme for Great Britain.
(7)But if the scheme includes provision about modification or revocation of the scheme, the Secretary of State’s power to modify or revoke it is subject to that provision.
(8)Any such provision of the scheme does not prevent the Secretary of State from modifying the scheme if—
(a)the Secretary of State considers that a licensed electricity supplier or licensed gas supplier may make, or has made, arrangements whose primary purpose is to increase payments to the supplier under the scheme, and
(b)the purpose of the modification of the scheme is to prevent the increased payments or require repayment of increased payments.
(9)For provision about time limits on the exercise of the powers conferred by this section, see Schedule 6.
Commencement Information
I1S. 1 in force at Royal Assent, see s. 30(6)