SUPPLY BELOW MARKET PRICE

Supply below market price: additional calculations to be made by licensed supplier

19.—(1) In addition to the calculation required by paragraph (2) of regulation 11, in respect of each qualifying month the licensed supplier shall also calculate in the appropriate manner and in relation to each relevant category of electricity the aggregate amount (exclusive of the levy and value added tax) which would have been charged if the electricity in that category supplied by him during that month had been supplied at the market price.

(2) A copy of the calculation made in accordance with paragraph (1) shall be furnished to the Director at the same time as the licensed supplier furnishes him with the statement in accordance with regulation 12.

(3) Subject to paragraph (4), for the purposes of paragraph (1) the appropriate manner is given by the formula–

where–

• A is the number of units of electricity in each relevant category supplied by the licensed supplier in the qualifying month;

• B_j is the number of units of electricity purchased by the licensed supplier at grid supply points in each half hour during the qualifying month;

• C_j is the market price applicable to that half hour during that month; and

• _j represents each half hour in that month.

(4) In any case where Σ_j B_j is zero, the appropriate manner for the purposes of paragraph (1) is given by the formula–

where–

• A, C_j and _j have the values or meanings given in paragraph (3); and

• D is the number of half hours in the qualifying month.

(5) In this regulation and in regulations 20 and 21 “market price” means the price any licensed supplier would have had to pay for a unit of electricity purchased for delivery during the half hour in respect of which the calculation is being made and in relation to which no terms as to price, other than those at which any other licensed supplier would have been entitled to purchase that unit, are available.