Legislation – The Contracts for Difference (Electricity Supplier Obligations) (Amendment) (Coronavirus) Regulations 2020

Amendments to the Contracts for Difference (Electricity Supplier Obligations) Regulations 20142.

(1)

The Contracts for Difference (Electricity Supplier Obligations) Regulations 20142 are amended as follows.

(2)

In regulation 2(1) (interpretation), after the definition of “reserve period” insert—

““SoS funds” means any financial assistance provided by the Secretary of State to the CFD counterparty (under section 154(2)(b) of the Act) for the purposes of making CFD counterparty payments and adjusting payments due from electricity suppliers in accordance with these Regulations;”.

(3)

In regulation 5 (CFD quarterly contribution)—

(a)

for the formula, substitute—

$“[(N D S + S o S r e p a y m e n t) - (N G S + D I + S o S p a y m e n t)] \times (\frac{S Q S - X E P}{T Q S - A X P})”$

(b)

after the paragraph beginning with “NDS is the sum of—” insert—

“SoS repayment is the total amount of any SoS funds that the Secretary of State had specified were to be used when calculating the CFD quarterly contribution in respect of the quarterly obligation period that ended three whole quarterly obligation periods before the quarterly obligation period for which this calculation is made;”; and

(c)

after the paragraph beginning with “DI is any” insert—

“SoS payment is the total amount of any SoS funds that the Secretary of State has specified are to be used when calculating the CFD quarterly contribution in respect of that period;”.

(4)

In regulation 7 (estimated cost, income & electricity supply)—

(a)

in paragraph (1) after “the sum of ” insert “any SoS repayment and”;

(b)

in paragraph (3) after “the sum of ” insert “any SoS funds that the Secretary of State has specified will be available in respect of that rate period and that the Secretary of State has specified should be taken into account when calculating the interim levy rate under regulation 6 and/or adjusting the levy rate under regulation 13 and”; and

(c)

in paragraph (5)—

(i)

at the end of the definition of “TCPR” omit “and”;

(ii)

at the end of the definition of “TGPR” insert—

“; and

“SoS repayment” is to be construed in accordance with regulation 5”.

(5)

In regulation 10 (reserve payments)—

(a)

in paragraph (5)(a) at the end, omit “and”; and

(b)

in paragraph (5)(b) at the end insert—

“; and

(c)

any SoS funds that the Secretary of State has specified will be available in respect of that reserve period and that the Secretary of State has specified should be taken into account when adjusting the total reserve amount”.

(6)

In regulation 14 (additional total reserve amount)—

(a)

in paragraph (2)(c) at the end omit “and”; and

(b)

in paragraph (2)(d) at the end insert—

“; and

(e)

the amount of any SoS funds that the Secretary of State has specified will be available in respect of that reserve period and that the Secretary of State has specified should be taken into account when adjusting the total reserve amount”.

(7)

In regulation 14A—

(a)

before paragraph (1) insert the following heading—

“Determination of reduced total reserve amount”; and

(b)

in paragraph (1), at the end, insert “, taking into account any SoS funds that the Secretary of State has specified will be available in respect of that reserve period and that the Secretary of State has specified should be taken into account when adjusting the total reserve amount”.

(8)

In regulation 32(2) (use of payments) after “CFD counterparty payments” insert “, making any repayments due to the Secretary of State in relation to any SoS funds which the CFD counterparty must repay to the Secretary of State at such time and in such amount as may be agreed with the CFD counterparty”.