The Green Gas Support Scheme Regulations 2021

Levy credit payments

42.—(1) In relation to the scheme year beginning with 1st April 2022 and subsequent scheme years, the Authority must notify a scheme supplier of that scheme supplier’s credit cover requirement for each quarter—

(a) no later than 21 days before the start of that quarter, or

(b) where regulation 41(2)(b) applies, as soon as reasonably practicable.

(2) Where a scheme supplier’s credit cover requirement for a quarter exceeds their existing credit cover, or where the scheme supplier has no existing credit cover, the notification referred to in paragraph (1) must—

(a) specify—

(i) the amount (the “deficit amount”) by which the scheme supplier’s credit cover requirement for the quarter exceeds their existing credit cover,

(ii) the date by which the scheme supplier must pay the deficit amount to the Authority, being a date not less than 14 days after the date on which the notification referred to in paragraph (1) is given, and no later than seven days before the start of that quarter, and

(iii) details of how the payment (the “levy credit payment”) must be made, and

(b) include information about the matters mentioned in—

(i) regulation 43 (letters of credit), and

(ii) regulation 55 (draw down of credit cover).

(3) Subject to regulation 43(1) and (2), a scheme supplier—

(a) must pay any levy credit payment to the Authority in accordance with the notification referred to in paragraph (1),

(b) where—

(i) they have provided an acceptable letter of credit in respect of all or part of their credit cover requirement for a quarter, and

(ii) that letter of credit ceases to constitute an acceptable letter of credit,

must, within 14 days of the letter of credit ceasing to constitute an acceptable letter of credit, pay such amount to the Authority as is necessary so as to ensure that their existing credit cover for that quarter is no less than their credit cover requirement for that quarter,

(c) where the amount of their existing credit cover is reduced as a result of a draw down to pay the whole or any part of a mutualisation payment in accordance with regulation 55 must, within 14 days of the date on which their existing credit cover is so reduced, pay such amount to the Authority as is necessary to ensure that their existing credit cover for the quarter in which the draw down took place is no less than their credit cover requirement for that quarter.

(4) Amounts paid to the Authority under this regulation must be paid into a bank account with the Authority as the beneficiary.

(5) Where a scheme supplier’s existing credit cover exceeds their credit cover requirement, the notification referred to in paragraph (1) must—

(a) specify the amount (“the excess amount”) by which the scheme supplier’s existing credit cover exceeds their credit cover requirement, and

(b) where any part of the scheme supplier’s existing credit cover has been paid to the Authority, include information about the matters mentioned in regulation 45 (repayment of levy credit payments).

(6) For the purposes of this regulation, “existing credit cover”, in relation to a scheme supplier, means the total amount that supplier has—

(a) paid to the Authority in accordance with this regulation, and which continues to be held by the Authority, and

(b) provided to the Authority in the form of a letter of credit in accordance with regulation 43, and which continues to be an acceptable letter of credit.