These Regulations make provision setting out the entitlement of certain persons to electricity support payments and how such payments are to be funded (through a levy on electricity suppliers) and administered. Claims made in respect of any month will be funded through levy payments made a year later and then paid to claimants in the month after that.

Regulation 4 defines certain terms used in these Regulations, including in relation to the “network charges” in respect of which claims for support can be made.

Regulation 5 specifies the activities which can form the basis of an application for support, drawing on existing definitions in the Electricity Supplier Obligations (Amendment & Excluded Electricity) Regulations 2015.

Regulation 6 appoints Elexon Ltd (“Elexon”) as the administrator for both the support payments and the levy.

Regulation 7 makes provision for those carrying out specified activities to be able to apply for support payments every quarter and sets out the information to be included in such applications.

Regulation 8 requires the administrator to publish an estimate of the size of each monthly levy, six months before it is to be recovered.

Regulation 9 establishes powers for the support payments administrator to be able to acquire further information when it needs it and sets out how to determine the amount of the network charges for which each applicant can make a claim for support.

Regulation 10 allows for corrections to be made to support payment entitlements, for example where network charges are adjusted in light of updated information. Such corrections are then included in the next round of applications to be considered by the administrator.

Regulations 11 and 12 make provision for disputing determinations made about an applicant’s entitlement to support payments.

Regulation 13 makes provision for the calculation of the total entitlement of an applicant in respect of each claim month, including resulting from corrections and resolved disputes.

Regulations 14 and 17 make similar provision, allowing the EII support payments administrator and the EII levy administrator (respectively) to add its administrative costs for the previous month to the levy total, for recovery under the levy. Regulations 14(2) and 17(2) also make specific provision allowing that administrator to recover its costs in other ways (though not to double recover). This might, for example, allow Elexon to recover its costs under the Balancing and Settlement Code instead.

Regulation 15 requires the EII support payments administrator to make provision for and hold a reserve fund. Provision is also made for a phased scaling up of the levy so electricity suppliers are not required to deliver it in the first month.

Regulation 16 requires the EII support payments administrator to inform the EII levy administrator of the sum it thinks needs to be recovered under the levy in the next month.

Regulation 18 makes provision for how the EII levy administrator is to calculate the scale of each electricity supplier’s liability under each levy month. Paragraph (4) has the effect of carving EII excluded electricity out of the calculations which make up the individual levy liabilities, so no levy is chargeable in respect of electricity which is EII excluded electricity.

Regulation 19 creates the statutory obligation on electricity suppliers to pay the levy as determined by the EII levy administrator.

Regulations 20 to 22 make provision for electricity suppliers to correct or dispute the findings of the EII levy administrator in making levy calculations.

Regulation 23 makes provision or the EII levy administrator to be able to make a mutualisation charge. This takes effect where one or more suppliers have failed to pay their levy payments and there is not enough in the reserve fund (regulation 15) to cover the shortfall.

Regulations 24 and 25 make provision for the EII levy administrator to recover its relevant costs and transfer the remaining sums to the EII support payment administrator, which is then entitled to recover its own costs and disseminate the remainder among applicants.

Regulation 26 allows holders of EII certificates to seek information from their electricity suppliers, in order to allow them to exercise certain functions under these Regulations.

Regulation 27 allows the Secretary of State to require information for purposes relating to these Regulations.

Regulation 28 creates a duty on Elexon to provide information and advice to the Secretary of State.

Regulation 29 limits the purposes for which information acquired under these Regulations can be used or transferred.

Regulation 30 allows for enforcement of debts under these Regulations and simple interest to accrue on them.

Regulation 31 makes provision for Elexon to withdraw its consent to be one or both of the relevant administrators by giving six months’ notice. If no replacement is found the positions revert to the Secretary of State.

An impact assessment setting out the key impacts of this policy has been completed. The Impact Assessment is published with the Explanatory Memorandum alongside this instrument on www.legislation.gov.uk. A copy is also available by contacting EII.correspondence@businessandtrade.gov.uk, or the Department for Business and Trade at Old Admiralty Building, Admiralty Place, London, SW1A 2DY.