The Energy Bills Discount Scheme Pass-through Requirement Regulations 2023

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations make provision for pass-through requirements in relation to the Energy Bills Discount Scheme (EBDS) Regulations 2023 in England, Wales and Scotland (S.I. 2023/453) and in Northern Ireland (S.I. 2023/454). Pass-through requirements are imposed on a “relevant intermediary” (as defined in regulation 2) and establish that they must pass-through the benefits of the EBDS to an “end user” (defined in section 19(3) of the Energy Prices Act 2022 (c. 44), subject to an exception for excluded end users as defined in regulation 2) to whom energy or energy products (or both) have been made available. The Regulations apply in respect of relevant intermediaries, other than a) an “intermediary” as defined in regulation 2(1) of the Energy Bills Discount Scheme Pass-through Requirement (Heat Suppliers) Regulations 2023 (S.I. 2023/455) and b) those providing certain types of hospitality accommodation (defined as “excluded persons” under these Regulations). The Regulations also deal with adjustments to pass-through amounts which may be needed if a supply redetermination event occurs under the Energy Bills Discount Scheme Regulations 2023 or the Energy Bills Discount Scheme (Northern Ireland) Regulations 2023.

Regulation 3 establishes the requirement for relevant intermediaries to pass-through a just and reasonable amount of the benefit provided under the EBDS to each of their end users.

Regulation 4 provides for the calculation of the pass-through amount and sets out the way in which relevant intermediaries are to determine what is a just and reasonable amount for the purposes of regulation 3.

Regulation 5 sets out the information which a relevant intermediary is required to provide to each of its end users about the EBDS scheme benefit provided to it, and the amount or proportion it intends to provide to the end user together with supporting details about how it has calculated that this is a just and reasonable amount. The duty to provide information is owed by a relevant intermediary to end users and enforceable in civil proceedings.

Regulation 6 makes provision about the way in which the pass-through is to be given effect including that it must be provided to the end user as soon as reasonably practicable after the scheme benefit has been provided to the relevant intermediary.

Regulation 7 provides for unpaid pass-through amounts to be recoverable from the relevant intermediary by the end user as a civil debt.

A full impact assessment of the effect the EBDS, including the related pass-through requirements, will have on the costs of business and the voluntary sector is available from the Department for Energy Security and Net Zero, 1 Victoria Street, London, SW1H 0ET and is published with the Explanatory Memorandum alongside the instrument on www.legislation.gov.uk.