PART 4Miscellaneous
CHAPTER 10Effect of payment and interest
Discharge of obligations by payment31
1
This regulation applies where an electricity supplier makes a payment to the CFD counterparty for the purpose of discharging its relevant obligations but that payment is insufficient to do so.
2
The CFD counterparty must use the payment—
a
first, to discharge (in whole or in part) any relevant obligation of the supplier arising under regulation 23(1);
b
where part of the payment remains, secondly, to discharge any relevant obligation of the supplier which is not one arising under regulation 23(1); and
c
where part of the payment still remains, thirdly, to discharge any obligation of the supplier to make a payment of interest.
3
Where more than one relevant obligation falls within a sub-paragraph of paragraph (2), the CFD counterparty must determine the order in which those obligations are to be discharged.
4
On the day on which the CFD counterparty uses the payment it must issue a notice to the supplier which sets out the details of—
a
any relevant obligation which has been wholly discharged;
b
any relevant obligation which has been partially discharged, and the extent to which it has been discharged; and
c
any relevant obligation which has not been discharged.
5
For the purposes of this regulation, any amount treated as a payment by an electricity supplier to the CFD counterparty by virtue of regulation 21(4) or (5) or regulation 30(3) is to be treated as a payment made by that supplier to the CFD counterparty for the purpose of discharging its relevant obligations.
6
In this regulation—
“payment of interest” means a payment of interest which is required to be made by virtue of regulation 8(6), 9(7), 11(2), 14(8), 16(5), 17(6) F1or 23(6);
“relevant obligation”, in relation to an electricity supplier, means any obligation of that supplier to make a payment under these Regulations where the date by which that payment should have been made has passed.