PART 8Payments to discharge the renewables obligation, dealing with the buy-out and late payment funds, and mutualisation
Determining whether a relevant shortfall has occurred72
1
As soon as reasonably practicable after the 31st October in the settlement period, the Authority must—
a
determine whether a shortfall has occurred (within the meaning of paragraph (2)); and
b
where such a shortfall has occurred and is a relevant shortfall (within the meaning of paragraph (3)), calculate the total sum to be recovered from relevant suppliers (“the total mutualisation sum”).
2
A shortfall occurs in relation to the relevant period where the amount referred to in sub-paragraph (a) is less than the amount referred to in sub-paragraph (b) and is the difference between the two—
a
the amount referred to in this sub-paragraph is the sum of—
i
the amount held in the buy-out fund on the 1st September in the settlement period, and
ii
the amount held in the late payment fund on 31st October in that period (excluding from that amount any interest paid pursuant to article 68(3)); and
b
the amount referred to in this sub-paragraph is what the amount referred to in sub-paragraph (a) would have been if, on 31st October in the settlement period, each designated electricity supplier which, at the end of the late payment period, has not (and is not treated as having) discharged its renewables obligation in full were to pay to the Authority the amount notified to it by the Authority under article 68(1).
F23
A shortfall in relation to a relevant period is a relevant shortfall if it is equal to, or in excess of, the mutualisation threshold for that period.
F14
The mutualisation threshold for a relevant period is determined as 1% of A x B, rounded to the nearest £100,000 with £50,000 being rounded upwards, where—
i
A is the total obligation for the relevant period determined under article 12;
ii
B is the buy-out price for the relevant period referred to in article 67(4).