- Latest available (Revised)
- Original (As made)
This is the original version (as it was originally made). This item of legislation is currently only available in its original format.
15.—(1) The Secretary of State must determine and notify the Authority of the aggregate non-core spending obligation—
(a)for scheme year 12, on or before the 7th day after the commencement day;
(b)for scheme years 13, 14 and 15, by 14th February preceding the start of the scheme year.
(2) Schedule 1 makes provision for the determination of the aggregate non-core spending obligation.
16.—(1) The Authority must—
(a)calculate, in accordance with regulation 17, the non-core spending obligation for each compulsory scheme electricity supplier for each scheme year, and
(b)adjust each supplier’s non-core spending obligation for a scheme year in accordance with—
(i)for scheme year 12, regulation 18; or
(ii)for any other scheme year, regulation 19.
(2) The Authority must notify each compulsory scheme electricity supplier—
(a)of its non-core spending obligation for each scheme year;
(b)whether any adjustment is made to its obligation for a scheme year in accordance with regulation 18 or 19;
(c)if such an adjustment is made, of the adjusted amount of its non-core spending obligation for that scheme year.
(3) The notification under paragraph (2)(a) must be given—
(a)for scheme year 12, on or before the 25th working day after the commencement day;
(b)for any other scheme year, by 14th March preceding the start of the scheme year.
(4) The notification under paragraph (2)(b) and, as the case may be, (c) must be given by 31st October in the scheme year to which it relates.
17.—(1) The non-core spending obligation of a compulsory scheme electricity supplier (“C”) for a scheme year, subject to any adjustments under regulation 18 or 19, is—
(a)where the Secretary of State adjusts the initial overall spending target for the scheme year in accordance with paragraph 4(3) or (4) of Schedule 1—
(i)A, if C is not a relevant supplier;
(ii)A + B, if C is a relevant supplier and the initial overall spending target is increased in accordance with paragraph 4(3) of Schedule 1;
(iii)A – B, if C is a relevant supplier and the initial overall spending target is reduced in accordance with paragraph 4(4) of Schedule 1;
(b)otherwise, C’s obligation percentage of the aggregate non-core spending obligation for the scheme year.
(2) For the purposes of paragraph (1)(a)—
(a)“A” is C’s obligation percentage for the scheme year of the amount which would have been the aggregate non-core spending obligation if the adjustment under paragraph 4(3) or (4) (as the case may be) of Schedule 1 had not been made;
(b)“B” is—
(i)if the scheme year is scheme year 12, C’s relevant percentage (as determined under regulation 13(2) of the 2011 Regulations for scheme year 11) of the amount by which the initial overall spending target for scheme year 12 is adjusted in accordance with paragraph 4(3) or (4) of Schedule 1;
(ii)otherwise, C’s obligation percentage for the preceding scheme year of the amount by which the initial overall spending target for the scheme year is adjusted in accordance with paragraph 4(3) or (4) of Schedule 1.
(3) For the purposes of this regulation, “the obligation percentage” in relation to C and a scheme year is—
Where
“X” is the relevant number of GB domestic customers, and
“Y” is the total number of GB domestic customers of—
all compulsory scheme electricity suppliers, and
all scheme gas suppliers who are connected to a compulsory scheme electricity supplier.
(4) For the purposes of paragraph (3)(a), the relevant number of GB domestic customers is—
(a)if C is connected to one or more scheme gas suppliers but is not connected to any other compulsory scheme electricity suppliers, the combined number of GB domestic customers of C and its connected scheme gas suppliers;
(b)if C is connected to one or more scheme gas suppliers and to one or more other compulsory scheme electricity suppliers, a number equal to C% of (CE + CG) where—
(i)“C%” is C’s number of GB domestic customers as a percentage of CE;
(ii)“CE” is the combined number of—
(aa)C’s number of GB domestic customers, and
(bb)the number of GB domestic customers of C’s connected compulsory scheme electricity suppliers;
(iii)“CG” is the number of GB domestic customers of C’s connected scheme gas suppliers;
(c)otherwise, C’s number of GB domestic customers.
(5) For the purposes of paragraphs (3) and (4)—
(a)a reference to a supplier’s number of GB domestic customers is a reference to the supplier’s number of GB domestic customers on 31st December preceding the start of the scheme year;
(b)a supplier is to be treated as connected to another supplier only if they were connected on that date.
(6) In this regulation “relevant supplier” means—
(a)in relation to scheme year 12, a compulsory scheme electricity supplier (within the meaning given in regulation 5(1) of the 2011 Regulations) in relation to scheme year 11;
(b)in relation to any other scheme year, a compulsory scheme electricity supplier in relation to the preceding scheme year.
18.—(1) The adjustments that must be made to the non-core spending obligation for scheme year 12 (“O”) of a compulsory scheme electricity supplier (“C”) are as follows.
(2) O must be adjusted in accordance with paragraph (3) or (4) if I is less than or exceeds S where—
(a)“I” is the amount of spending incurred by C under Part 4 of the 2011 Regulations in scheme year 11 (as determined by the Authority in accordance with regulation 29(1)(d) of those Regulations);
(b)“S” is C’s non-core spending obligation under that Part of those Regulations for scheme year 11, as adjusted (where required) in accordance with regulation 14 of those Regulations.
(3) If I is less than S, O must be adjusted by adding an amount equal to 90.6% of (S − I).
(4) If I exceeds S, O must be adjusted by subtracting the lesser of—
(a)an amount equal to 90.6% of (I − S), and
(b)an amount equal to 90.6% of the overspend amount.
(5) For the purposes of paragraph (4) “the overspend amount” is—
(a)5% of S, or
(b)where C notified the Authority of their intention to meet all or part of a failed supplier’s non-core spending obligation in accordance with regulation 30A of the 2011 Regulations in scheme year 11, 10% of S.
(6) Whether or not an adjustment is made under paragraph (2), O must be adjusted by adding an amount equal to 90.6% of the undelivered rebate amount.
(7) For the purposes of paragraph (6) “the undelivered rebate amount” is £140 multiplied by—
(a)where C has made a notification under regulation 9(7) of the 2011 Regulations in respect of scheme year 11, the number of prescribed rebates as stated in that notification, and
(b)where C has made a notification under regulation 14(3A) of the 2011 Regulations in respect of scheme year 11, the number of prescribed rebates as stated in that notification.
19.—(1) The adjustments that must be made to the non-core spending obligation for a scheme year (other than scheme year 12) (“O”) of a compulsory scheme electricity supplier (“C”) are as follows.
(2) O must be adjusted in accordance with paragraph (3) or (4) if I is less than or exceeds S where—
(a)“I” is the amount of spending incurred by C under this Part (as determined by the Authority in accordance with regulation 27) in the preceding scheme year;
(b)“S” is C’s non-core spending obligation for the preceding scheme year as adjusted for that year, where required, in accordance with regulation 18 or this regulation.
(3) If I is less than S, O must be adjusted by adding (S − I).
(4) If I exceeds S, O must be adjusted by subtracting the lesser of—
(a)(I − S), and
(b)the relevant amount.
(5) For the purposes of paragraph (4) “the relevant amount” is—
(a)5% of S, or
(b)where C notified the Authority of their intention to meet all or part of a failed supplier’s non-core spending obligation in accordance with regulation 29, 10% of S.
(6) Whether or not an adjustment is made under paragraph (2), O must be adjusted by adding an amount equal to the undelivered rebate amount.
(7) For the purposes of paragraph (6) “the undelivered rebate amount” is £150 multiplied by, where C has made a notification under regulation 12(8) in respect of the preceding scheme year, the number of prescribed rebates as stated in that notification.
Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.
Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.
Explanatory Memorandum sets out a brief statement of the purpose of a Statutory Instrument and provides information about its policy objective and policy implications. They aim to make the Statutory Instrument accessible to readers who are not legally qualified and accompany any Statutory Instrument or Draft Statutory Instrument laid before Parliament from June 2004 onwards.
Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:
Impact Assessments generally accompany all UK Government interventions of a regulatory nature that affect the private sector, civil society organisations and public services. They apply regardless of whether the regulation originates from a domestic or international source and can accompany primary (Acts etc) and secondary legislation (SIs). An Impact Assessment allows those with an interest in the policy area to understand:
Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:
Click 'View More' or select 'More Resources' tab for additional information including: