The Energy Act 2004 (Assistance for Areas with High Distribution Costs) Order 2005

Article 8

SCHEDULE 7 Modification to licences granted to authorised transmitters

Condition C21. Assistance for areas with high distribution costs scheme: payments from authorised suppliers

1.  Pursuant to the Energy Act 2004 (Assistance for Areas with High Distribution Costs) Order 2005 the licensee shall collect payments from authorised suppliers in accordance with the provisions of this condition.

2.  For each relevant year the licensee shall calculate a p/kWh tariff by dividing the total scheme amount by a reasonable forecast of the total units of electricity to be supplied within Great Britain during the relevant year.

3.  The licensee shall issue to each authorised supplier an invoice for the amount determined by applying the p/kWh tariff to the units of electricity actually supplied by each authorised supplier during each period in relation to the relevant year t specified in the following table and such invoices shall be issued in respect of each such period in relation to the relevant year t by the dates specified in the following table specifying the amount due and the date required for payment of such amount by the authorised supplier which shall not be more than 28 days from the date of the invoice.

Period in relevant year	Invoice dates in relation to relevant year
April to June	15 August
July to September	15 November
October to December	15 February
January to March	15 May

4.  The invoices issued pursuant to paragraph 3 above may also include a separate amount payable by an authorised supplier representing an interest charge of 8 per cent above the base interest rate on any payment not made to the licensee by the authorised supplier on the date specified calculated for each day after the date on which any payment relating to a previous invoice or to previous invoices should have been made up to the date on which such payment was actually made.

5.  For each relevant year, the licensee shall prepare a statement setting out in respect of such relevant year:

(a) the methodology used to calculate the p/kWh tariff;

(b) the p/kWh tariff that will apply in the relevant year;

(c) the terms for payment of invoices issued under paragraph 3 above including the dates by which such invoices should be paid;

(d) a statement that the level of interest to be applied to any late payments by an authorised supplier shall be 8% above the base interest rate as calculated and applied in accordance with paragraph 4 above;

(e) contact details which can be used if an authorised supplier has any queries concerning the operation of the assistance for areas with high distribution costs scheme;

(f) a statement of the administration allowance; and

(g) a statement of the assistance amount payable by the licensee in relation to the relevant year, together with details of the payments payable by the licensee on the payment dates in relation to the relevant year specified in standard condition C22 (Assistance for areas with high distribution costs scheme: payments to a relevant distributor).

6.  For each relevant year including the first relevant year, as soon as reasonably practicable after the preparation of the statement made pursuant to paragraph 5 above and not less than one month prior to issuing the first invoice in the relevant year to which such statement relates, the licensee shall provide a copy of the statement to the Authority, authorised suppliers and to a relevant distributor. Where a person becomes an authorised supplier on a date after the statement has been provided under this paragraph, the licensee shall provide a copy to such authorised supplier as soon as reasonably practicable after such date.

7.  The licensee shall send a copy of any statement prepared pursuant to paragraph 5 above to any person who requests a copy.

8.  The licensee may make a charge for any copy of a statement sent pursuant to paragraph 7 above of an amount reflecting the licensee’s reasonable costs of providing such copy which costs shall not exceed the maximum amount specified in directions issued by the Authority for the purposes of this condition.

9.  In this condition:

“administration allowance”	means the amount of the licensee’s revenue allowance for administering the assistance for areas with high distribution costs scheme with the value specified in or calculated in accordance with paragraph 3 of standard condition C20 (Assistance for areas with high distribution costs scheme: restriction on revenue).
“assistance amount”	means the amount payable by the licensee to a relevant distributor in any relevant year pursuant to Condition C22 (Assistance for areas with high distribution costs scheme: payments to a relevant distributor).
“assistance for areas with high distribution costs scheme”	means the scheme established pursuant to the Energy Act 2004 (Assistance for Areas with High Distribution Costs) Order 2005.
“authorised supplier”	has the meaning given to it in section 184 of the Energy Act 2004.
“business day”	means any week day other than a Saturday on which banks are open for domestic business in the City of London.
“correction amount”	means the amount for reconciliation of payments in respect of the assistance for areas with high distribution costs scheme as specified in or calculated in accordance with paragraph 4 of standard condition C20 (Assistance for areas with high distribution costs scheme: restriction on revenue).
“base interest rate”	means, in respect of any day, the rate per annum which is equal to the base lending rate from time to time of Barclays Bank PLC as at the close of business on the immediately preceding business day.
“late payments”	means payments made by authorised suppliers not received by the licensee in the timescales described in any invoice issued by the licensee pursuant to this condition.
“p/kWh”	means pence per kilowatt hour.
“relevant year”	means a year beginning on 1 April of each calendar year and ending on 31 March of the following calendar year.
“total scheme amount”	means the maximum revenue of the licensee in relation to the assistance for areas with high distribution costs scheme and calculated in accordance with paragraph 1 of standard condition C20 (Assistance for areas with high distribution costs: restriction on revenue).
“units of electricity supplied”	means the best possible data supplied from BSCCo (as defined in the BSC) of the kilowatt hours consumed by the appropriate supplier’s BM Units (as defined in the BSC) at the time the licensee prepares the relevant invoice for issuing under paragraph 3 above.