The Warm Home Discount Regulations 2011

Regulation 12(2)

SCHEDULE 1 Aggregate non-core spending obligation

Determination of aggregate non-core spending obligation

1.  Before determining the amount of the aggregate non-core spending obligation for a scheme year, the Secretary of State must estimate the aggregate amount of benefits (if any) to be provided by scheme suppliers under Part 3 in that scheme year (“the core group spending estimate”).

2.  The amount of the aggregate non-core spending obligation for a scheme year (“year t”) is to be T – E where—

• T is the overall spending target for year t; and

• E is the core group spending estimate for year t.

3.  The overall spending target is—

(a) £250 million for scheme year 1; and

(b) subject to any adjustments under paragraphs 4 to 6, £275 million for scheme year 2;

(c) subject to any adjustments under paragraphs 4 to 9—

(i) £300 million for scheme year 3; and

(ii) £310 million for scheme year 4.

4.  Before determining the amount of the aggregate non-core spending obligation for scheme year 2, 3 or 4, (“year t”), the Secretary of State must—

(a) review the core group spending estimate for year t-1; and

(b) increase or reduce that estimate, if it appears to the Secretary of State that the aggregate amount of benefits provided under Part 3 in year t-1 will be greater or less than the estimate.

5.  If the Secretary of State increases the core group spending estimate for year t-1, the overall spending target for year t is to be reduced by a corresponding amount.

6.  If the Secretary of State reduces the core group spending estimate for year t-1, the Secretary of State may increase the overall spending target for year t by an amount not exceeding the amount of that reduction.

7.  Before determining the amount of the obligation for scheme year 3 or 4 (“year t”), the Secretary of State must (in addition to the steps in paragraph 4 to 6) calculate the difference between—

(a) the aggregate amount of benefits provided under Part 3 in year t-2 (“A_t-2”); and

(b) the core group spending estimate (with any increase or reduction previously made to it) for year t-2 (“E_t-2”).

8.  If A_t-2 is greater than E_t-2, the overall spending target for year t is to be reduced by an amount corresponding to the difference between A_t-2 and E_t-2.

9.  If A_t-2 is less than E_t-2, the Secretary of State may increase the overall spending target for year t by an amount not exceeding the difference between A_t-2 and E_t-2.

Interpretation

10.  In this Schedule—

“year t-1” means the scheme year preceding the scheme year for which the amount of the obligation is being determined; and

“year t-2” means the scheme year before year t-1.

Regulation 19(5) and (7)

SCHEDULE 2 Broader group

PART 1 Eligibility criteria: descriptions of persons satisfying Condition 1

1.  A person who is in receipt of income support and—

(a) has parental responsibility for a child under the age of 5 who ordinarily resides with that person; or

(b) is in receipt of a qualifying component.

2.  A person who is in receipt of income-related employment and support allowance which includes a work-related activity or support component and—

(a) has parental responsibility for a child under the age of 5 who ordinarily resides with that person; or

(b) is in receipt of a qualifying component.

3.  A person who is in receipt of income-based job seeker’s allowance and—

(a) has parental responsibility for a child under the age of 5 who ordinarily resides with that person; or

(b) is in receipt of a qualifying component.

4.  A person who is in receipt of state pension credit.

PART 2 Verification measures referred to in regulation 19(7)(a)

1.  Obtaining from each customer, orally or in writing—

(a) the customer’s name, address and telephone number;

(b) a declaration that the customer meets the supplier’s eligibility criteria; and

(c) an explanation of how the customer meets those criteria.

2.  Explaining to each customer that the customer may be asked to provide further evidence of eligibility before receiving a rebate under the Warm Home Discount scheme.

3.  In relation to at least 5% of the number of customers which the compulsory scheme electricity supplier provides with the prescribed rebate in a scheme year, obtaining documentary evidence before providing the prescribed rebate that the customer meets the supplier’s eligibility criteria.

PART 3 Interpretation

In this Schedule—

“documentary evidence” includes copies of documents;

“qualifying component” means—

(a)

child tax credit which includes a disability or severe disability element;

(b)

a disabled child premium;

(c)

a disability premium, enhanced disability premium or severe disability premium;

(d)

a pensioner premium, higher pensioner premium or enhanced pensioner premium.

Regulation 24(2) and (4)

SCHEDULE 3 Determination of legacy spending

PART 1 Information to be provided by relevant suppliers to the Authority

1.  The mean annual household electricity consumption in the scheme year of all domestic customers supplied by the relevant supplier with electricity at a discounted tariff.

2.  The mean annual household gas consumption in the scheme year of all domestic customers supplied by the relevant supplier with gas at a discounted tariff.

3.  For each combination of fuel type and payment method—

(a) the number of customers supplied at a discounted tariff (“discounted tariff customers”) on the last day of each month in the scheme year;

(b) unless sub-paragraph (d) applies, the price of the discounted tariff on the last day of each month in the scheme year;

(c) unless sub-paragraph (e) applies, the price of the reference tariff on the last day of each month in the scheme year;

(d) if the supplier charges different prices in different regions for the discounted tariff, the mean, on the last day of each month in the scheme year, of the prices of the discounted tariff in each region in which the supplier has customers on that tariff, and

(e) if the supplier charges different prices in different regions for the reference tariff, the mean, on the last day of each month in the scheme year, of the prices of the reference tariff in each region in which the supplier has customers on that tariff.

4.  For each combination of fuel type, payment method and month—

(a) the total annual cost of fuel for a discounted tariff customer (“D”), and

(b) the total annual cost of fuel for a customer paying a reference tariff (“R”),

on the assumptions that (in each case)—

(i) the customer’s rate of consumption of each fuel supplied to that customer is the mean rate of consumption of all the supplier’s discounted tariff customers;

(ii) the customer remains on that tariff for a year;

(iii) the price of the tariff on the last day of that month remains unchanged for that year; and

(iv) if the supplier charges different prices in different regions for the tariff, the price paid by the customer is the mean of the prices charged in each region in which the supplier has customers on that tariff.

5.  The amount of each rebate provided by the supplier under Chapter 3 of Part 4, and the number of customers provided with a rebate of that amount.

PART 2 Method to be used by the Authority to calculate the value of discounted tariffs provided by a relevant supplier

1.  In relation to each month in a scheme year—

(a) for each combination of fuel type and payment method, (R – D) is to be multiplied by the relevant supplier’s number of discounted tariff customers on the last day of the month; and

(b) for each fuel type, the amounts calculated under sub-paragraph (a) for different payment methods are to be added together.

2.  For each fuel type—

(a) in relation to each quarter, the mean of the amounts calculated under paragraph 1(b) for the months in that quarter is to be multiplied by the relevant weighting; and

(b) the amounts calculated under sub-paragraph (a) for each quarter in the scheme year are to be added together.

3.  The amounts calculated under paragraph 2(b) for each fuel type are to be added together.

PART 3 Supplementary

1.  For the purposes of Part 1, all prices, costs and amounts are to be notified excluding Value Added Tax.

2.  In this Schedule—

“quarter” means—

(a)

1st April to 30th June;

(b)

1st July to 30th September;

(c)

1st October to 31st December; or

(d)

1st January to 31st March;

“relevant weighting”, for a fuel type and a quarter, means the percentage specified in the following table—

Quarter	Electricity	Gas	Dual fuel
1st April to 30th June	20%	15%	20%
1st July to 30th September	20%	10%	15%
1st October to 31st December	30%	35%	30%
1st January to 31st March	30%	40%	35%

Regulation 26(1) and (2)

SCHEDULE 4 Industry initiatives

Type of initiative	Exceptions
Payments to organisations which refer to electricity or gas suppliers, or facilitate the referral of, customers who— (a) are in fuel poverty or in a fuel poverty risk group; and (b) are, or may be, eligible for a benefit under these Regulations or for any other assistance from the supplier.
Providing, or funding the provision by other persons of— (a) benefit entitlement checks; or (b) benefit entitlement checks and assistance in claiming benefits.
Providing to domestic energy users, or funding the provision by other persons to domestic energy consumers of— (a) energy efficiency measures; (b) thermal efficiency measures; (c) energy efficient appliances; or (d) microgeneration.
Providing, or funding the provision by other persons of, energy advice to domestic consumers.
Training persons, or funding the training of persons, to provide energy advice to domestic consumers.	A supplier may not count costs of training its own employees or contractors, or the employees or contractors of a company in the same group of companies as the supplier.
Providing assistance, or funding the provision by other persons of assistance, to reduce or cancel debts for household electricity or gas supply, where such assistance is provided as part of a package of measures aimed at providing customers with long-term relief from fuel poverty.	A supplier may not count costs arising from a billing error by the supplier.