The Electricity and Gas (Energy Company Obligation) (Amendment) Order 2017

New article 30A (transfer of obligations)

23.  In Part 5, before article 31 insert—

“Transfer of obligations

30A.— (1) All or part of a supplier’s obligation may be transferred from that supplier (“A”) to another supplier (“B”) (“a transfer”) if the transfer is approved by the Administrator.

(2) A and B must—

(a) apply for approval in writing to the Administrator by no later than 31st December 2017; and

(b) provide to the Administrator such information as the Administrator may reasonably require.

(3) An application under this article must identify—

(a) which obligation the application relates to (“the relevant obligation”); and

(b) the amount of that obligation that A intends to transfer to B (“the transfer amount”).

(4) The Administrator must not approve the transfer if—

(a) the transfer amount exceeds A’s relevant obligation;

(b) the transfer would result in A or B’s home heating minimum requirement being greater than its total home heating cost reduction obligation;

(c) the transfer would result in A or B’s rural minimum requirement being greater than its total carbon emissions reduction obligation;

(d) the transfer would result in A or B’s total provisional solid wall minimum requirement being greater than its total carbon emissions reduction obligation;

(e) having regard to section 30O of the Gas Act 1986(1) and section 27O of the Electricity Act 1989(2) (maximum amount of penalty or compensation), the Administrator considers that, if the transfer were approved, there is a significant risk that it would adversely affect the Administrator’s ability to enforce the requirements placed on B under this Order; or

(f) where A and B are not members of the same group, the Administrator considers that, if the transfer were approved, there is a significant risk that B will be unable to achieve one or more of its obligations.

(5) If a transfer is approved—

(a) for the purposes of Part 4 and this Part, A’s relevant obligation is to be treated as reduced by the transfer amount and B’s relevant obligation is to be treated as increased by the transfer amount; and

(b) the Administrator must notify A and B of their revised relevant obligation.

(6) If the Administrator decides not to approve a transfer it must—

(a) notify A of any reasons for that decision relating to A; and

(b) notify B of any reasons for that decision relating to B.

(7) In this article, “obligation” means a supplier’s—

(a) home heating minimum requirement;

(b) rural minimum requirement;

(c) total carbon emissions reduction obligation;

(d) total home heating cost reduction obligation; or

(e) total provisional solid wall minimum requirement.”.

(1)

1986 c.44. Section 30O was inserted by paragraph 1 of Schedule 14 to the Energy Act 2013 (c.32).

(2)

1989 c.29. Section 27O was inserted by paragraph 2 of Schedule 14 to the Energy Act 2013.