PART 2Discounted supply price

CHAPTER 4Discounting supply price under supply contracts

Calculation of discountI129

1

For the purposes of these Regulations, “the discount” means the reduction (in p/kWh) in the supply price under a supply contract to be applied pursuant to the scheme in respect of that contract for any period.

2

In the case of a general supply contract or a QHS supply contract, the discount is calculated as follows—

max⁡min⁡BD,MD,SP-MP,0math

Where—

  • BD is the base discount in respect of that supply contract for the period;

  • MD is the maximum discount applicable to that supply contract;

  • SP is the supply price for the period;

  • MP is the minimum supply price applicable to that supply contract.

3

In the case of an ETII supply contract the discount is calculated as follows—

0.3max⁡min⁡BD,MD,SP-MP,0+0.7max⁡min⁡ID, IMB,SP-RMP,0math

Where—

  • BD is the base discount in respect of that supply contract for the period;

  • MD is the maximum discount applicable to that supply contract);

  • SP is the supply price for the period;

  • MP is the minimum supply price applicable to that supply contract;

  • ID is the increased discount in respect of that supply contract for the period;

  • IMD is the maximum discount applicable to an ETII supply contract plus the MD increment;

  • RMP is the minimum supply price applicable to an ETII supply contract less the GSP decrement.