The Warm Home Discount (Miscellaneous Amendments) Regulations 2018

New regulations 15A and 15B (types and amounts of spending from scheme year 8)

15.  After regulation 15 insert—

“Types and amounts of spending from scheme year 8

15A.— (1) This regulation applies to a scheme year commencing on or after the fourth commencement date (“a relevant scheme year”).

(2) In each relevant scheme year, a compulsory scheme electricity supplier must incur spending under this Part to the amount of its non-core spending obligation, and in doing so—

(a) may include spending on industry initiatives under Chapter 4 and on specified activities under Chapter 5, subject to the limits in paragraphs (3) to (5);

(b) in a scheme year in which the aggregate non-core spending obligation does not exceed £50 million, must not include spending under Chapter 2; and

(c) in a scheme year in which the aggregate non-core spending obligation exceeds £50 million, must include spending under Chapter 2, which must be of no less than the relevant percentage of the amount calculated by subtracting £40 million from the aggregate non-core spending obligation, unless the Authority has notified the supplier under regulation 15B(3)(c) that it may incur spending below that amount.

(3) In each relevant scheme year in which the aggregate non-core spending obligation exceeds £5 million, the maximum amount of spending under Chapter 4 on an activity of a kind listed in the final row of the table in Schedule 4(1) that a compulsory scheme electricity supplier may count towards its non-core spending obligation is the relevant percentage of £5 million.

(4) In each relevant scheme year in which the aggregate non-core spending obligation exceeds £50 million, the maximum amount of spending under Chapters 4 and 5 combined that a compulsory scheme electricity supplier may count towards its non-core spending obligation is the relevant percentage of £40 million, unless the Authority has notified the supplier under regulation 15B(3)(c) that it may spend in excess of that amount to meet it’s non-core spending obligation.

(5) Subject to paragraph (6), 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) £10 million in scheme year 8;

(b) £8 million in scheme year 9;

(c) £6 million in scheme year 10.

(6) Paragraph (5) does not apply in a scheme year in which the aggregate non-core spending obligation is equal to, or less than—

(a) £10 million in scheme year 8;

(b) £8 million in scheme year 9;

(c) £6 million in scheme year 10.

(7) In this regulation—

“debt write-off” has the same meaning as in regulation 15(6); and

“the relevant percentage” means the percentage determined under regulation 13(2).

Adjustment of types and amounts of spending from scheme year 8

15B.— (1) If an amount of spending is notified to a compulsory scheme electricity supplier under regulation 12(7)(b) for a relevant scheme year, the supplier must notify the Authority by 15th December in the scheme year if it considers that it will not incur at least that amount of spending under Chapter 2 for the scheme year.

(2) A notification under paragraph (1) must be in such form, and contain such information, as the Authority requires.

(3) The Authority must, within 20 working days of receiving a notification under paragraph (1)—

(a) determine whether it is not reasonably practicable for the supplier to incur spending under Chapter 2 to at least the amount notified to the supplier under regulation 12(7)(b);

(b) where the Authority determines that it is not reasonably practicable for the supplier to incur at least that amount of spending, determine—

(i) the extent to which the supplier may incur spending below that amount under Chapter 2; and

(ii) the maximum amount by which the supplier may increase its spending under Chapter 4 or 5; and

(c) notify the supplier accordingly.

(4) A supplier must comply with a determination notified to it under paragraph (3)(c).

(5) In this regulation, “relevant scheme year” has the same meaning as in regulation 15A(1).”.

(1)

The final row of the table in Schedule 4 is inserted by regulation 28(2).