27.—(1) This regulation applies if the supply licence of a licensed supplier (E) is terminated.
(2) E is not to be regarded as a licensed supplier for the purposes of any periodic levelisation, annual levelisation or mutualisation which takes place after the termination of its licence.
(3) If, before the termination of E’s licence, it has been determined on a periodic or annual levelisation under this Part that E is liable to pay or entitled to receive an amount, to the extent that it is unpaid—
(a)E remains subject to that liability but, if the Authority identifies that the calculation of the amount is incorrect, it may adjust the amount and E is liable to pay the adjusted amount (to the extent that it is unpaid);
(b)E remains entitled to that amount but, if the Authority identifies that the calculation of the amount is incorrect, it may adjust the amount and E is entitled to the adjusted amount (to the extent that it is unpaid).
(4) If—
(a)an annual levelisation takes place after the termination of E’s licence; and
(b)E had received or paid periodic levelisation payments for the OLR year to which the annual levelisation relates,
the Authority may adjust the annual levelisation payment of each remaining licensed supplier to ensure that the total amount of levelisation payments made or due to be made by licensed suppliers for the OLR year is equal to the total amount of levelisation payments received or due to be received by licensed suppliers for the OLR year.
(5) For the purposes of this regulation, a supply licence is terminated if—
(a)it is revoked by the Authority in accordance with the terms of the licence;
(b)it is surrendered by the licensed supplier; or
(c)it expires by effluxion of time.
28.—(1) This regulation applies when the Authority receives a payment as a consequence of the application of—
(a)regulation 23(4)(b);
(b)regulation 24(2); or
(c)regulation 26(7)(b).
(2) The Authority must distribute the payment to licensed suppliers in proportion to each licensed supplier’s market share.
(3) For the purposes of paragraph (2), a licensed supplier’s market share is to be calculated in accordance with regulation 19(4) in respect of the OLR year in which the payment was received by the Authority.
(4) The distribution under paragraph (2) must be made on or before 1st October following the end of the OLR year in which the payment was received.
(5) Before making a distribution under paragraph (2), the Authority must give notice to each licensed supplier entitled to receive part of the distribution setting out—
(a)what the distribution relates to; and
(b)the amount the licensed supplier is to receive.