PART 4N.I.Adjustment of discount or supply quantity in certain cases

CHAPTER 1N.I.Arrangements in respect of customer’s financial exposure to wholesale price

Application of this ChapterN.I.

47.—(1) This Chapter applies in respect of a supply contract where—

(a)it may reasonably be expected that—

(i)the quantity of energy supplied to the customer at the premises to which the supply contract relates in the 12-month period starting on 1st April 2023 will exceed 0.5 gigawatt hours, or

(ii)the maximum rate at which energy is supplied under the contract at any time will exceed 0.5 megawatts, and

(b)the customer has made arrangements, otherwise than in a supply contract, by virtue of which the customer’s overall financial exposure to the wholesale price of energy supplied to it in any period within a scheme period (the “effective financial exposure”) differs from its financial exposure in that period to the contracted wholesale price under the supply contract (the “contract financial exposure”).

(2) The ways in which a customer may make an arrangement of the kind described in paragraph (1)(b) include entering into—

(a)financial instruments in respect of the wholesale price of energy;

(b)arrangements under which the customer obtains a benefit from the provision of balancing services;

(c)in connection with the electricity scheme, arrangements under which the customer obtains a benefit by exporting electricity to an electricity system.

Commencement Information