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

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Condition 53B. Assistance for areas with high distribution costs scheme: allocation of the annual payment between specified suppliers

1.  The licensee shall apply the benefit of any annual payment received pursuant to paragraph 1 of standard condition 53A (Assistance for areas with high distribution costs scheme: transfer of payment to the licensee and accounting requirements) to reduce the use of system charges to specified suppliers in a non-discriminatory manner in accordance with standard condition 53C (Assistance for areas with high distribution costs scheme: prohibition on engaging in preferential or discriminatory behaviour) and this condition.

2.  The licensee shall apply the benefit of the annual payment referred to in paragraph 1 on a pro-rated basis according to each specified supplier’s anticipated level of demand attributable to the requirements of those of its customers located in the specified area in the forthcoming year of demand but not to the requirements of other customers in Great Britain.

3.  In this condition:

“specified area”means the area specified in the Energy Act 2004 (Assistance for Areas with High Distribution Costs) Order 2005.
“specified supplier”means an authorised supplier as defined in section 184(13) of the Energy Act 2004 who takes demand from the GB transmission system and supplies same to customers in the specified area.

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