The Warm Home Discount (Reconciliation) (Amendment) Regulations 2017

• Citation: S.I. 2017/847
• Sections: 14

Section 1 Citation, commencement and amendment of the Warm Home Discount (Reconciliation) Regulations 2011

(1) These Regulations may be cited as the Warm Home Discount (Reconciliation) (Amendment) Regulations 2017.

(2) These Regulations come into force on 16th September 2017.

(3) The Warm Home Discount (Reconciliation) Regulations 2011 are amended as follows.

Section 2 New regulation 1A (application)

After regulation 1 insert—

Application

(1A) These Regulations apply in relation to scheme years 1 to 7.

Section 3 Amendments to regulation 2 (interpretation)

In regulation 2—

(a) in the definition of “market share”, for paragraph (a) substitute—

(a) unless regulation 11 applies, the market share of the supplier, expressed as a percentage—

(i) as notified by the Authority to the Operator under regulation 4(1)(b); or

(ii) where the Authority is the Operator, as determined under regulation 4(2A); or

(b) for the definition of “the Operator” substitute—

“the Operator” means—

in relation to scheme years 1 to 6, the person for the time being appointed by the Secretary of State under regulation 3; and

in relation to scheme year 7, the Authority;

Section 4 Amendment to regulation 3 (appointment of the Operator)

After paragraph (2) insert—

(3) This regulation does not apply where the Authority is the Operator.

Section 5 Amendments to regulation 4 (provision of information to the Operator)

In regulation 4—

(a) in paragraph (1), after “appointed” insert “under regulation 3”;

(b) after paragraph (2) insert—

(2A) The Authority must, in relation to scheme year 7, determine the market share of each scheme electricity supplier as at the preceding 31st December in accordance with paragraph (3).

(2B) The Authority must make the determination under paragraph (2A) as soon as reasonably practicable after the date on which the Warm Home Discount (Reconciliation) (Amendment) Regulations 2017 come into force.

(c) in paragraph (3), for “paragraph (1)(b)” substitute “paragraphs (1)(b) and (2A)”.

Section 6 Amendment to regulation 5 (direction to carry out interim reconciliation)

In regulation 5(1)(b), for “regulation 7 of these Regulations” substitute “regulation 7(a) or, in the case of scheme year 7, to any scheme electricity supplier under regulation 7(b).”.

Section 7 Amendments to regulation 7 (notification of amounts of rebates provided)

In regulation 7—

(a) in paragraph (a), before “notify to the Operator” insert “if the Authority is not the Operator,”;

(b) for paragraph (b) substitute—

(b) notify to each scheme electricity supplier—

(i) the total amount of rebates provided to domestic customers in the scheme year, or treated as being provided in the scheme year, under Part 3 of the Scheme Regulations by that scheme electricity supplier (as determined by the Authority in accordance with regulation 29(1)(a) of the Scheme Regulations); and

(ii) the sum of the amounts so determined for all scheme electricity suppliers.

Section 8 New regulation 7A (the number of undelivered rebates)

After regulation 7 insert—

The number of undelivered rebates

(7A)

(1) This regulation applies—

(a) in relation to scheme year 6 unless, before the commencement date, the Authority has given a notification to the Operator under regulation 7(a) for that scheme year; and

(b) in relation to scheme year 7.

(2) If the Authority is not the Operator, the Authority must notify to the Operator, in respect of each scheme electricity supplier, the number of undelivered rebates provided, or treated as being provided, in the scheme year by the supplier.

(3) The Authority must give the notification under paragraph (2) as soon as reasonably practicable after the end of the period specified in regulation 9(8) of the Scheme Regulations for the scheme year.

(4) Where a scheme electricity supplier has not complied with regulation 9(7) of the Scheme Regulations for the scheme year, the Authority must estimate the number of undelivered rebates—

(a) provided by the supplier in the scheme year; or

(b) treated as being provided by the supplier in the scheme year by virtue of regulation 7(7) of the Scheme Regulations.

(5) For the purposes of paragraph (2), the number of undelivered rebates provided, or treated as being provided, in a scheme year by a scheme electricity supplier is the number notified to the Authority in accordance with regulation 9(7) of the Scheme Regulations or estimated by the Authority under paragraph (4).

(6) In this regulation—

“commencement date” means the date on which the Warm Home Discount (Reconciliation) (Amendment) Regulations 2017 come into force; and

“undelivered rebate” means a prescribed rebate provided by a scheme electricity supplier under Part 3 of the Scheme Regulations and—

provided to a customer by tendering payment of the amount of the prescribed rebate to the customer, where the customer has not accepted that payment; or

provided to a customer who pre-pays for electricity or gas with credit in the amount of the prescribed rebate against the cost of future electricity or gas use, where the customer has not accepted that credit.

Section 9 Amendments to regulation 8 (calculation of final reconciliation payments)

(1) Regulation 8 is amended as follows.

(2) In paragraph (1), at the beginning insert “Subject to paragraphs (1A) and (1B),”.

(3) After paragraph (1) insert—

(1A) In the case of scheme year 6, if regulation 7A applies in relation to the scheme year, the calculation referred to in paragraph (1) must be made as soon as reasonably practicable after the Operator has received—

(a) a notification under regulation 7(a); and

(b) a notification under regulation 7A(2) in respect of each scheme electricity supplier.

(1B) In the case of scheme year 7, the calculation referred to in paragraph (1) must be made as soon as reasonably practicable after—

(a) the Authority has given a notification under regulation 7(b) to each scheme electricity supplier; and

(b) every scheme electricity supplier has complied with regulation 9(7) of the Scheme Regulations for the scheme year, or the Authority has made an estimate under regulation 7A(4) in respect of each scheme electricity supplier that has not so complied.

(4) In paragraph (4)—

(a) for sub-paragraph (a) substitute—

(a) a scheme electricity supplier’s contribution for a scheme year is—

(i) where regulation 7A applies in relation to the scheme year, A − ( F × P ) ;

(ii) in any other case, A,

where—

A is the amount determined by the Authority under regulation 29(1)(a) of the Scheme Regulations for that supplier for the scheme year;

F is the number of undelivered rebates provided, or treated as being provided, in the scheme year by that supplier, being the number notified to the Authority in accordance with regulation 9(7) of the Scheme Regulations or estimated by the Authority under regulation 7A(4), as the case may be;

P is the amount of the prescribed rebate for the scheme year;

(b) in sub-paragraph (c), after “regulation 7(a)(ii)” insert “or notified to that supplier under regulation 7(b)(ii), as the case may be”.

Section 10 Amendment to regulation 9 (interim and final reconciliation: payments)

In regulation 9, after paragraph (3) insert—

(4) Where the Authority is the Operator, it must maintain a fund into which payments by scheme electricity suppliers and from which payments by the Operator under these Regulations are to be made.

Section 11 Amendments to regulation 11 (termination of supply licence)

In regulation 11—

(a) in paragraph (1), for “regulation 7” substitute “regulation 7(a)”;

(b) after paragraph (1) insert—

(1A) This regulation also applies in relation to a scheme year if—

(a) the Authority is the Operator in relation to the scheme year; and

(b) between the date on which the Authority makes a determination under regulation 4(2A) and the date on which the Authority gives a notification under regulation 7(b), the electricity supply licence of a scheme electricity supplier (E) is terminated.

(c) in paragraph (2), before “The Authority” insert “Where the Authority is not the Operator,”;

(d) in paragraph (5), for “Regulation (6)” substitute “Paragraph (6)”;

(e) in paragraph (6)—

(i) in the definition of “M1”, after “regulation 4(1)(b)” insert “or as determined by the Authority under regulation 4(2A), as the case may be”;

(ii) in the definition of “E1”, after “regulation 4(1)(b)” insert “or as determined by the Authority under regulation 4(2A), as the case may be”.

Section 12 Amendment to regulation 14 (appeals against errors in determinations)

In regulation 14, before paragraph (1) insert—

(A1) This regulation applies where the Authority is not the Operator.

Section 13 Amendments to regulation 15 (make-right amounts)

In paragraph (1)—

(a) in sub-paragraph (a), before “the Operator” insert “where the Authority is not the Operator,”;

(b) in sub-paragraph (b), before “a person” insert “where the Authority is not the Operator,”.

Section 14 Amendment to regulation 16 (non-performance of obligations)

In regulation 16, before paragraph (1) insert—

(A1) This regulation applies where the Authority is not the Operator.