The Electricity and Gas (Standards of Performance) (Suppliers) Regulations 2015

Exemptions and limitations to supplier payment obligations

9.—(1) Where a supplier’s failure to meet an individual standard of performance is continuing, a supplier is not required to make more than one standard payment under regulation 8(2) in respect of that failure.

(2) Where a supplier’s failure to make a standard payment under regulation 8(2) or relay a distributed payment under regulation 7(1) is continuing, the supplier is not required to make more than one additional standard payment under regulation 8(3) in respect of that failure.

(3) A supplier is not obliged to make a standard payment under regulation 8(2) or an additional standard payment under regulation 8(3), as applicable, if—

(a) there is a genuine dispute between the supplier and the customer as to whether the supplier is obliged to make the standard payment or the additional standard payment;

(b) the customer notifies the supplier that the customer does not wish the supplier to take any action, or any further action, in relation to the matter and the notification occurs before the time when the supplier would have failed to meet the individual standard of performance had the notification in question not occurred;

(c) the supplier reasonably considers that the following matters are frivolous or vexatious—

(i) the notification given by the customer to the supplier under regulation 4(1) or 5(1); or

(ii) the request made by the customer under regulation 3(1);

(d) the customer has—

(i) committed an offence under paragraph 10 or 11 of Schedule 2B to the Gas Act(1) or under paragraph 6 of Schedule 6 to, or paragraph 11 of Schedule 7 to, the Electricity Act(2); or

(ii) failed to pay any charges due to the supplier after receiving notice under paragraph 7(3) of Schedule 2B to the Gas Act(3) or paragraph 2(2) of Schedule 6 to the Electricity Act,

and the action taken or not taken by the supplier was in exercise of its powers under the relevant paragraph; or

(e) it was not reasonably practicable for the supplier to meet the individual standard of performance before the contravention time as a result of—

(i) severe weather conditions;

(ii) the act or default of a person who is not an officer, employee or agent of the supplier and who is not a person acting on behalf of an agent of the supplier;

(iii) the inability of the supplier to obtain any necessary access to any premises;

(iv) the existence of circumstances by reason of which the supplier could reasonably expect that, if it took the action required by the regulation in relation to which the standard payment or additional standard payment is due, it would or would be likely to be in breach of an enactment;

(v) the effects of an event for which emergency regulations have been made under Part 2 of the Civil Contingencies Act 2004(4); or

(vi) other circumstances of an exceptional nature beyond the control of the supplier,

and the supplier has complied with the requirements set out in paragraph (4).

(4) In the event of any of the circumstances set out in paragraph (3)(e)—

(a) the supplier must, prior to the contravention time, have taken all such steps as were reasonable to—

(i) prevent the circumstances from occurring (other than the circumstances in paragraph (3)(e)(i) or (v)); and

(ii) prevent the circumstances from having the effect that it was not reasonably practicable for the supplier to meet the individual standard of performance in question; and

(b) when the action required by the individual standard of performance is the keeping of an appointment in accordance with regulation 3 (appointments) or attending the customer’s premises in fulfilment of any obligations under regulation 4 or 5 (faulty meters and faulty prepayment meters), the supplier must—

(i) if practicable to do so before the contravention time, explain why the supplier is unable to keep the appointment or attend the premises; or

(ii) if not practicable to do so before the contravention time, explain as soon as reasonably practicable after the contravention time why the supplier was unable to keep the appointment or attend the premises.

(5) A supplier is not obliged to make a standard payment following failure to meet any individual standard of performance set out in regulation 3 (appointments)—

(a) when the appointment is for the purpose of responding to a notification given under regulation 5(1) (faulty prepayment meters) or where it relates to the events referred to in regulation 6(1) (reconnection); or

(b) when the appointment is wholly or mainly in connection with disconnecting the premises in exercise of the power contained in paragraph 7 of Schedule 2B to the Gas Act or in paragraph 2 of Schedule 6 to the Electricity Act(5).

(6) Where an appointment is agreed in accordance with regulation 3 (appointments) for more than one purpose, the supplier is not, in respect of that appointment, required to make more than one standard payment in respect of any failure to meet a relevant individual standard of performance under regulation 3.

(7) A supplier is not obliged to make a standard payment following a failure to meet any individual standard of performance set out in regulation 4 (faulty meters) or 5 (faulty prepayment meters) if it is necessary to attend the customer’s premises in order to achieve the standard of performance and the customer has asked the supplier not to do so.

(8) In this regulation—

“contravention time” means the time at which, if this regulation did not apply, the supplier would become liable to make the standard payment or additional standard payment to the customer;

“customer”—

(a)

includes micro-business customer in the application of this regulation to an individual standard of performance in regulation 3 (appointments); and

(b)

means, in the application of this regulation to any failure of a supplier to relay a distributed payment under regulation 7 (distributed payments), any person who is supplied or requires to be supplied with gas conveyed through pipes or electricity at premises which that person owns or occupies; and

a “genuine dispute” does not exist between the supplier and the customer as to whether the supplier is obliged to make a standard payment or an additional standard payment, unless the supplier believes, on reasonable grounds, that it is not obliged to make the standard payment or the additional standard payment.

(1)

Schedule 2B was inserted by section 9(2) of, and Schedule 2 to, the Gas Act 1995.

(2)

Schedule 6 was substituted by Schedule 4 to the Utilities Act 2000.

(3)

Paragraph 7 of Schedule 2B was amended by section 84(4) of, and Schedule 8 to, the Utilities Act 2000 and section 23 of the Energy Act 2011 (c.16).

(4)

2004 c.36.

(5)

Paragraph 2 of Schedule 6 was amended by section 24 of the Energy Act 2011.