The Energy-Intensive Industry Electricity Support Payments and Levy Regulations 2024

Mutualisation charge

23.—(1) Paragraph (2) applies where—

(a) at least one electricity supplier fails to pay some or all of the sums required in accordance with regulation 19 in respect of a levy month, and

(b) the total sums required by the EII levy administrator under regulation 19 in relation to that levy month and not paid (“the shortfall”) exceed the amount of the funds held in accordance with regulation 15 (reserve funds).

(2) Where this paragraph applies then the EII levy administrator must consider whether to impose a mutualisation charge, in accordance with paragraph (3).

(3) If the EII levy administrator does decide to impose a mutualisation charge it must, as soon as reasonably practicable, issue a notice to all electricity suppliers, with the exception of any which did not meet their obligations under regulation 19 in relation to that levy month, setting out that it is imposing a mutualisation charge and the amount of the charge to be paid by that supplier.

(4) The amount of the charge referred to in paragraph (3) is the amount which results from the following calculation—

Individual electricity supply / total mutualised electricity supply x shortfall

where—

“Individual electricity supply” is the amount that was calculated in relation to that supplier, where that term was applied in regulation 18 in respect of that levy month;

“shortfall” has the meaning described in paragraph (1)(b);

“total mutualised electricity supply” means the total electricity supply that was calculated in accordance with regulation 18 in respect of that levy month less the individual electricity supply, as calculated in accordance with regulation 18, of all electricity suppliers that did not meet their obligations under regulation 19.

(5) Each electricity supplier that receives a notice under paragraph (3) must pay the EII levy administrator the sum set out in the notice within 5 working days of the date on which it receives the notice.