The Fossil Fuel Levy (Scotland) Regulations 1996

Regulation 5(1)

SCHEDULE 2 METHOD OF CALCULATING AMOUNT OF ANY PAYMENT IN RESPECT OF LEVY

1.  In this Schedule:

• the superscript " is used to denote the first estimate made by the Director of the amount in question for the period in question to calculate the levy rate for that period;

• the superscript ' is used to denote the revised estimate made by the Director of that amount to calculate the levy rate for the period immediately following that period; and

• the absence of a superscript is used to denote the actual amount in question.

2.  In this Schedule the following symbols have the following meanings:—

• A_y is the aggregate of the total costs calculated in relation to each public electricity supplier in accordance with paragraph 1 of Schedule 3 in respect of period y;

• AA_y is the aggregate of the total costs calculated in relation to each public electricity supplier in accordance with paragraph 2 of Schedule 3 in respect of period y;

• B_y is the aggregate of the total costs calculated in relation to each public electricity supplier in accordance with paragraph 3 of Schedule 3 in respect of period y;

• BB_y is the aggregate of the total costs calculated in relation to each public electricity supplier in accordance with paragraph 4 of Schedule 3 in respect of period y;

• C_y is the amount of the administrative expenses of the Director attributable to the levy incurred in respect of period y;

• E_y is the aggregate amount of all interest payments pursuant to regulation 24(1) in respect of period y less the aggregate amount of all interest payments pursuant to regulation 24(2) in respect of period y;

• F_y is the aggregate amount of all interest payments pursuant to regulation 25 received in period y;

• G_y is the aggregate amount of levy or interest payments due in respect of period y which, in the opinion of the Director, will be either irrecoverable or recoverable only at excessive cost;

• X_y is the aggregate amount (exclusive of levy and value added tax) charged (whether or not a bill or invoice has been delivered to a customer) by licensed suppliers for leviable electricity supplied by them in period y; and

• K_y is the correction factor for y calculated in accordance with paragraph 5.

3.  Subject to any adjustment which may be required pursuant to the Regulations, the amount of any payment to be made by a licensed supplier in respect of the levy in period y shall be calculated by applying to the aggregate amount (exclusive of value added tax and levy) charged (whether or not any bill or invoice has been delivered to a customer) by the supplier for leviable electricity supplied by him during the qualifying month the percentage figure R_y where R_y is the percentage figure r_y given by the formula—

after it has been rounded to the nearest tenth of a per centum (any odd twentieth of a per centum being rounded upwards).

4.  In the formula in paragraph 3 the value of

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is given by the formula—

5.  In the formula in paragraph 3 the correction factor K_y shall be the amount of money, whether positive or negative, given by the following formula—

where—

• I_y—₁ is the arithmetic average of the LIBOR rates on the last day of each of the first six months in period y—1; and

• I_y—₂ is the arithmetic average of the LIBOR rates on the last day of each of the first six months in period y—2.