PART 2Discounted supply price

CHAPTER 3Discounting supply price under supply contracts

Calculation of base discountI117

1

Subject to paragraph (4), the “base discount” in respect of a supply contract for any period (“P”) is determined as—

RWP-GSPmath

Where—

  • RWP is the reference wholesale price applicable to that supply contract for P, subject to paragraph (4);

  • GSP is the government supported price.

2

The Secretary of State must determine the base discounts for fixed price contracts, variable price contracts and DAI price contracts, and publish them with the corresponding reference wholesale prices.

3

Where regulation 48 applies, the base discount is reduced in accordance with that regulation.

4

Where regulation 39(1) applies, the reference wholesale price is determined under sub-paragraph (c) of that regulation.