The Warm Home Discount (England and Wales) Regulations 2022

Adjustment of non-core spending obligation: scheme years 13 to 15

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.