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The Green Gas Support Scheme Regulations 2021

Type Statutory-Instrument

Publication 2021-11-29

Last updated 2025-11-01

State In force

Department King's Printer of Acts of Parliament

Source legislation.gov.uk

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“estimated spend”, in relation to an assessment date and a relevant producer, means—except where paragraph (b) applies, the estimated energy from biomethane multiplied by the initial tariff or subsequent tariff, orin relation to a person who proposes to produce biomethane in respect of which there is a pending tariff guarantee—biomethane up to 250GWh multiplied by the initial tariff or subsequent tariff applicable to that estimated energy from biomethane, andthe estimated residual energy from biomethane, if any, multiplied by the initial tariff or subsequent tariff applicable to that estimated energy from biomethane;

“forecast for expenditure”, in relation to an assessment date, means the sum as at that assessment date of the estimated spend for each relevant producer;

“pending tariff guarantee” means a tariff guarantee which has been granted but does not include a case where—the producer of biomethane in respect of which the tariff guarantee was granted is registered as a participant,an application for registration has been made in respect of such a producer of biomethane, ora tariff guarantee has been revoked;

“relevant producer” means—a participant who produces or proposes to produce biomethane for injection by anaerobic digestion,a person who produces or proposes to produce biomethane for injection by anaerobic digestion who has made an application for registration but does not include a person who has made an application—which has been rejected by the Authority, orwhich has been withdrawn by the applicant, ora producer of biomethane in respect of which there is a pending tariff guarantee.

Periodic support payments

18

Subject to Part 6 (compliance and enforcement: participants), the Authority must make payments (“periodic support payments”) to participants in accordance with this Part out of funds available to it for the purposes of the Scheme.

Publication of tariffs

19

The Authority must—

(a) by 15th March, 15th June, 15th September and 15th December in each scheme year (“the tariff publication date”) publish the initial tariff applicable where a tariff start date falls within the quarter immediately following the relevant tariff publication date, and

(b) on or before 1st April in each scheme year, publish the subsequent tariff applicable for the period beginning with 1st April of that year and ending with 31st March of the following year.

Expenditure forecast statement and tariff change notice

20

(1) The Secretary of State must publish a statement in accordance with this regulation (“an expenditure forecast statement”).

(2) The expenditure forecast statement must be published by 1st March, 1st June, 1st September and 1st December in each scheme year, beginning with 1st March 2022.

(3) For that purpose the Secretary of State must determine the forecast for expenditure in relation to relevant producers, as at the assessment date immediately preceding the date on which the expenditure forecast statement is to be published (“the latest assessment date”).

(4) An expenditure forecast statement must set out the forecast for expenditure in relation to relevant producers, as at the latest assessment date.

(5) If the new initial tariff will be different from the former initial tariff—

(a) as a result of a forecast referred to in paragraph (3), and by virtue of regulation 22(2) (calculation of initial tariffs and tariff review), or

(b) by virtue of regulation 22(4),

the Secretary of State must publish with the expenditure forecast statement a notice (a “tariff change notice”) setting out the new initial tariff and the date on which it will take effect.

(6) For the purposes of paragraph (5)—

(a) “new initial tariff” means the initial tariff for biomethane produced for injection, having a tariff start date which falls within the next quarter, and

(b) “former initial tariff” means the initial tariff that would have been applicable to the biomethane produced for injection if the tariff start date had fallen on the day immediately preceding the commencement of that quarter.

Calculation and payment of periodic support payments to participants

21

(1) Periodic support payments are payable for 15 years from the tariff start date.

(2) Paragraph (1) is subject to—

(a) regulation 8 (additional biomethane),

(b) regulation 14 (review of registration following notification of a change in circumstances),

(d) regulation 16 (withdrawal of participant),

(e) regulation 29 (power to temporarily withhold periodic support payments to investigate alleged non-compliance),

(f) regulation 30 (power to withhold periodic support payments: further provisions),

(g) regulation 31 (power to reduce a participant’s periodic support payments),

(h) regulation 32 (revocation of registration),

(i) regulation 33 (power to correct the level of tariff being paid to a participant), and

(j) regulation 34 (overpayment notices and offsetting).

(3) Subject to regulation 4(9) (tariff guarantees), the tariff to be used for the purpose of calculating periodic support payments is—

(a) for the period beginning with the tariff start date and ending with the end of the financial year in which that tariff start date falls, the initial tariff, and

(b) for each subsequent financial year, the subsequent tariff.

Calculation of initial tariffs and tariff review

22

(1) The initial tariff for a producer of biomethane, where the tariff start date is on or before 30th June 2022, is—

(a) tier 1: 5.51 pence per kWh,

(b) tier 2: 3.53 pence per kWh,

(2) Except as provided in paragraphs (3) and (4), the initial tariff for a producer of biomethane, where the tariff start date is on or after 1st July 2022, is calculated in accordance with the formula—

where—A is calculated in accordance with regulation 23, andB is calculated in accordance with regulation 24 in relation to the assessment date immediately preceding the commencement of the quarter in which the tariff start date falls.

(3) The Secretary of State may—

(a) review the initial tariff by no later than 1st September in each of 2022, 2023, 2024 , 2025, 2026 and 2027, and

(b) as a result of such a review—

(i) increase or decrease the initial tariff, provided that such increase or decrease may only take effect on 1st October immediately following the review (“the relevant date”), or

(ii) determine that the initial tariff remains unchanged.

(4) Where the initial tariff is increased or decreased as a result of a review described in paragraph (3), the initial tariff for a producer of biomethane where the tariff start date falls in the quarter beginning with the relevant date, is the initial tariff as so increased or decreased.

Calculation of A

23

(1) For the purposes of regulation 22(2), A is calculated as follows.

(2) Where the tariff start date is within any quarter beginning with 1st April, A is the relevant tariff which would have applied had the tariff start date fallen within the previous quarter (“the previous tariff”), adjusted by the percentage increase or decrease in the consumer prices index for the calendar year ending with 31st December immediately preceding the commencement of that quarter, the resulting figure being rounded.

(3) Where the tariff start date is within any quarter beginning with 1st July, 1st October or 1st January, A is the previous tariff.

Calculation of B

24

(1) For the purposes of regulation 22(2), B is calculated as follows.

(2) The Secretary of State—

(a) must determine and publish the expenditure threshold figure in relation to each assessment date,

(b) may review the published expenditure threshold figure following a review under regulation 22(3)(a), and

(i) increase or decrease the published expenditure threshold figure provided that such increase or decrease may only take effect on 1st October immediately following the review, or

(ii) determine that the published expenditure threshold figure remains unchanged.

(3) B is 0 (zero) unless paragraph (4) applies.

(4) B is 0.10 in relation to the assessment date if, as at that assessment date, the forecast for expenditure exceeds the expenditure threshold figure in relation to that assessment date.

Calculation of subsequent tariffs

25

In relation to a particular financial year, the subsequent tariff is the tariff applicable to the biomethane produced by the participant on the last day of the previous financial year, adjusted by the percentage increase or decrease in the consumer prices index for the calendar year ending with 31st December immediately preceding the commencement of that subsequent financial year, the resulting figure being rounded.

Tariff tiers

26

(1) For the purposes of calculating an initial tariff under regulation 22(2), or a subsequent tariff under regulation 25, the applicable tier of that tariff is—

(a) tier 1, in relation to initial biomethane,

(b) tier 2, in relation to secondary biomethane, and

(2) In paragraph (1)—

(a) “initial biomethane” means the amount of eligible biomethane measured in megawatt hours which is injected in a relevant period, up to 60,000 megawatt hours,

(b) “secondary biomethane” means the amount of eligible biomethane measured in megawatt hours injected in a relevant period in excess of the initial biomethane, up to an additional 40,000 megawatt hours, and

(c) “tertiary biomethane” means the amount of eligible biomethane measured in megawatt hours injected in a relevant period in excess of the secondary biomethane, subject to paragraph (3).

(3) Where more than 250GWh of biomethane is injected in any relevant period, the initial tariff or the subsequent tariff will apply to the first 250GWh of such biomethane only.

(4) In this regulation—

“applicable tier”, in relation to an initial tariff or a subsequent tariff, means the numbered tier of that tariff, the rate for which applies in determining the initial tariff or subsequent tariff for biomethane production, and

“relevant period” means a 12 month period beginning with the tariff start date, or with the anniversary of the tariff start date.

Periodic support payments to participants

27

(1) Subject to paragraphs (3) and (6), regulation 7(2) (treatment of grants from public funds) and regulation 28 (reconciliation payments), participants must be paid a periodic support payment in respect of each quarter, or part of a quarter, during which they are a participant, calculated in accordance with the following formula—

where—A is the amount of eligible biomethane in kWh which is injected in that quarter, andB is the tariff applicable to the eligible biomethane determined in accordance with regulation 21 (calculation and payment of periodic support payments to participants).

(2) In this regulation, “eligible biomethane” means the amount in kWh of all biomethane or the notified proportion of biomethane injected in a quarter determined in accordance with the following formula—

$(C - (D + E + F + G)) × H$

where—

(a) C is the lower of—

(i) the amount in kWh of all biomethane or the notified proportion of biomethane injected in that quarter, and

(ii) the amount in kWh of biomethane the participant is entitled to supply for injection in that quarterly period under the network entry agreement,

provided that the sum of the values for C in respect of a scheme year may not exceed the sum of the kWh equivalent of the maximum initial capacity specified under regulation 6(3) (determination of application for registration) and any maximum additional capacity specified under regulation 8 (additional capacity for biomethane production),

(b) D is the amount of propane in kWh contained in C,

(i) the heat in kWhth delivered in the relevant quarter to every anaerobic digester which produced the biogas from which the biomethane is made, except any heat contained in feedstock used to produce that biogas, or derived from the combustion of that biogas, or derived from a registered eligible heat pump, or

(ii) such proportion (as may be chosen by the participant and agreed by the Authority) of that heat provided that the proportion is no less than—

$XY$

where—

(aa) X is the energy content of the biogas contained in biomethane, and

(bb) Y is the energy content of all the biogas produced by that anaerobic digester,

(d) F is the amount in kWhth of heat supplied to the biomethane production process in that quarter from any heat source, other than heat generated from the combustion of biogas produced in every anaerobic digester that produced the biogas from which the biomethane is made, or derived from a registered eligible heat pump,

(e) G is, the total amount in kWh of electricity supplied to a registered eligible heat pump in that quarter, and

(f) H is, subject to regulation 9(6) and paragraph (8), the proportion of biomass contained in the feedstock used in that quarter to produce that biogas.

(3) In paragraph (2), “notified proportion of biomethane” means the proportion of biomethane which the participant specifies in a notice to the Authority as the proportion of the total amount of biomethane in kWh injected in a quarter which is to be taken into account when determining the amount of eligible biomethane for that quarter.

(4) The notified proportion of biomethane must be taken into account in determining values C to F in the formula in paragraph (2).

(5) A participant must notify the Authority of the total amount of biomethane in kWh injected in a quarter.

(6) The Authority must not make a periodic support payment to a participant in respect of any proportion of biomethane injected in a quarter where the Authority is aware that an RTF certificate has been issued under the Renewable Transport Fuel Obligations Order 2007²⁹ in respect of that proportion of biomethane.

(7) Where a participant is registered in respect of additional biomethane which forms part of the eligible biomethane injected in the quarter referred to in paragraph (1) and the tariff for the additional biomethane differs from the tariff for any other biomethane in respect of which the participant is registered, the periodic support payment for the participant for that quarter is the sum of—

(a) the amount of eligible biomethane in kWh which is original biomethane multiplied by the tariff applicable to that biomethane determined in accordance with regulation 21 (calculation and payment of periodic support payments to participants), and

(b) the amount of any eligible biomethane in kWh which is additional biomethane multiplied by the tariff applicable to that biomethane determined in accordance with regulation 21.

(8) Where a participant uses feedstock partly derived from fossil fuel, the periodic support payment calculated in accordance with this regulation must be reduced pro rata to reflect the percentage of the energy content of gas produced by anaerobic digestion from the fossil fuel in that feedstock used by the participant in the relevant quarter.

(9) Periodic support payments in respect of a quarter ending before 1st April 2022 are not payable before that date.

(10) For the purposes of paragraph (6), “RTF certificate” has the meaning given in section 127(1) of the Energy Act 2004.

(11) In this regulation—

“registered eligible heat pump” means an eligible heat pump that is registered by the Authority under regulation 8A.

Reconciliation payments for biomethane

28

(1) This regulation applies in relation to biomethane produced for injection, including additional biomethane, where in any payment year less than 50% of the total biogas yield is derived from waste or residue.

(2) Where this regulation applies, the sum of the periodic support payments for a payment year must be reduced to the amount calculated in accordance with the following formula—

where— A is the sum of the periodic support payments for biogas or biomethane for that payment year calculated in accordance with regulation 27 (periodic support payments to producers of biomethane), and B is the proportion of the total biogas yield for that payment year which is not derived from waste or residue, expressed as a decimal and rounded to four decimal places.

(3) To account for the reduction calculated under paragraph (2), the Authority must—

(a) offset the amount by which the periodic support payments for that payment year have been reduced against periodic support payments in the subsequent payment year, or

(b) where the payment year is the participant’s final payment year, require the participant to repay the amount by which the periodic support payments for that payment year have been reduced.

(4) Where a participant is required to repay an amount under paragraph (3)(b) and fails to make payment in full by the date specified by the Authority, the Authority may recover any outstanding sum as a civil debt.

(5) For the purposes of this regulation—

“biogas yield” means the energy content of any biogas produced by anaerobic digestion which is an ingredient of that biomethane, and

“payment year” means any 12 month period beginning with the tariff start date, or with the anniversary of the tariff start date.

PART 6 — Compliance and enforcement: participants

Power to temporarily withhold periodic support payments to investigate alleged non-compliance

29

(1) Where the Authority has reasonable grounds to suspect that a participant—

(a) has failed or is failing to comply with an ongoing participant obligation, or

(b) has been registered as a result of the provision of information which was incorrect in a material particular,

and the Authority requires time to investigate, it may withhold all or part of that participant’s periodic support payments pending the outcome of that investigation.

(2) Within 21 days of making a decision under paragraph (1) to withhold periodic support payments, the Authority must give a notice to the participant specifying—

(a) the respect in which the Authority suspects the participant has failed or is failing to comply with an ongoing participant obligation, or a description of the information which the Authority suspects to be incorrect and upon which the registration was based,

(b) the reason why periodic support payments are being withheld,

(d) the next steps in the investigation, and

(e) details of the participant’s right of review under regulation 62.

(3) The Authority’s investigation must be commenced and completed as soon as is reasonably practicable.

(4) The Authority may—

(a) request such information from the participant as it reasonably requires to enable it to carry out its investigation, and

(b) withhold a participant’s periodic support payments for a maximum period of six months beginning with the date specified in the notice in accordance with paragraph (2)(c).

(5) The Authority must review its decision to withhold a participant’s periodic support payments every 30 days after the date of the notice required by paragraph (2).

(6) Following a review pursuant to paragraph (5), the Authority must give a notice to the participant providing an update on—

(a) the progress of any investigation, and

(b) whether the Authority intends to continue to withhold periodic support payments.

(7) For the purposes of calculating the period specified in paragraph (4)(b), no account is to be taken of any period attributable to the participant’s delay in providing the information requested by the Authority under paragraph (4)(a).

(8) For the purposes of paragraph (7), a participant is not to be treated as having delayed in providing information if that participant provides the information within two weeks of a request from the Authority.

(9) Subject to paragraph (11), immediately upon conclusion of its investigation under this regulation, the Authority must give a notice to the participant specifying—

(a) the outcome of the investigation,

(b) the action the Authority proposes to take under this Part, and

(10) Subject to paragraph (11), where the Authority concludes that there has been no breach of an ongoing participant obligation or no provision of incorrect information, it must resume payment of periodic support payments and pay to the participant any periodic support payments withheld during the course of its investigation.

(11) Within the period specified in paragraph (4)(b), the Authority must either resume payment of periodic support payments or give a notice to the participant under one or more of the following—

(a) regulation 30 (power to withhold periodic support payments: further provisions),

(b) regulation 31 (power to reduce a participant’s periodic support payments),

(d) regulation 33 (power to correct the level of tariff being paid to a participant),

(e) regulation 34 (overpayment notices and offsetting).

Power to withhold periodic support payments: further provisions

30

(1) Where the Authority—

(a) is satisfied that a participant—

(i) has failed or is failing to comply with an ongoing participant obligation, or

(ii) has been registered as a result of the provision of information which was incorrect in a material particular, or

(b) has reasonable grounds to suspect the matters in sub-paragraph (a)(i) or (ii), and is unable to conclude its investigation under regulation 29 within six months of the date specified in the notice in accordance with paragraph (2)(c) of that regulation as a result of the participant’s delay in providing any information reasonably requested by it,

it may withhold all or part of that participant’s periodic support payments.

(2) For the purposes of paragraph (1)(a)(i) and regulations 31(1) and 32(1)(a), the Authority is satisfied that a participant has failed or is failing to comply with a requirement referred to in—

(a) regulation 9(13) (ongoing participant obligations in relation to digestate), or

(b) regulation 10(1)(j) (ongoing participant obligations in relation to planning permission, environmental permits, etc.),

if it receives notification that the participant is in breach of that requirement from a court, a tribunal, or any other person responsible for enforcing the requirement.

(3) Within 21 days of making a decision under paragraph (1) to withhold periodic support payments, the Authority must give a notice to the participant specifying—

(a) where there has been a failure to comply with an ongoing participant obligation, the respect in which the Authority is satisfied that the participant has failed or is failing to comply,

(b) where the participant was registered as a participant as a result of the provision of incorrect information, details of the respect in which the information was incorrect,

(c) where paragraph (1)(b) applies, details of the respect in which the participant delayed in providing information requested by the Authority,

(d) the amount of periodic support payments that the Authority intends to withhold in respect of each quarter,

(e) the date from which periodic support payments are being withheld,

(f) where applicable, the steps that the participant must take to satisfy the Authority that it is complying with the ongoing participant obligation,

(g) where applicable, the steps that the participant must take to satisfy the Authority that, notwithstanding the provision of incorrect information, the participant should continue to be registered,

(h) where applicable, the information the participant must provide to the Authority,

(i) the date by which the steps referred to in sub-paragraph (f) or (g) must be completed or the information mentioned in sub-paragraph (h) must be provided,

(j) the consequences of the participant failing to take the steps mentioned in sub-paragraph (f) or (g), or failing to provide the information mentioned in sub-paragraph (h), by the date specified, and

(k) details of the participant’s right of review under regulation 62.

(4) The Authority may extend the time specified under paragraph (3)(i) where it is satisfied that it is reasonable to do so.

(5) Where the Authority is satisfied that the participant has—

(a) taken the steps specified in the notice in accordance with paragraph (3)(f) or (g), whether on the basis of information provided by the participantor, in the case of a failure to comply with a requirement referred to in regulation 9(13) or 10(1)(j), on the basis of information provided by a person responsible for enforcing that requirement, or

(b) provided the information specified in the notice in accordance with paragraph (3)(h),

as applicable, within the time specified, it must resume payment of the periodic support payments.

(6) If, within six months of receipt by the participant of a notice sent under paragraph (3), the Authority is satisfied that the participant has taken the steps specified in that notice, the Authority may pay, within 28 days of being so satisfied, all periodic support payments withheld under this regulation.

Power to reduce a participant’s periodic support payments

31

(1) Where the Authority is satisfied that there has been a material or repeated failure by a participant to comply with an ongoing participant obligation during any quarter and the periodic support payment for that quarter has not been paid, the Authority may take one or more of the following actions—

(a) reduce the participant’s periodic support payment by an amount which corresponds to the proportion of that quarter during which the participant failed so to comply,

(b) reduce a participant’s periodic support payment for that quarter or for the quarter immediately following.

(2) Within 21 days of making a decision under paragraph (1) to reduce a periodic support payment, the Authority must give a notice to the participant specifying, as applicable—

(a) the respect in which the participant has failed to comply with an ongoing participant obligation,

(b) the period in respect of which any periodic support payment is to be reduced,

(d) details of the participant’s right of review under regulation 62.

(3) In reducing a periodic support payment in accordance with paragraph (1)(b), the Authority may determine the level of the reduction (taking into consideration all factors which it considers relevant) up to a maximum reduction of 10% of the periodic support payment in question.

Revocation of registration

32

(1) Where the Authority is satisfied—

(a) that there has been a material or repeated failure by a participant to comply with an ongoing participant obligation,

(b) a participant has been registered as a result of the provision of information which was incorrect in a material particular, or

it may take either of the actions in paragraph (2).

(2) The actions in this paragraph are that the Authority may—

(a) revoke that participant’s registration, or

(b) in the case of a producer of biomethane who is registered as a participant more than once, revoke all of their registrations.

(3) Before revoking a registration under this regulation, the Authority must give a notice to the participant specifying—

(a) the reason for the intended revocation including details of the respect in which the participant has failed to comply or the information was incorrect,

(b) an explanation of the effect of the revocation, and

(4) Where a participant’s registration has been revoked, the Authority—

(a) must update the central register accordingly, and

(b) may refuse to register that person or a connected person as a participant at any future date.

Power to correct the level of tariff being paid to a participant

33

(1) Where periodic support payments are being paid to a participant in accordance with a guaranteed tariff, if the Authority is satisfied that the information upon which the tariff guarantee was based was incorrect in a material particular it may—

(a) revoke that participant’s registration, or

(b) reduce the level of periodic support payments to the level which would have applied had the tariff guarantee not been granted.

(2) Before revoking a registration or reducing the level of periodic support payments under this regulation, the Authority must give a notice to the participant specifying, as applicable—

(a) the reason for the intended revocation or reduction including details of the respect in which the information upon which the tariff guarantee was based was incorrect,

(b) an explanation of the effect of the revocation,

(d) the basis on which those payments are calculated, and

(e) details of the participant’s right of review under regulation 62.

Overpayment notices and offsetting

34

(1) Where the Authority is satisfied that a participant has received periodic support payments which—

(a) exceed that participant’s entitlement,

(b) were paid whilst there was a failure by that person to comply with an ongoing participant obligation, or following such a failure, or

it may take one of the actions set out in paragraph (2).

(2) The actions in this paragraph are that the Authority may—

(a) require a participant who has received periodic support payments to which paragraph (1) applies, to repay a specified sum in relation to some or all of those payments, or

(b) offset a specified sum in relation to some or all of those payments against future periodic support payments.

(3) Before taking either of the actions set out in paragraph (2), the Authority must give a notice to the participant specifying—

(a) the sum it is seeking to recover,

(b) the basis on which that sum has been calculated,

(d) where applicable, the date by which the sum must be repaid,

(e) where applicable, the amount which will be offset in each quarter and the time it will take for the sum to be recovered, and

(f) details of the participant’s right of review under regulation 62.

(4) Where a participant is required to repay a specified sum under this regulation and fails to make payment in full by the date specified under paragraph (3)(d), the Authority may recover any outstanding sum as a civil debt.

Revocation of sanctions

35

(1) The Authority may at any time revoke a sanction imposed in accordance with any of regulations 29 to 34 if it is satisfied that—

(a) there was an error involved in the original imposition of the sanction, or

(b) it is just and equitable in the particular circumstances of the case to do so.

(2) Within 21 days of a decision to revoke a sanction, the Authority must give a notice to the participant specifying—

(a) the sanction which has been revoked,

(b) the reason for the revocation,

(c) what action if any the Authority proposes to take in relation to any loss reasonably incurred by the participant as a result of the imposition of the sanction including the time within which any action will be taken, and

(d) details of someone within the Authority whom the participant may contact if they are not satisfied with the proposals made by the Authority under sub-paragraph (c).

Power to inspect equipment used to produce biomethane

36

(1) The Authority or its authorised agent may request access without notice at any reasonable hour to inspect equipment used to produce biomethane and its associated infrastructure to do any one or more of the following—

(a) verify that the participant is complying with all applicable ongoing participant obligations,

(b) verify meter readings,

(d) take photographs, measurements or video or audio recordings, and

(e) ensure that there is no other contravention of these Regulations.

(2) Within 21 days of a request made under paragraph (1) being, in the opinion of the Authority, unreasonably refused the Authority must give a notice to the participant specifying—

(a) the reason why the Authority considers the refusal to be unreasonable,

(b) the consequences of the refusal, including potential sanctions for failing to comply with the ongoing participant obligation imposed by regulation 10(1)(f) (ongoing participant obligation to allow access), and

Application of this Part in relation to former participant

37

Where a producer of biomethane (“P”) ceases to be a participant by virtue of the operation of regulation 16 (withdrawal of participant), or regulation 32 (revocation of registration), this Part applies to P as if P were still a participant, with the following modifications—

(a) regulation 32 does not apply,

(b) regulation 33 does not apply to the extent that it provides for the Authority to revoke a participant’s registration,

(c) regulation 34 does not apply to the extent that it provides for the Authority to offset a specified sum against future periodic support payments,

(d) regulation 36 applies, but as if—

(i) in paragraph (1)(a), for the words “is complying” there were substituted “had complied”, and

(ii) in paragraph (1)(e), for the word “is” there were substituted “was”.

PART 7 — The levy

CHAPTER 1 — Introductory

Scheme suppliers, provisionally exempt suppliers, and exempt suppliers

38

(1) Subject to the following paragraphs, a licensed gas supplier (“GS”) who is a fossil fuel supplier³⁰ is ascheme supplier.

(2) GS is not a scheme supplier in relation to the scheme year beginning with 1st April 2022, or a subsequent scheme year, where the Authority determines in accordance with paragraph (10) that at least 95% of the gas supplied by GS in the scheme year was certified biomethane and that they are an exempt supplier in relation to that scheme year.

(3) Where GS considers it is likely that they will be an exempt supplier in relation to a scheme year (the “relevant scheme year”), GS must—

(a) notify the Authority of that fact—

(i) in relation to the scheme year beginning with 1st April 2022, by the tenth working day after the day on which these Regulations come into force,

(ii) in relation to the scheme year beginning with 1st April 2023 and any subsequent scheme year, by the relevant date specified in the scheme schedule,

(b) provide the Authority with such other information as the Authority may request in support of that notification, and

(c) provide written confirmation from a responsible officer of GS that the information provided in accordance with sub-paragraphs (a) and (b) is correct.

(4) Where the Authority receives a notification referred to in paragraph (3)(a)—

(a) it may instruct, or it may require GS to instruct, a person who is not a connected person in relation to GS to consider the information provided in accordance with paragraph (3)(a) and (b) and prepare a report (an “assurance report”),

(b) GS must provide to the Authority a copy of any assurance report prepared on their instruction, and the Authority must provide to GS a copy of any assurance report prepared on its instruction,

(c) having considered the information provided in accordance with paragraph (3)(a) and (b), and any assurance report prepared in accordance with sub-paragraph (a), it must determine whether it is likely that GS will be an exempt supplier in relation to the relevant scheme year, and notify GS of that determination—

(i) in relation to the scheme year beginning with 1st April 2022, by 1st March 2022,

(ii) in relation to the scheme year beginning with 1st April 2023 and subsequent scheme years, by 31st October preceding the start of the relevant scheme year.

(5) An assurance report must comply with such requirements as the Authority may specify.

(6) Where the Authority determines it is likely that GS will be an exempt supplier in relation to the relevant scheme year, GS is a provisionally exempt supplier in relation to that scheme year, and—

(a) subject to paragraph (12), GS is not required to comply with the requirements on scheme suppliers set out in these Regulations, apart from this regulation and regulations 46 to 48 (additional obligations on scheme suppliers) in relation to the relevant scheme year,

(b) the Authority may not commence or continue compliance or enforcement action under Part 10 in relation to any breach of these Regulations by GS, apart from this regulation and regulations 46 to 48, which occurred in relation to the relevant scheme year,

(d) the notification required by paragraph (4)(c) must state that GS—

(i) is a provisionally exempt supplier in relation to the relevant scheme year, and

(ii) is not required to comply with the requirements on scheme suppliers set out in these Regulations in relation to the relevant scheme year, apart from this regulation and regulations 46 to 48.

(7) Where the Authority determines it is not likely that GS will be an exempt supplier in relation to the relevant scheme year, the notification required by paragraph (4)(c) must state that GS is not a provisionally exempt supplier in relation to the relevant scheme year.

(8) Where at least 95% of the gas supplied by GS in a scheme year was certified biomethane GS must by 1st July following the end of that scheme year—

(a) notify the Authority of that fact,

(b) provide the Authority with evidence, supplied under an approved certification scheme, that at least 95% of the gas supplied by them in that scheme year was certified biomethane, and

(9) Where GS was a provisionally exempt supplier in relation to a scheme year and less than 95% of the gas supplied by them in that scheme year was certified biomethane GS must by 1st July following the end of that scheme year—

(a) notify the Authority of that fact, and

(b) provide the Authority with such information in relation to the gas supplied by them in that scheme year as the Authority may request.

(10) Where the Authority receives a notification and the information required by paragraph (8)—

(a) it must determine, on the basis of that information, whether at least 95% of the gas supplied by GS in the scheme year was certified biomethane,

(b) it must notify GS of that determination by the relevant date specified in the scheme schedule,

(c) where the Authority determines that at least 95% of the gas supplied by GS in the scheme year was certified biomethane—

(i) GS is exempt from the requirements of these Regulations (an “exempt supplier”) in relation to that scheme year, and

(ii) the notification required by sub-paragraph (b) must state that GS is an exempt supplier in relation to that scheme year,

(d) where the Authority determines that less than 95% of the gas supplied by GS in the scheme year was certified biomethane, the notification required by sub-paragraph (b) must state that GS is not an exempt supplier in relation to the scheme year.

(11) Where GS was a provisionally exempt supplier in relation to a scheme year and—

(a) provides a notification required by paragraph (9), and

(b) does not provide a notification and information in accordance with paragraph (8),

in relation to that scheme year, the Authority must notify GS that they are not an exempt supplier in relation to that scheme year by the relevant date specified in the scheme schedule.

(12) Where GS—

(a) was a provisionally exempt supplier in relation to a scheme year, and

(b) is notified in accordance with paragraph (10)(b) or (11) that they are not an exempt supplier in relation to that scheme year,

GS is not required to comply with the requirements on scheme suppliers set out in this Part, apart from this regulation, in relation to that scheme year.

(13) Where GS—

(a) was not a provisionally exempt supplier in relation to a scheme year, and

(b) is notified in accordance with paragraph (10)(b) that they are an exempt supplier in relation to that scheme year,

GS is treated, from the date of that notification, as an exempt supplier in relation to that scheme year.

(14) The Secretary of State must—

(a) approve one or more certification schemes for the purposes of these Regulations,

(b) publish the name of any certification scheme which is approved, and the date from which it is approved, and

(c) where a certification scheme ceases to be approved, publish that fact together with the date on which the certification scheme ceased to be approved.

(15) For the purposes of this regulation—

(a) “approved certification scheme” means a certification scheme which is approved by the Secretary of State in accordance with paragraph (14)(a),

(b) “certification scheme” means a scheme for the purpose of certifying biomethane supply,

(i) injected in that scheme year, and

(ii) the supply of which is certified under an approved certification scheme,

(d) “company” includes any body corporate,

(e) “gas supply data”, in relation to a licensed gas supplier, means the volume of gas supplied by them on any given day,

(f) “responsible officer”, in relation to a licensed gas supplier, means a person who is—

(i) a director of the licensed gas supplier within the meaning of section 250 of the Companies Act 2006³¹, or

(ii) where there is no person falling within paragraph (i) in relation to the licensed gas supplier, a person exercising management control in relation to the licensed gas supplier.

Calculation and publication of the levy rate

39

(1) The Secretary of State must calculate the levy rate for each scheme year, expressed in pence per meter point per day (“the levy rate”), as follows—

where—

(a) A is the adjustment factor, as determined by the Secretary of State, used to predict the likely change in the number of meter points over the next scheme year,

(b) D is the number of days in that scheme year,

where—

(i) SBy is the projected scheme expenditure for that scheme year, as determined by the Secretary of State,

(ii) AAy is the Authority’s forecasted administrative costs for that scheme year,

(iii) TYy-2 is the difference between the forecasted year end surplus and the actual year end surplus for the scheme year before the previous scheme year (“Y-2”) but excluding any year end deficit for Y-2 (“the true-up”),

(iv) TDy-2 is any year end deficit for Y-2,

(v) QLy+1 is the quarterly lag uplift in relation to the following scheme year (“Y+1”), being 25% of the difference between the projected scheme expenditure for Y+1 and the previous scheme year,

(vi) Hy is the headroom figure for that scheme year, published in accordance with paragraph (4)(g),

(vii) Iy-2 is the sum of interest—

(aa) accrued on money held in the bank account referred to in regulation 40(5),

(bb) paid in accordance with regulation 54(1)(a)(i), (ii) or (iii),

(cc) payable in any scheme year in accordance with regulation 54(1)(a)(i), (ii) or (iii) and recovered by the Authority under regulation 58(g),

in Y-2,

(viii) SDy-1 is the forecasted year end surplus from the previous scheme year, and if no surplus is forecasted, the value for SDy-1 is 0 (zero),

(ix) the variables in paragraphs (i) to (viii) are expressed in pence,

(x) in the calculation for the first scheme year, the value for QLy+1 is 0 (zero),

(xi) in the calculation for the first scheme year, and the calculation for the scheme year beginning with 1st April 2022, the value for each of TYy-2, TDy-2, and SDy-1, is 0 (zero),

(xii) in the calculation for the first scheme year, the value for SBy is the projected scheme expenditure in relation to relevant producers (within the meaning given in regulation 17) for both the first scheme year and the first quarter of the scheme year beginning with 1st April 2022,

(xiii) “year end surplus” and “year end deficit” mean the amount by which the sum of all amounts received by the Authority under this Part and Parts 9 and 10 excluding—

(aa) amounts received under regulation 42 (levy credit payments),

(bb) interest accrued on money held in the bank account referred to in regulation 42(4) (interest on levy credit payments),

(cc) amounts received under regulation 57 (penalty notices),

(dd) amounts recovered under regulation 58(f) (recovery of unpaid financial penalties as a civil debt), and

(ee) in the case of a forecast year end surplus or year end deficit, interest accrued on money held in the bank account referred to in regulation 40(5) (interest on quarterly levy payments),

exceeds, or is exceeded by (as the case may be), the sum of all amounts expended by the Authority under these Regulations in relation to that scheme year,

provided that LS may not exceed the maximum levy amount for that scheme year determined and published under paragraph (6),

(d) M—

(i) in relation to the first scheme year, is the total number of meter points in the market on 31st May 2021,

(ii) in relation to the scheme year beginning with 1st April 2022, is the total number of meter points in the market on 31st May 2021, but excluding any meter points served by a scheme supplier where the Secretary of State determines it is likely that at least 95% of the gas supplied by them in the scheme year beginning with 1st April 2022 will be certified biomethane, and

(iii) in relation to the scheme year beginning with 1st April 2023 and each subsequent scheme year, is the total number of meter points in the market on 31st July preceding the start of that scheme year or such later date as the Secretary of State may determine, but excluding any meter points served by provisionally exempt suppliers in that scheme year.

(2) The Secretary of State must publish the levy rate—

(a) for the first scheme year, by 30th November 2021,

(b) for the scheme year beginning with 1st April 2022, by 30th November 2021,

(c) for the scheme year beginning with 1st April 2023 and each subsequent scheme year, by 31st December in the preceding scheme year.

(3) The Secretary of State may review the levy rate—

(a) for the first scheme year, and

(b) for the scheme year beginning with 1st April 2022,

and, may, as a result of such a review, increase or decrease the levy rate provided that such increase or decrease must be published by the Secretary of State by 1st March 2022.

(4) Subject to paragraph (5), the Secretary of State must publish the following, in relation to the first scheme year and the scheme year beginning with 1st April 2022, by 30th November 2021, and in relation to the scheme year beginning with 1st April 2023 and each subsequent scheme year, by 31st December in the preceding scheme year—

(a) the adjustment factor referred to in paragraph (1)(a),

(b) the projected scheme expenditure referred to in paragraph (1)(c)(i),

(d) the Authority’s forecasted administrative costs, including its estimated administrative costs of carrying out a mutualisation process,

(e) the true-up for the scheme year before the previous scheme year (“Y-2”), including any year end deficit for Y-2,

(f) the quarterly lag uplift, being 25% of the difference between the projected scheme expenditure for that scheme year and the previous scheme year,

(g) the amount which the Secretary of State determines is necessary to mitigate against uncertainties or unexpected events that would result in the funds available to the Authority for the purposes of the Scheme for that scheme year being less than the amount required by the Authority to make periodic support payments in relation to that scheme year (“the headroom figure”),

and where any value so published is increased or decreased as a result of a review carried out in accordance with paragraph (3), must publish the revised value by 1st March 2022.

(5) The value of the following is 0 (zero)—

(a) the forecasted year end surplus from the previous scheme year, in relation to the first scheme year, and the scheme year beginning with 1st April 2022, and

(b) the true-up for the scheme year before the previous scheme year, in relation to the first scheme year, and the scheme years beginning with 1st April 2022 and 2023.

(6) The Secretary of State—

(a) must, before 30th November 2021, determine and publish the maximum amount that can be collected under this Part in any one scheme year (“the maximum levy amount”), expressed in pounds (£) and calculated as follows—

where—

(i) SB is the projected scheme expenditure for the scheme year beginning with 1st April 2028,

(ii) AA is the Authority’s forecasted administrative costs for that scheme year,

(iii) H is the forecasted headroom figure for that scheme year,

(iv) QLy+1 is the quarterly lag uplift, within the meaning given in paragraph (4)(f), in relation to the scheme year beginning with 1st April 2029,

(b) may review the maximum levy amount at any time,

(c) may, as a result of such a review, increase or decrease the maximum levy amount, provided that such increase or decrease—

(i) may only take effect at the start of a scheme year, and

(ii) must be published by the Secretary of State as soon as reasonably practicable.

(6A) Where the Secretary of State reviews the maximum levy amount in accordance with paragraph (6)(b), the Secretary of State must calculate the new maximum levy amount in accordance with the formula set out in paragraph (6)(a) subject to the following modifications—

(a) SB is the projected scheme expenditure for the scheme year with the largest projected scheme expenditure,

(b) QLy+1 is the quarterly lag uplift, within the meaning given in paragraph (4)(f), in relation to the scheme year following that scheme year.

(7) The Authority must provide to the Secretary of State, in such manner and form and by such date as the Secretary of State may request, such information as the Authority may hold and the Secretary of State may require for the purpose of calculating the levy rate and the maximum levy amount in accordance with this regulation.

(8) In this regulation references to the Authority’s administrative costs are references to the costs incurred by the Authority in connection with the performance of its functions under these Regulations.

CHAPTER 2 — Quarterly levy payments and levy credit payments

Calculation and notification of quarterly levy payments

40

(1) The Authority must calculate the quarterly levy payment payable by a scheme supplier (the “quarterly levy payment”), in relation to each quarter of the scheme year beginning with 1st April 2022 and subsequent scheme years, as follows—

where—

(a) LR is the levy rate for the scheme year in which the previous quarter fell,

(b) M—

(i) in relation to the quarter beginning with 1st April 2022, is the sum of the meter point data for that scheme supplier for each day of the period beginning with 30th November 2021 and ending with 31st March 2022, as notified or determined under regulation 48,

(ii) in relation to the quarter beginning with 1st July 2022 and subsequent quarters, is the sum of the meter point data for that scheme supplier for each day of the previous quarter, as notified or determined under regulation 48.

(2) The Authority must notify a scheme supplier, by the relevant dates specified in the scheme schedule, of the quarterly levy payments payable by that supplier.

(3) The notification referred to in paragraph (2) must—

(a) specify—

(i) the amount of the quarterly levy payment payable by the supplier,

(ii) the date by which the amount must be paid, being a date not less than 14 days after the date of the notification, and

(iii) details of how the payment must be made, and

(b) include information about the matters mentioned in—

(i) regulation 54 (interest on late payments), and

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

(4) A scheme supplier must pay quarterly levy payments to the Authority in accordance with any notification referred to in paragraph (2).

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

Calculation of credit cover requirement

41

(1) Subject to paragraph (2), the Authority must calculate the credit cover requirement in relation to a scheme supplier, for each quarter of the scheme year beginning with 1st April 2022 and subsequent scheme years, as follows—

where—

(a) LR is the levy rate for the scheme year in which the previous quarter fell,

(b) M—

(i) in relation to the quarter beginning with 1st April 2022, is the sum of the meter point data for that supplier for each day of the period beginning with 31st August 2021 and ending with 31st December 2021, as notified or determined under regulation 48,

(ii) in relation to the quarter beginning with 1st July 2022 and subsequent quarters, is the sum of the meter point data for that supplier for each day of the quarter beginning six months before the start of that quarter, as notified or determined under regulation 48.

(2) Where a licensed gas supplier becomes a scheme supplier on or after 1st April 2022—

(a) the Authority is not required to calculate the credit cover requirement in relation to that supplier for the quarter in which they become a scheme supplier (“the first quarter”), and

(b) the Authority must calculate the credit cover requirement in relation to that supplier, for the quarter (the “second quarter”) following the first quarter and the quarter (the “third quarter”) following the second quarter, in accordance with paragraph (1) but with the modification that “M” is calculated as follows—

where—

(i) AM is the sum of the meter point data for that supplier which is available for the first quarter,

(ii) DQ is—

(aa) in respect of the credit cover requirement for the second quarter, the number of days remaining in the first quarter from and including the date on which the supplier becomes a scheme supplier; or

(bb) in respect of the credit cover requirement for the third quarter, the number of days in the first quarter.

(iii) DA is the number of days in the first quarter for which meter point data for that supplier is available.

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) or paragraph (3A) 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.

(3A) The Authority must give a scheme supplier a new notification under paragraph (1) with an updated deficit amount where—

(a) the Authority has previously given a notification to the supplier under paragraph (1) notifying them of their credit cover requirement for a quarter,

(b) before the start of that quarter the supplier’s 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, and

(i) the deficit amount specified in the notification is no longer sufficient to ensure that the supplier’s credit cover for that quarter covers their credit cover requirement, or

(ii) the notification does not specify a deficit amount but the supplier’s existing credit cover is no longer sufficient to cover 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 and the excess amount would not be a de minimis amount if payable under regulation 45(2)(a), include information about the matters mentioned in regulation 45 (repayment of levy credit payments).

(5A) Paragraph (5) does not apply where regulation 43A(2)(b) applies in relation to a scheme supplier’s credit cover requirement and any excess amount would be a de minimis amount if payable under regulation 45(2)(a).

(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.

Letters of credit

43

(1) A scheme supplier may provide an acceptable letter of credit in respect of all or part of their credit cover requirement.

(2) Where a scheme supplier—

(a) provides an acceptable letter of credit by the date specified in the notice referred to in regulation 42(1), or

(b) provides an acceptable letter of credit in the circumstances described in regulation 42(3)(b) or (c),

the amount the scheme supplier must pay to the Authority in relation to their credit cover requirement under regulation 42(3)(a), (b) or (c) (as applicable) is reduced by the amount specified in the letter of credit whilst it constitutes an acceptable letter of credit.

(3) A letter of credit is acceptable where it is—

(a) issued by a person who holds a required credit rating,

(b) valid for at least the quarter to which it relates and the four weeks immediately following the end of that quarter,

(d) issued in such form as the Authority may specify.

(4) Where a scheme supplier has provided the Authority with a letter of credit issued by a person who ceases to hold a required credit rating, that letter of credit ceases to constitute an acceptable letter of credit from the 14th day after the day on which that person ceases to hold that rating.

(5) Subject to paragraph (7), a person holds a required credit rating if that person has been assessed by—

(a) Fitch Ratings as having a short term debt rating of “F1” or better,

(b) Moody’s as having—

(i) a short term debt rating of “P-1”, or

(ii) a long term debt rating of “A3” or better, or

(6) For the purposes of paragraph (5)—

(a) “Fitch Ratings” means Fitch Ratings Limited (registered company number 01316230),

(b) “Moody’s” means the corporation known as Moody’s Investors Service Inc. incorporated in the US State of Delaware with the file number 0577904,

(c) “Standard and Poor’s” means the corporation known as Standard & Poor’s Financial Services LLC. incorporated in the US State of Delaware with the file number 4621989.

(7) The Authority may at any time give a notice to scheme suppliers specifying such alternative required credit rating as it considers appropriate, and that notice remains in force until such time as it is withdrawn by the Authority.

CHAPTER 3 — Payments to scheme suppliers

Distribution of interest on levy credit payments

44

(1) Subject to paragraph (2), in March of each scheme year beginning with March 2023, the Authority must pay to a scheme supplier any interest that has accrued on levy credit payments paid by them whilst in the bank account referred to in regulation 42(4).

(2) The Authority is not required to pay to a scheme supplier all or part of the interest described in paragraph (1) unless it is satisfied that the scheme supplier is not in breach of—

(a) regulation 40 (requirement to pay quarterly levy payments),

(b) regulation 42 (requirement to pay levy credit payments),

(d) regulation 56 (requirement to make mutualisation payments).

Repayment of levy credit payments

45

(1) This regulation applies where a scheme supplier receives a notification referred to in regulation 42(5) (that the supplier’s credit cover requirement is less than their existing credit cover).

(2) Subject to paragraphs (3) and (4)—

(a) where the notification is given in March of a scheme year the Authority must, by the relevant date specified in the scheme schedule, repay the excess amount to the supplier,

(b) where the notification is given in June, September, or December of a scheme year—

(i) the supplier may, by the relevant date specified in the scheme schedule, request repayment from the Authority of all or part of the excess amount, and

(ii) the Authority may, by the relevant date specified in the scheme schedule, repay the amount requested to the supplier.

(3) The Authority may not repay—

(a) all or part of the excess amount unless it is satisfied that the scheme supplier is not in breach of—

(i) regulation 40 (requirement to pay quarterly levy payments),

(ii) regulation 42 (requirement to pay levy credit payments),

(iii) regulation 49 (requirement to pay backdated levy payments),

(iv) regulation 56 (requirement to make mutualisation payments),

(b) an amount which, if repaid, will result in the scheme supplier’s existing credit cover being less than their credit cover requirement.

(4) The Authority may, instead of repaying the excess amount, repay such lesser amount as the Authority may determine is the amount by which the scheme supplier’s existing credit cover exceeds the scheme supplier’s credit cover requirement on the date that the repayment is made.

(5) In this regulation “the excess amount” has the meaning given in regulation 42(5)(a).

PART 8 — Additional obligations on scheme suppliers

Additional scheme supplier obligations: general

46

A scheme supplier must—

(a) notify the Authority if any of the information provided to the Authority, and on which the scheme supplier’s quarterly levy payment was calculated, was incorrect or ceases to be correct,

(b) where they have provided a letter of credit in accordance with regulation 43, monitor the validity of the issuing person’s credit rating and notify the Authority as soon as reasonably practicable if the issuing person ceases to hold the required credit rating (within the meaning given in regulation 43(5)),

(c) comply with such other requirements as the Authority may specify in relation to the effective administration of the Scheme.

Additional scheme supplier obligations: the provision of information

47

(1) A scheme supplier must provide to the Authority on request any information which the scheme supplier holds and which the Authority requires in order to discharge its functions under, or monitor compliance with, these Regulations.

(2) Information requested under paragraph (1) must be provided within such time as the Authority specifies.

Additional scheme supplier obligations: daily meter point data

48

(1) A scheme supplier must notify the Authority of their meter point data for each day of the period beginning with 31st August 2021 and ending with 31st March 2022, and the sum of their meter point data—

(a) for the period beginning with 30th November 2021 and ending with 31st March 2022, and

(b) for the period beginning with 31st August 2021 and ending with 31st December 2021,

at such time as the Authority may request.

(2) Where a licensed gas supplier becomes a scheme supplier after 30th November 2021, they must notify the Authority of their meter point data for each day of the period of three months preceding the quarter in which they became a scheme supplier, and the sum of the meter point data for that period, at such time as the Authority may request.

(3) A scheme supplier must notify the Authority, in relation to each quarter of the scheme year beginning with 1st April 2022 and each subsequent scheme year, of their meter point data for each day of that quarter, and the sum of the meter point data for that period, by no later than the relevant date specified in the scheme schedule.

(4) Where the Authority does not make a request described in paragraph (1) or (2), or does not specify a relevant date in the scheme schedule for the purposes of paragraph (3)—

(a) it may instead notify a scheme supplier of their assumed meter point data for such period as the Authority may determine, and

(b) that scheme supplier must notify the Authority whether that data is correct, by such time as the Authority may request.

(5) If a scheme supplier does not provide any notification required under paragraph (1), (2), (3) or (4)(b), the Authority must determine the number of meter points served by that supplier on each day of the relevant period.

(6) A scheme supplier must provide the Authority with any information the Authority requires to enable it to verify the supplier’s meter point data.

PART 9 — Changes affecting scheme suppliers

Former provisionally exempt suppliers

49

(1) This regulation applies where a scheme supplier (“SS”) was a provisionally exempt supplier in relation to a scheme year, and was notified in accordance with regulation 38(10)(b) or (11) that they are not an exempt supplier in relation to that scheme year.

(2) The Authority must, within 30 days after the day on which the notification in accordance with regulation 38(10)(b) or (11) is given, calculate and notify SS of the amount of levy payment (“backdated levy payment”) SS must make in relation to that scheme year, the date by which that payment must be made, and details of how that payment must be made.

(3) The backdated levy payment must be calculated by the Authority as follows—

where—

(a) BP is the backdated levy payment,

(b) Me is the sum of SS’s meter point data for each day of that scheme year,

(d) Pm is the sum of any amounts SS would have been required to contribute in any mutualisation processes carried out in accordance with regulation 56 in that scheme year, had they not been a provisionally exempt scheme supplier,

(e) RPm is the sum of any amounts SS would have been paid under regulation 56(10) as a result of a late payment by a defaulting scheme supplier in any mutualisation process carried out in accordance with regulation 56 in that scheme year, had they not been a provisionally exempt scheme supplier, calculated as follows—

where—

(i) PSU is the mutualisation amount which SS would have been required to pay in respect of the relevant default,

(ii) PAU is the total amount of mutualisation payments which were required to be paid by all non-defaulting scheme suppliers in respect of the relevant default,

(iii) PAR is the total amount, including any interest payment, recovered from the defaulting scheme supplier in relation to the relevant default.

(4) For the purposes of paragraph (3), the amount SS would have been required to contribute in any single mutualisation process is calculated as follows—

where—

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