The Warm Home Discount (Miscellaneous Amendments) Regulations 2016

Amendments to regulation 15 (types and amounts of spending)

13.—(1) In regulation 15(3)—

(a) in sub-paragraph (a)—

(i) for “year 5” substitute “years 5, 6 and 7”;

(ii) after “regulation 12(5)(b)” insert “or (7)(b) for the scheme year”;

(b) at the end of sub-paragraph (b) omit “and”;

(c) at the beginning of sub-paragraph (c) insert “in scheme years 1 to 5,”;

(d) at the end of sub-paragraph (c) insert “and”;

(e) after sub-paragraph (c) insert—

“(d) in scheme years 6 and 7, may include spending on industry initiatives under Chapter 4 and on specified activities under Chapter 5, subject to the limits in paragraphs (4)(d) and (4B).”.

(2) In regulation 15(3A)—

(a) for “year 5” substitute “years 5, 6 and 7”;

(b) for sub-paragraph (a) substitute—

“(a) a compulsory scheme electricity supplier must notify the Authority by 15th December in the scheme year if it considers that it will not incur at least the amount of spending notified to the supplier under regulation 12(5)(b) or (7)(b) for the scheme year;”;

(c) at the beginning of sub-paragraph (b), insert “in scheme year 5,”;

(d) at the end of sub-paragraph (b) omit “and”;

(e) after sub-paragraph (b) insert—

“(ba) in scheme years 6 and 7, the Authority must, within 28 days of receiving such a notification—

(i) determine whether, and if so the extent to which, the supplier may incur spending below that amount;

(ii) where the Authority determines that the supplier may incur spending below that amount, determine the amount by which the supplier must increase its spending under Chapters 4 or 5; and

(iii) notify the supplier accordingly; and”;

(f) in sub-paragraph (c), for “sub-paragraph (b)(iii)” substitute “sub-paragraphs (b)(iii) or (ba)(iii)”.

(3) In regulation 15(4)—

(a) at the end of sub-paragraph (b)(ii) omit “and”;

(b) at the end of sub-paragraph (c)(iii) insert “and”;

(c) after sub-paragraph (c) insert—

“(d) under Chapters 4 and 5 combined, in scheme years 6 and 7, is the relevant percentage of £30 million, unless the Authority has notified the supplier under paragraph (3A)(ba)(iii) that spending in excess of that amount is necessary to meet the supplier’s non-core spending obligation.”.

(4) In regulation 15(4A), for “year 5” substitute “years 5, 6 and 7”.

(5) After regulation 15(4A) insert—

“(4B) The maximum amount of spending under Chapter 4 on debt write-off that a compulsory scheme electricity supplier may count towards its non-core spending obligation is the relevant percentage of—

(a) £15 million in scheme year 6; and

(b) £12 million in scheme year 7.”.

(6) In regulation 15(5), for “paragraphs (4) and (4A)” substitute “paragraphs (4) to (4B)”.

(7) After regulation 15(5), insert—

“(6) In paragraph (4B), “debt write-off” means the provision of assistance to reduce or cancel debts for household electricity or gas supply by means of reducing or cancelling the debts.”.