Explanatory Notes

Energy Act 2013

2013 CHAPTER 32

18 December 2013

Commentary on Sections

Part 2: Electricity Market Reform

Chapter 4: Investment contracts
Schedule 2, Part 2
Paragraph 8: Payments to electricity suppliers

212.This paragraph expressly enables regulations to require the Secretary of State, an investment contract counterparty, or a CFD counterparty to make payments to licensed electricity suppliers. The underlying purpose of the power is to ensure that regulations can require that payments are made to licensed suppliers (where for example the reference price is higher than the strike price) and in circumstances where regulations are made imposing the supplier obligation under paragraphs 7(1) or 7(2).