The Energy Bills Discount Scheme Pass-through Requirement Regulations 2023

Pass-through requirement

3.—(1) A relevant intermediary must not—

(a) in its capacity as customer under the EBDS Regulations or the NI EBDS Regulations, serve an opt-out notice on a supplier,

(b) reject, or fail to take all reasonable steps under paragraph (10) to secure, a pass-through amount to which it is entitled under these Regulations, or

(c) provide a pass-through amount to an excluded end user.

(2) A relevant intermediary must ensure that as soon as reasonably practicable after a scheme benefit has been provided to it in respect of a period, it provides to each of its end users in respect of that period a just and reasonable pass-through amount in respect of the scheme benefit provided to that relevant intermediary.

(3) If and to the extent that the relevant intermediary does not pass through the whole of the scheme benefit provided to it in a period to its end users, it is for the relevant intermediary to demonstrate to end users that the pass-through it has effected in respect of the period concerned is just and reasonable, and in so doing it is entitled to take into account the extent to which its charges to end users reflect the increased cost of energy or energy products (or both) as a result of the energy crisis.

(4) The pass-through amount must be calculated in accordance with regulation 4.

(5) Unless the circumstances in paragraph (7) apply, —

(a) a scheme benefit is provided to a relevant intermediary—

(i) when it is notified by a supplier, in its capacity as customer of that supplier, of that scheme benefit under regulation 30(1)(d) of the EBDS Regulations or of the NI EBDS Regulations, or

(ii) if the relevant intermediary is also an end user, when a pass-through amount is provided to it under these Regulations; and

(b) an SRE adjustment is provided to a relevant intermediary—

(i) when it is notified by a supplier, in its capacity as customer of that supplier, of the SRE adjustment under regulation 24(2)(e) of the EBDS Regulations or of the NI EBDS Regulations; or

(ii) if the relevant intermediary is also an end user, when a pass-through amount relating to that SRE adjustment is provided to it under these Regulations.

(6) A scheme benefit is deemed to have been provided to a relevant intermediary when such relevant intermediary is notified that it has been identified as an end user for the purpose of these Regulations but the pass-through amount set out in such notification is zero.

(7) A scheme benefit or SRE adjustment is not treated as having been provided to a relevant intermediary for the purposes of these Regulations to the extent that the relevant intermediary has notified the person that provided the scheme benefit or SRE adjustment that it has been provided in error and the relevant intermediary is taking reasonable steps to return such scheme benefit to that person.

(8) An end user can also be a relevant intermediary in respect of a scheme benefit or SRE adjustment provided to that end user and vice versa.

(9) Where a person is an end user, and that person is also a relevant intermediary in respect of some or all of the same energy or energy products (or both), that person must comply with these Regulations.

(10) To give full effect to the pass-through requirement a relevant intermediary must take all such reasonable steps as may be necessary to secure that it is provided with the scheme benefit to which it is entitled so that it may effect a pass-through to its end users.

(11) If a scheme benefit or SRE adjustment has been provided to a relevant intermediary in respect of energy or energy products (or both) supplied or made available to an excluded end user, the relevant intermediary must notify the person that provided the scheme benefit of this and such scheme benefit is not treated as having been provided to the relevant intermediary for the purposes of these Regulations.

(12) If a relevant intermediary has been provided with an SRE adjustment, the relevant intermediary must take such SRE adjustment into account the next time it calculates a pass-through amount under regulation 4.

(13) A relevant intermediary must determine pass-through amounts consistently with any Secretary of State determination of which it has been given notice under regulation 69(2)(b) of the EBDS Regulations or 70(2)(b) of the NI EBDS Regulations.