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The Nuclear Regulated Asset Base Model (Revenue Collection) Regulations 2023

Type Statutory-Instrument

Publication 2023-03-02

Last updated 2024-10-01

State In force

Department King's Printer of Acts of Parliament

Source legislation.gov.uk

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(1) Where the revenue collection counterparty receives a notice under regulation 26(1) (“a dispute notice”) about a determination (or a failure to make a determination) under any provision of these Regulations (“a relevant provision”) it must, by the 28th day after the day on which it receives that notice either—

(a) reject the notice; or

(b) accept the notice (in full or in part) and make such determination under that provision as it thinks is necessary in consequence.

(2) Whether the revenue collection counterparty rejects or accepts a dispute notice, it must, on the same day, issue a notice (“a decision notice”) to the person who gave that dispute notice, setting out its decision and the reasons for it.

(3) Where the revenue collection counterparty makes a determination under a relevant provision by virtue of paragraph (1)(b) it must, on the same day, issue to each electricity supplier who may be affected by the making of that determination a notice which sets out that determination.

(4) Where the revenue collection counterparty makes a determination under a relevant provision by virtue of paragraph (1)(b) and—

(a) that provision requires the determination to be made by a particular time which has passed, that determination has effect notwithstanding that requirement;

(b) that provision requires something to be done by it by a particular time which has passed, that thing must be done as soon as reasonably practicable after the determination.

(5) Where the revenue collection counterparty makes a determination under a relevant provision by virtue of paragraph (1)(b) and that provision requires an electricity supplier to make a payment, that payment must be made (notwithstanding what that provision says about the time by which a payment must be made) by the date specified by the revenue collection counterparty in the notice issued under paragraph (3) to that supplier, that date being no earlier than—

(a) the date by which, in the opinion of the revenue collection counterparty, it would be reasonably practicable for that electricity supplier to make that payment; or

(b) the earliest date by which that supplier would have had to have made that payment if the determination had been made at the time the determination which is the subject of the dispute notice was or (in the case where the revenue collection counterparty failed to make a determination) should have been made.

(6) Where an electricity supplier has paid an amount to the revenue collection counterparty, or the revenue collection counterparty has paid an amount to that electricity supplier, and a determination made under a relevant provision by virtue of paragraph (1)(b) means that that amount should not have been paid, that amount must be returned to the person who paid it by—

(a) the 5th working day after the day on which the notice issued in respect of that determination was issued under paragraph (3);

(b) where the revenue collection counterparty is of the opinion that it would not be reasonably practicable for that amount to be returned by that date, such later date as the revenue collection counterparty specifies in the notice issued under paragraph (3) to that supplier in respect of that determination.

Duties of the revenue collection counterparty to enforce and notify

28

(1) The revenue collection counterparty must exercise its functions in the manner best calculated to ensure the collection of all amounts which are required to be paid or provided by electricity suppliers under these Regulations.

(2) If the revenue collection counterparty considers it may be, or become, unable to fulfil its functions, it must promptly notify the Secretary of State and must provide such further details as the Secretary of State may request.

(3) In paragraphs (1) and (2) “functions” includes—

(a) any function conferred by these Regulations;

(b) the recovery of any sum as a civil debt by virtue of section 19 of the Act; and

(4) The revenue collection counterparty must take such steps as it considers necessary to ensure that electricity suppliers are—

(a) informed of their liabilities under these Regulations; and

(b) provided with information about liabilities which they may incur under these Regulations.

(5) Where the revenue collection counterparty writes-off any debt owed to it by an electricity supplier, it must issue a notice of that fact to every electricity supplier who was required to make a payment under regulation 17(6) in relation to that debt.

(6) The revenue collection counterparty must publish information which relates to its estimates of the liabilities of electricity suppliers arising during three consecutive quarterly obligation periods (“the projection period”).

(7) The revenue collection counterparty must publish information under paragraph (6)—

(a) no later than 30 days before the start of the first quarterly obligation period to which that information relates; or

(b) where the revenue collection counterparty reasonably believes that it has received insufficient information from the Authority for the purpose of publishing information under paragraph (6), as soon as reasonably practicable following the receipt of the information the revenue collection counterparty requires.

(8) The information published under paragraph (6) must include—

(a) an estimate of the interim levy rate (see regulation 5(1)) that would apply to each quarterly obligation period during the projection period; and

(b) an estimate of the total reserve amount for each quarterly obligation period during the projection period.

Notices and publications

29

(1) Where the revenue collection counterparty is permitted or required to issue a notice (including a copy of a notice) to a person, that notice must be in writing and is issued if it has been sent (by or on behalf of the revenue collection counterparty) by post or electronic means to that person’s proper address.

(2) In paragraph (1), “proper address” means—

(a) in the case of a body corporate—

(i) the registered or principal office of that person, or

(ii) an email address provided (and not withdrawn) by that person;

(b) in the case of a partnership—

(i) the principal office of the partnership, or

(ii) an email address provided (and not withdrawn) by—

(aa) that partnership,

(bb) a partner, or

(cc) a person having control or management of the partnership business;

(c) in the case of any other person, that person’s last known address, which includes an email address (where that email address was provided, and has not been withdrawn, by that person).

(3) So as to enable the revenue collection counterparty to discharge its functions under these Regulations, an electricity supplier must, within 2 working days of first making an electricity supply after the first payment period start date, provide an email address to the revenue collection counterparty at which it can be contacted, and if that supplier subsequently changes that email address it must notify the revenue collection counterparty of that change.

(4) Where the revenue collection counterparty issues a notice to an electricity supplier under regulation 5(3)(a) or (b) it must set out an address and an email address for correspondence in that notice.

(5) An electricity supplier may give a notice to the revenue collection counterparty by sending it by post or electronic means to the address or email address contained in the most recent notice issued to that supplier under regulation 5(3)(a) or (b).

(6) Where the revenue collection counterparty is required to publish any information under these Regulations the revenue collection counterparty must publish that information in such manner as the revenue collection counterparty considers appropriate for the purpose of bringing it to the attention of persons who may be affected by that information.

CHAPTER 2 — Effect of payment and interest

Set-off of payments by the revenue collection counterparty

30

(1) This regulation applies where—

(a) the revenue collection counterparty is liable to make a payment (“a relevant payment”) to an electricity supplier under these Regulations by a date (“the relevant date”);

(b) that supplier is liable to pay determined payments; and

(c) the revenue collection counterparty considers that there is a high degree of likelihood that the electricity supplier will fail to pay a determined payment.

(2) Where this regulation applies the revenue collection counterparty may retain all or part of the relevant payment, subject to paragraph (3).

(3) The maximum amount the revenue collection counterparty may retain under paragraph (2) is the amount equal to the sum of all determined payments which the supplier is liable to pay at the relevant date.

(4) Where the revenue collection counterparty retains all or part of a relevant payment, the amount retained is to be treated as if it was a payment made to it by the supplier on the relevant date.

(5) Where the revenue collection counterparty has retained all or part of a relevant payment under paragraph (2), it must, by the relevant date, issue a notice to the supplier stating the amount which has been retained.

(6) For the purposes of paragraph (1), a determined payment is a payment—

(a) which a supplier must make to the revenue collection counterparty by virtue of these Regulations within 5 working days of the relevant date;

(b) which the supplier has not yet made; and

(7) The amount of a payment which a supplier must make by virtue of these Regulations has been determined if—

(a) in the case of a payment which is calculated by reference to an amount of electricity determined by the BSCCo on the basis of a BSC volume allocation run, the BSCCo has carried out that BSC volume allocation run;

(b) in the case of a payment where the amount of that payment must be determined by the revenue collection counterparty in accordance with these Regulations, the revenue collection counterparty has determined the amount of that payment;

(8) For the purposes of this regulation, a requirement to provide collateral under regulation 19(2) is not a requirement to make a payment by virtue of these Regulations.

Netting of payments by the revenue collection counterparty

31

(1) This regulation applies where—

(a) the revenue collection counterparty must pay an amount to an electricity supplier under these Regulations by a certain date (the “counterparty payment”); and

(b) that supplier must pay an amount to the revenue collection counterparty by the same date (the “supplier payment”).

(2) Where the counterparty payment is more than the supplier payment, payment of the counterparty payment less the supplier payment discharges—

(a) the revenue collection counterparty’s obligation to make the counterparty payment, and

(b) the supplier’s obligation to make the supplier payment.

(3) Where the counterparty payment is less than the supplier payment, payment of the supplier payment less the counterparty payment discharges—

(a) the supplier’s obligation to make the supplier payment, and

(b) the revenue collection counterparty’s obligation to make the counterparty payment.

(4) Where the counterparty payment is equal to the supplier payment—

(a) the revenue collection counterparty’s obligation to make the counterparty payment is discharged, and

(b) the supplier’s obligation to make the supplier payment is discharged.

Discharge of obligations by payment

32

(1) This regulation applies where an electricity supplier makes a payment to the revenue collection counterparty for the purpose of discharging its relevant obligations but that payment is insufficient to do so.

(2) The revenue collection counterparty must use the payment—

(a) first, to discharge (in whole or in part) any relevant obligation of the supplier arising under regulation 23(1);

(b) where part of the payment remains, secondly, to discharge any relevant obligation of the supplier which is not one arising under regulation 23(1); and

(c) where part of the payment still remains, thirdly, to discharge any relevant obligation of the supplier to make a payment of interest.

(3) Where more than one relevant obligation falls within a subparagraph of paragraph (2), the revenue collection counterparty must determine the order in which those obligations are to be discharged.

(4) On the day on which the revenue collection counterparty uses the payment it must issue a notice to the supplier which sets out the details of—

(a) any relevant obligation which has been wholly discharged;

(b) any relevant obligation which has been partially discharged, and the extent to which it has been discharged; and

(5) For the purposes of this regulation—

(a) any amount treated as a payment by an electricity supplier to the revenue collection counterparty by virtue of regulation 21(4) or (5) or regulation 30(4) is to be treated as a payment made by that supplier to the revenue collection counterparty for the purpose of discharging its relevant obligations; and

(b) a requirement to provide collateral under regulation 19(2) is not a requirement to make a payment by virtue of these Regulations.

(6) In this regulation—

“payment of interest” means a payment of interest which is required to be made by virtue of regulation 7(6), 8(7), 10(2), 13(7), 16(5), 17(7) or 23(6);

“relevant obligation”, in relation to an electricity supplier, means any obligation of that supplier to make a payment under these Regulations where the date by which that payment should have been made has passed.

Use of payments

33

(1) Where the revenue collection counterparty receives a payment from an electricity supplier under regulation 23, the revenue collection counterparty may only use that payment for the purposes of meeting its costs.

(2) Where the revenue collection counterparty receives a payment from an electricity supplier under any regulation, other than regulation 23, the revenue collection counterparty may only use that payment for the purposes of—

(a) making revenue collection counterparty payments;

(b) making any repayments due to the Secretary of State in relation to any SoS funds which the revenue collection counterparty must repay to the Secretary of State at such time and in such amount as agreed between the Secretary of State and the revenue collection counterparty; or

(3) In paragraph (1),“costs” means any costs incurred by the revenue collection counterparty in connection with the performance by it of any function conferred on it by or by virtue of Part 2 of the Act.

Apportioning sums to revenue collection contracts

34

(1) This regulation applies where the revenue collection counterparty is unable fully to meet its liabilities under, or pursuant to, a revenue collection contract.

(2) The revenue collection counterparty is unable fully to meet its liabilities under, or pursuant to, a revenue collection contract when the total amount held by the revenue collection counterparty at any time is less than the total amount of revenue collection counterparty payments it must pay at that time.

(3) Where this regulation applies, the amount which may be used to make revenue collection counterparty payments in relation to a particular revenue collection contract is the amount given by—

$$AH×OGOA$ where— AH is the total amount held by the revenue collection counterparty; OG is the amount of revenue collection counterparty payments owed in relation to that revenue collection contract; and OA is the total amount of revenue collection counterparty payments which the revenue collection counterparty owes.$

(4) An amount is held by the revenue collection counterparty if it is in possession of that amount and—

(a) it is an amount paid to it by electricity suppliers under these Regulations, other than an amount paid under or by virtue of regulation 23(1) or (6), or provided under regulation 19(2);

(b) it is an amount treated as a payment by an electricity supplier to the revenue collection counterparty by virtue of regulation 21(4) or (5) or regulation 30(3);

(c) it is an amount of collateral which was provided in the form of cash and the revenue collection counterparty is entitled to call that collateral by virtue of regulation 21;

(d) it is an amount received as a RCC party payment by the revenue collection counterparty; or

(e) it is any other amount provided to the revenue collection counterparty for the purpose of making revenue collection counterparty payments.

Application of apportionment to revenue collection contracts

35

(1) This regulation applies where a revenue collection contract contains a term that makes reference to amounts allocated pursuant to these Regulations (however that revenue collection contract describes these Regulations).

(2) Where both this regulation and regulation 34 apply, the amount allocated to that revenue collection contract, for the purposes of that term, is the amount calculated under regulation 34(3) which may be used by the revenue collection counterparty to make revenue collection counterparty payments in relation to that revenue collection contract.

(3) In all other cases where this regulation applies, the amount allocated to a revenue collection contract, for the purposes of that term, is the amount which is owed by the revenue collection counterparty in relation to that revenue collection contract.

Interest

36

(1) For the purposes of regulations 7(6), 8(7), 10(2), 13(7), 16(5), 17(7) and 23(6), the rate of interest is 5 per cent per annum over the relevant Bank of England base rate.

(2) The relevant Bank of England base rate—

(a) in respect of interest which starts to run on or after 1st January and before 1st July in any year, is the Bank of England base rate in force on 31st December in the previous year; and

(b) in respect of interest which starts to run on or after 1st July in any year, is the Bank of England base rate in force on 30th June in that year.

(3) Any requirement to pay interest by virtue of these Regulations is a requirement to pay the amount of that interest by the first working day after the day on which that interest has accrued.

(4) In this regulation, “Bank of England base rate” means—

(a) the rate announced from time to time by the Monetary Policy Committee of the Bank of England as the official dealing rate, being the rate at which the Bank is willing to enter into transactions for providing short term liquidity in the money markets; or

(b) where an order under section 19 of the Bank of England Act 1998[^f00008] is in force, any equivalent rate determined by the Treasury under that section.

PART 5 — Directions to offer to contract

Directions under section 18 of the Act

37

(1) A direction given by the Secretary of State to a revenue collection counterparty under section 18(1) of the Act must—

(a) be in writing and dated;

(b) specify the full contract terms on which the revenue collection counterparty is to offer to contract, in the form of a draft revenue collection contract;

(c) prohibit the revenue collection counterparty from modifying those terms when offering to contract with a designated nuclear company unless the revenue collection counterparty has received the prior written consent of the Secretary of State to the modification;

(d) specify a date by which the revenue collection counterparty must comply with the direction;

(e) specify the period for which the revenue collection counterparty must keep the offer open for acceptance (following the expiry of which the offer lapses).

(2) In paragraph (1)(c), “modifying” includes making additions, omissions, amendments or substitutions.

(3) The Secretary of State must give a copy of the direction to the designated nuclear company specified in the direction (“the specified person”) as soon as reasonably practicable after the direction has been given to the revenue collection counterparty.

Form and content of specified terms

38

For the purposes of regulation 37(1)(b) the terms must include terms that set out—

(a) the circumstances in which the revenue collection counterparty must make payments to the specified person;

(b) any circumstances in which the revenue collection counterparty is not required to make payments to the specified person;

(d) any circumstances in which the specified person is not required to make payments to the revenue collection counterparty;

(e) where the specified person’s relevant licence requires that payments under paragraph (a) or (c) are to be calculated in accordance with amounts notified to the revenue collection counterparty by the Authority, that payments must be calculated in accordance with that requirement;

(f) where the specified person’s relevant licence requires that payments are not required to be paid by the revenue collection counterparty to the specified person (or vice versa), that the circumstances set out under paragraph (b) or (d) must be in accordance with that requirement;

(g) the periods within which amounts payable by virtue of paragraph (a) or (c) must be paid;

(h) the circumstances in which the specified person is required to receive the consent of the revenue collection counterparty before transferring the contract or assigning its rights or obligations under the contract;

(i) a mechanism for the sharing of information between the parties to the contract; and

(j) details of any information included in the terms that is confidential information for the purposes of regulation 40(3).

Revocation of directions

39

(1) The Secretary of State may by notice (“a revocation notice”) revoke a direction given under section 18(1) of the Act (“the direction”).

(2) A revocation notice must—

(a) be in writing and be dated;

(b) identify the direction to which it applies; and

(3) Where the Secretary of State gives a revocation notice under paragraph (1), the revenue collection counterparty must immediately withdraw any offer to contract that it has made in compliance with the direction.

(4) A revocation notice has no effect if it is given after the specified person has accepted an offer to contract on the specified terms made by the revenue collection counterparty in compliance with the direction.

Publication of revenue collection contracts

40

(1) If a specified person accepts an offer to contract on the specified terms, the revenue collection counterparty must publish the resulting revenue collection contract.

(2) The revenue collection counterparty must exclude any confidential information from the revenue collection contract that is published.

(3) For the purposes of paragraph (2), “confidential information” means information which—

(a) is identified in the specified terms as information to which paragraph (4) applies; and

(b) the specified terms provide must not be disclosed.

(4) This paragraph applies to information if, in the opinion of the Secretary of State at the time the relevant direction is given, it is information—

(a) which constitutes a trade secret;

(b) the disclosure of which would or would be likely to prejudice the commercial interests of any person; or

Interpretation of Part 5

41

In this Part, “specified person” is to be construed in accordance with regulation 37(3).

PART 6 — Information and advice

Requests for information

42

(1) The revenue collection counterparty may request information from an electricity supplier which the revenue collection counterparty reasonably requires in connection with the performance of the revenue collection counterparty’s functions.

(2) The revenue collection counterparty may request information from a CFD counterparty which the revenue collection counterparty reasonably requires in connection with the revenue collection counterparty’s determination of amounts of EII excluded electricity under these Regulations.

(3) The Authority may request information which they reasonably require in connection with the performance of the Authority’s functions from any of the following persons—

(a) the revenue collection counterparty;

(b) the national system operator.

(4) The Secretary of State may request information relating to revenue collection contracts which they reasonably require in connection with the performance of the Secretary of State’s functions from any of the following persons—

(a) the revenue collection counterparty;

(b) the Authority;

(d) the national system operator;

(e) an RCC party.

(5) The Secretary of State may request the Authority to provide information to the revenue collection counterparty which the Secretary of State reasonably considers the revenue collection counterparty requires in connection with the performance of the revenue collection counterparty’s functions.

(6) The information which the Secretary of State may request under paragraph (5) includes information about amounts calculated by the Authority in accordance with an RCC party’s relevant licence.

(7) The Secretary of State may request a nuclear administrator to provide information to the Authority which the Secretary of State reasonably considers the Authority requires in connection with the performance of the Authority’s functions.

(8) A person who receives a request under this regulation must comply with the request within such period as the person making the request may reasonably require.

Provision of information other than by request

43

(1) This regulation applies regardless of whether a request for information under regulation 42 has been made.

(2) Any of the following persons may provide to the revenue collection counterparty information which the person reasonably considers the revenue collection counterparty requires in connection with the performance of the revenue collection counterparty’s functions—

(a) the Authority;

(b) a CFD counterparty.

(3) The revenue collection counterparty may provide to the Authority information which the revenue collection counterparty reasonably considers the Authority requires in connection with the performance of the Authority’s functions.

(4) Any of the following persons may provide to the Secretary of State information relating to revenue collection contracts which the person reasonably considers the Secretary of State requires in connection with the performance of the Secretary of State’s functions—

(a) the revenue collection counterparty;

(b) the Authority;

Provision of advice to the Secretary of State

44

(1) The Secretary of State may request advice relating to revenue collection contracts which they reasonably require in connection with the performance of the Secretary of State’s functions from any of the following persons—

(a) the revenue collection counterparty;

(b) the Authority;

(2) A person who receives a request under paragraph (1) must comply with the request within such period as the Secretary of State may reasonably require.

Restrictions on disclosing information or advice

45

(1) Subject to paragraph (2), a person who obtains information or advice under this Part must not disclose the information or advice to another person.

(2) Paragraph (1) does not apply to the disclosure of information or advice by the person—

(a) if the disclosure is required by law (including by virtue of a request for information or advice made under this Part);

(b) if the disclosure is required to comply with an order of a court or for the purposes of any legal proceedings;

(d) if the disclosure is of information that has already lawfully been made available to the public;

(e) in the case of a disclosure by the revenue collection counterparty, if the revenue collection counterparty reasonably considers the disclosure to be necessary in connection with the performance of the revenue collection counterparty’s functions;

(f) in the case of a disclosure by the Authority, if the Authority reasonably considers the disclosure to be necessary in connection with the performance of the Authority’s functions;

(g) in the case of a disclosure by the Secretary of State, if the Secretary of State reasonably considers the disclosure to be necessary in connection with the performance of the Secretary of State’s functions.

Supplementary provision for Part 6

46

(1) A requirement imposed under this Part on the revenue collection counterparty, a CFD counterparty, the national system operator, a nuclear administrator or an RCC party is to be treated as a relevant requirement on that person as if they were a regulated person for the purposes of section 25 of the Electricity Act 1989[^f00009].

(2) A person who discloses information as a result of this Part must exercise reasonable care as to its accuracy.

(3) Nothing in this Part—

(a) authorises or requires a disclosure of information if the disclosure would contravene the data protection legislation (but in determining whether a disclosure would do so, a requirement imposed under this Part is to be taken into account);

(b) requires a person to disclose information that the person does not hold and is not entitled to obtain;

(4) In this regulation, “the data protection legislation” has the same meaning as in section 3(9) of the Data Protection Act 2018[^f00010].

Interpretation of Part 6

47

In this Part—

“Authority’s functions” means— functions conferred on the Authority by or by virtue of the Act (including by these Regulations); and the Authority’s functions relating to the regulation of any RCC party in accordance with its relevant licence;

“CFD counterparty” means the person or persons designated as a counterparty for contracts for difference in accordance with section 7 of the Energy Act 2013[^f00011];

“nuclear administrator” has the meaning given in section 39(1) of the Act;

“revenue collection counterparty’s functions” means— functions conferred on the revenue collection counterparty by or by virtue of the Act (including by these Regulations); and duties or obligations of the revenue collection counterparty arising under or by virtue of any revenue collection contract to which it is a party;

“Secretary of State’s functions” means— functions conferred on the Secretary of State by or by virtue of the Act (including by these Regulations); and the Secretary of State’s functions in relation to the formulation, development, monitoring and review of energy policy.

SCHEDULE

1

Regulation 2 has effect as if—

(a) every reference to “the revenue collection counterparty”, except the reference in the definition of “letter of credit” in paragraph (1), were to “a revenue collection counterparty”; and

(b) in paragraph (1), the words “to whom it is provided,” appeared after the words “the revenue collection counterparty” in the definition of “letter of credit”.

2

Regulation 3 has effect as if—

(a) in paragraph (1), the reference to “the revenue collection counterparty” were to “each revenue collection counterparty”;

(b) in paragraph (3), the reference to “a supplier’s RCC period contribution” were to “a supplier’s RCC period contribution in respect of a revenue collection counterparty”;

(c) in paragraph (4), the reference to “the RCC period contribution” were to “the RCC period contribution in respect of a revenue collection counterparty”; and

(d) in paragraphs (3)(b) and (4)(b), each reference to “the revenue collection counterparty” were to “that revenue collection counterparty”.

3

Regulation 4 has effect as if—

(a) in paragraph (1)—

(i) the reference to “the RCC period contribution” were to “the RCC period contribution in respect of a revenue collection counterparty”; and

(ii) each reference to “the revenue collection counterparty” were to “that revenue collection counterparty”; and

(b) in paragraph (3), the reference to “the revenue collection counterparty” were to “a revenue collection counterparty”.

4

Regulation 5 has effect as if—

(a) each reference to “the revenue collection counterparty” were a reference to “a revenue collection counterparty”; and

(b) in relation to a revenue collection counterparty designated under section 16 of the Act on or after the first payment period start date, there is no requirement for that revenue collection counterparty to determine an interim levy rate in respect of the first quarterly obligation period which commences after its designation.

5

Regulation 6 has effect as if—

(a) in paragraphs (1), (2) and (3), each reference to—

(i) “the revenue collection counterparty’s” were to “each revenue collection counterparty’s”;

(ii) “the revenue collection counterparty” were to “that revenue collection counterparty”; and

(iii) “revenue collection contracts” were to “revenue collection contracts to which that revenue collection counterparty is a party”; and

(b) in paragraph (4), the reference to “the revenue collection counterparty” were to “a revenue collection counterparty”;

6

Regulation 7 has effect as if—

(a) in paragraphs (1) and (4), each reference to “the revenue collection counterparty” were to “each revenue collection counterparty”;

(b) in paragraph (2)—

(i) the words “to a revenue collection counterparty” appeared after the words “by a supplier”; and

(ii) the words “which that revenue collection counterparty determined and” appeared after the words “interim levy rate”;

(2A) Where a revenue collection counterparty has not determined an interim levy rate which applies in relation to a day, there is no requirement to make an interim rate payment to that revenue collection counterparty in respect of that day.

(d) in paragraph (4)—

(i) the reference to “The revenue collection counterparty” were to “Each revenue collection counterparty which determines an interim rate in respect of a day in a quarterly obligation period”;

(ii) the reference to “a day in a quarterly obligation period” were to “that day”; and

(iii) the words “to that revenue collection counterparty” appeared after the words “must pay”; and

(e) in paragraphs (5) and (6), the words “to a revenue collection counterparty” appeared after the words “interim rate payment” and each reference to “the revenue collection counterparty” were to “that revenue collection counterparty”.

7

Regulation 8 has effect as if—

(a) in paragraph (1)—

(i) the words “in relation to a revenue collection counterparty” appeared after the words “regulation applies”; and

(ii) the words “in relation to that revenue collection counterparty” appeared after the words “that day” and after the words “that supplier”;

(b) in paragraphs (2) and (3)—

(i) the words “in relation to a revenue collection counterparty” appeared after the words “net levied interim rate payment”;

(ii) the references to “the revenue collection counterparty” were to “that revenue collection counterparty”;

(d) in paragraph (5)—

(i) the words “to a revenue collection counterparty” appeared after the words “make payment”; and

(ii) each reference to “the revenue collection counterparty” were to “that revenue collection counterparty”;

(e) in paragraph (6), the first reference to “the revenue collection counterparty” were to “a revenue collection counterparty” and the second reference were to “that revenue collection counterparty”;

(f) in paragraph (7)—

(i) the words “to a revenue collection counterparty” appeared after the word “make”; and

(ii) each reference to “the revenue collection counterparty” were to “that revenue collection counterparty”;

(g) in paragraph (8)—

(i) in subparagraph (a)—

(aa) the words “in relation to a revenue collection counterparty” appeared after the words “in relation to a day”; and

(bb) the words “which that revenue collection counterparty determined and” appeared after the words “interim levy rate”; and

(ii) in subparagraph (b)—

(aa) the words “in relation to a revenue collection counterparty” appeared after the words “in relation to a day”;

(bb) the words “to that revenue collection counterparty” appeared after the words “in respect of that day” in each place they appear; and

(cc) the reference to “the revenue collection counterparty” were to “that revenue collection counterparty”.

8

Regulation 9 has effect as if—

(a) every reference to “the revenue collection counterparty” were a reference to “a revenue collection counterparty”;

(b) in paragraph (1)(a), the words “by it” appeared after the words “to be collected”;

(d) in relation to a revenue collection counterparty designated under section 16 of the Act on or after the first payment period start date there is no requirement for that revenue collection counterparty to determine a total reserve amount or the amount of each supplier’s reserve payment in respect of the first quarterly obligation period which commences after its designation, and therefore no such payments are required to be made to it in respect of that period.

9

Regulation 10 has effect as if—

(a) in paragraph (1), the first reference to “the revenue collection counterparty” were to “a revenue collection counterparty” and the second reference were to “that revenue collection counterparty;

(b) in paragraph (2)—

(i) the words “to a revenue collection counterparty” appeared after the words “reserve payment”; and

(ii) the reference to “the revenue collection counterparty” were to “that revenue collection counterparty”; and

(i) the words “in relation to a revenue collection counterparty” appeared after the words “in respect of the relevant period”; and

(ii) the words “determined by that revenue collection counterparty” appeared after the words “total reserve amount for that period”.

10

Regulation 11 has effect as if every reference to “the revenue collection counterparty” were to “a revenue collection counterparty”.

11

Regulation 12 has effect as if—

(a) in paragraph (1)—

(i) the words “in relation to a revenue collection counterparty” appeared after the words “(“the rate period”)”; and

(ii) every reference to “the revenue collection counterparty” were to “that revenue collection counterparty”;

(b) in paragraph (2)—

(i) the words “by a revenue collection counterparty” appeared after the words “paragraph (1)”, and

(ii) the reference to “the revenue collection counterparty” were to “that revenue collection counterparty”;

(c) in paragraph (3), the reference to “the revenue collection counterparty” were to “a revenue collection counterparty”; and

(d) in paragraph (4)—

(i) the words “determined by a revenue collection counterparty” appeared after the words “adjusted interim levy rate”; and

(ii) each reference to “the revenue collection counterparty” were to “that revenue collection counterparty”.

12

Regulation 13 has effect as if—

(a) in paragraph (1)—

(i) the words “in relation to a revenue collection counterparty” appeared after the words “the quarterly obligation period” where those words appear for the first time; and

(ii) the reference to “the revenue collection counterparty” were to “that revenue collection counterparty”;

(b) in paragraph (2), the references to “the revenue collection counterparty’s” were to “that revenue collection counterparty’s”;

(i) the reference to “the revenue collection counterparty” were to “a revenue collection counterparty”; and

(ii) the words “to that revenue collection counterparty” appeared after the words “additional reserve payment”;

(d) in paragraph (4)—

(i) the words “in relation to a revenue collection counterparty” appeared after the words “An electricity supplier’s additional reserve payment”; and

(ii) the words “determined by that revenue collection counterparty” appeared after the words “the additional total reserve amount”;

(e) in paragraph (5), the reference to “the revenue collection counterparty” were to “a revenue collection counterparty”; and

(f) in paragraphs (6) and (7)—

(i) the words “to a revenue collection counterparty” appeared after the words “additional reserve payment”; and

(ii) each reference to “the revenue collection counterparty” were to “that revenue collection counterparty”;

13

Regulation 14 has effect as if every reference to “the revenue collection counterparty” were to “a revenue collection counterparty” except the reference in paragraph (2), and the second reference in paragraph (6), which are to “that revenue collection counterparty”.

14

Regulation 15 has effect as if—

(a) in paragraph (1), the first reference to “the revenue collection counterparty” were to “a revenue collection counterparty” and every subsequent reference were to “that revenue collection counterparty”; and

(b) in paragraph (3), the first reference to “the revenue collection counterparty” were to “a revenue collection counterparty” and the other reference to it were to “that revenue collection counterparty”.

15

Regulation 16 has effect as if—

(a) in paragraph (1)—

(i) the words “in relation to a revenue collection counterparty” appeared after the words “by a supplier” and “for that supplier”;

(ii) the reference to “the revenue collection counterparty’s” were to “that revenue collection counterparty’s”; and

(iii) the words “in respect of that revenue collection counterparty” appeared after the words “RCC period contribution”;

(b) in paragraphs (3) and (5), each reference to “the revenue collection counterparty” were to “that revenue collection counterparty”;

(c) in paragraph (3), the words “and a revenue collection counterparty” appeared after the words “an electricity supplier”;

(d) in paragraph (4), the first reference to “the revenue collection counterparty” were to “a revenue collection counterparty”;

(e) in paragraph (5), the words “to a revenue collection counterparty” appeared after the words “reconciliation payment”;

(f) in paragraph (6), the words “in relation to a revenue collection counterparty (“the relevant counterparty”)” appeared after the words “net levied amount for a supplier”; and

(g) in paragraph (7)—

(i) in the definition of “the supplier obligation amount”, the words “to the relevant counterparty” appeared after each instance of the words “to make”; and

(ii) in the definition of “the counterparty obligation amount”, each reference to “the revenue collection counterparty” were to “the relevant counterparty”.

16

Regulation 17 has effect as if—

(a) in paragraph (1), the words “to a revenue collection counterparty,” appeared after the words “make a relevant payment”;

(b) in paragraphs (1) and (2), the references to “the revenue collection counterparty” were to “that revenue collection counterparty”;

(i) the words “by a revenue collection counterparty” appeared after the words “may only be issued”; and

(ii) each reference to “the revenue collection counterparty” were to “that revenue collection counterparty”;

(d) in paragraph (6)—

(i) the reference to “the revenue collection counterparty” were a reference to “a revenue collection counterparty”; and

(ii) the words “to that revenue collection counterparty” appeared after the words “amount specified in the notice”;

(e) in paragraph (7)—

(i) the words “to a revenue collection counterparty” appeared after the words “mutualisation payment”; and

(ii) the reference in that paragraph to “the revenue collection counterparty” were a reference to “that revenue collection counterparty”.

17

Regulation 18 has effect as if the references to “the revenue collection counterparty” in that regulation were to “a revenue collection counterparty”.

18

Regulation 19 has effect as if—

(a) in paragraph (2)—

(i) the reference to “the revenue collection counterparty” were to “each revenue collection counterparty”; and

(ii) the words “in relation to that revenue collection counterparty” appeared after the words “for that day”;

(b) in paragraph (3), the words “in relation to a revenue collection counterparty” appeared before the words “is determined by”;

(c) in paragraph (4), the words “determined by that revenue collection counterparty” appeared after the words “interim levy rate”;

(d) in paragraph (6)—

(i) the first reference to “the revenue collection counterparty” were to “a revenue collection counterparty” and every other such reference were to “that revenue collection counterparty”;

(ii) the words “in relation to a revenue collection counterparty” appeared before the words “where, after”;

(iii) in subparagraphs (a) and (b), the words “in relation to that revenue collection counterparty” appeared after the words “collateral requirement”; and

(e) in paragraph (8), the first reference to “the revenue collection counterparty” were to “a revenue collection counterparty” and the subsequent reference were to “that revenue collection counterparty”.

19

Regulation 20 has effect as if—

(a) in paragraph (1)(b), the words “to which it is to be provided” appeared after the words “the revenue collection counterparty”;

(b) in paragraphs (2), (3), (5), (7) and (8), each reference to “the revenue collection counterparty” were to “a revenue collection counterparty”;

(c) in paragraph (5), the words “which apply to letters of credit which are to be provided to it” appeared after the words “alternative short term debt ratings”; and

(d) in paragraph (8), the requirement to publish a document applies to a revenue collection counterparty who was designated after the first revenue collection contract is entered into as if the reference to “before the first revenue collection contract is entered into” in that paragraph were to “as soon as reasonably practicable after that revenue collection counterparty is designated under section 16 of the Act”.

20

Regulation 21 has effect as if—

(a) in paragraphs (1), (2), (3), (4) and (5), the first reference to “the revenue collection counterparty” were to “a revenue collection counterparty” and all other references to “the revenue collection counterparty” were to “that revenue collection counterparty”; and

(b) the words “to that revenue collection counterparty” appeared—

(i) after the words “relevant payment” in paragraph (2);

(ii) before the words “is the lesser of” in paragraph (3);

(iii) after the words “collateral provided” in paragraph (3)(a); and

(iv) after the words “failed to make” in paragraph (3)(b).

21

Regulation 22 has effect as if—

(a) the first reference in paragraphs (1) and (2), and the reference in paragraph (3), to “the revenue collection counterparty” were to “a revenue collection counterparty” and every other reference to “the revenue collection counterparty” were to “that revenue collection counterparty”; and

(b) the words “in relation to that revenue collection counterparty” appeared after the words “collateral requirement” in each place those words occur.

22

Regulation 23 has effect as if every reference to “the revenue collection counterparty” were to “the first revenue collection counterparty designated under section 16 of the Act”.

23

Regulation 24 has effect as if the references in paragraphs (1), (2) and (5), and the first reference in paragraph (3), to “the revenue collection counterparty” were to “the first revenue collection counterparty designated under section 16 of the Act” and every other reference to “the revenue collection counterparty” were to “that revenue collection counterparty”.

24

Regulation 25 has effect as if—

(a) the first reference to “the revenue collection counterparty” in paragraphs (2), (3), (4) and (6) were to “a revenue collection counterparty” and every other reference in that regulation to “the revenue collection counterparty” were to “that revenue collection counterparty; and

(b) the words “to a revenue collection counterparty” appeared after the words “makes a payment” in paragraph (5).

25

Regulation 26 has effect as if the first reference to “the revenue collection counterparty” in paragraphs (1), (2) and (3)(c), and the reference to it in paragraph (3)(a) and (b), were to “a revenue collection counterparty” and every other reference in that regulation to “the revenue collection counterparty” were to “that revenue collection counterparty”.

26

Regulation 27 has effect as if—

(a) in paragraphs (5) and (6), the first reference to “the revenue collection counterparty” were to “a revenue collection counterparty” and each subsequent reference were to “that revenue collection counterparty”; and

(b) every other reference to “the revenue collection counterparty” were to “a revenue collection counterparty”.

27

Regulation 28 has effect as if—

(a) every reference in that regulation to “the revenue collection counterparty”, except the second reference in paragraph (7)(b), were a reference to “a revenue collection counterparty”;

(b) the words “to it” appeared—

(i) after the words “paid or provided” in paragraph (1); and

(ii) after the words “their liabilities” in paragraph (4)(a);

(d) in paragraph (7)(b), the second reference to “the revenue collection counterparty” were a reference to “a revenue collection counterparty”.

28

Regulation 29 has effect as if—

(a) the first reference in paragraphs (1) and (6), and the reference in paragraphs (4) and (5), to “the revenue collection counterparty” were to “a revenue collection counterparty”;

(b) in paragraph (3)—

(i) each reference to “the revenue collection counterparty” were to “each revenue collection counterparty”; and

(ii) the words “be contacted” were followed by “and where a revenue collection counterparty was not designated at the time of making that first supply that supplier must provide that email address to that revenue collection counterparty within 2 working days of its designation under section 16 of the Act”;

(c) every other reference to “the revenue collection counterparty” in that regulation were to “that revenue collection counterparty”; and

(d) in paragraph (5), the words “by that revenue collection counterparty” appeared after the words “notice issued”.

29

Regulation 30 has effect as if—

(a) the first reference in that regulation to “the revenue collection counterparty” were to “a revenue collection counterparty” and every other reference to “the revenue collection counterparty” in that regulation were to “that revenue collection counterparty”; and

(b) in paragraph (1)(b), the words “to that revenue collection counterparty” appeared after the words “liable to pay”.

30

Regulation 31 has effect as if—

(a) in paragraph (1), the first reference to “the revenue collection counterparty” were to “a revenue collection counterparty” and the second reference were to “that revenue collection counterparty”; and

(b) in paragraphs (2)(a), (3)(b) and (4)(a), each reference to “the revenue collection counterparty” were to “that revenue collection counterparty”.

31

Regulation 32 has effect as if—

(a) the reference in paragraph (1), and the first reference in paragraph (5), to “the revenue collection counterparty” were to “a revenue collection counterparty” and every other reference to “the revenue collection counterparty” in that regulation were to “that revenue collection counterparty”; and

(b) in paragraph (2), the words “owed to that revenue collection counterparty” appeared after each reference to “supplier”.

32

Regulation 33 has effect as if—

(a) in paragraph (1), the first reference to “the revenue collection counterparty” were to “the first revenue collection counterparty designated under section 16 of the Act”;

(b) in paragraph (2), the first reference to “the revenue collection counterparty” were to “a revenue collection counterparty”;

(c) in paragraph (3), the first reference to “the revenue collection counterparty” were to “the first revenue collection counterparty designated under section 16 of the Act”; and

(d) every other reference to “the revenue collection counterparty” were to “that revenue collection counterparty”.

33

Regulation 34 has effect as if—

(a) the first reference in paragraphs (1), (2) and (4), to “the revenue collection counterparty” were to “a revenue collection counterparty” and every other reference in paragraphs (2) and (4) to “the revenue collection counterparty” were to “that revenue collection counterparty”; and

(b) in paragraph (3), the words “by a revenue collection counterparty that is unable fully to meet its liabilities under, or pursuant to, a revenue collection contract” appeared after the words “which may be used”.

34

Regulation 39 has effect as if—

(a) in paragraph (2)(c), the reference to “the revenue collection counterparty” were to “the revenue collection counterparty to which the direction relates”; and

(b) in paragraphs (3) and (4), each reference to “the revenue collection counterparty” were to “the revenue collection counterparty to which the revocation notice relates”.

35

Regulation 40 has effect as if the reference to “the revenue collection counterparty” in paragraph (1) were to “the revenue collection counterparty that made the offer”.

36

Regulation 42 has effect as if—

(a) in paragraphs (1), (2) and (5)—

(i) the first reference in each paragraph to “the revenue collection counterparty” were to “a revenue collection counterparty”;

(ii) the second reference in each paragraph to “the revenue collection counterparty” were to “that revenue collection counterparty”; and

(iii) each reference to “the revenue collection counterparty’s” were to “that revenue collection counterparty’s”; and

(b) in paragraphs (3) and (4), each reference to “the revenue collection counterparty” were to “a revenue collection counterparty”.

37

Regulation 43 has effect as if—

(a) in paragraphs (2) and (3)—

(i) the first reference to “the revenue collection counterparty” were to “a revenue collection counterparty” and the other reference were to “that revenue collection counterparty”; and

(ii) the reference to “the revenue collection counterparty’s” were to “that revenue collection counterparty’s”; and

(b) in paragraph (4)(a) the reference to “the revenue collection counterparty” were to “a revenue collection counterparty”.

38

Regulations 44, 46 and 47 have effect as if each reference to “the revenue collection counterparty” were to “a revenue collection counterparty”.

39

Regulation 45(2)(e) has effect as if—

(a) the first reference to “the revenue collection counterparty” were to “a revenue collection counterparty” and the other reference were to “that revenue collection counterparty”; and

(b) the reference to “the revenue collection counterparty’s” were to “that revenue collection counterparty’s”.

Signed

Callanan — Parliamentary Under Secretary of State — Department for Energy Security and Net Zero — 2nd March 2023

Explanatory note

(This note is not part of the Regulations)

EXPLANATORY NOTE

These Regulations impose a number of obligations on persons who supply electricity in Great Britain pursuant to an electricity supply licence (granted by the Gas and Electricity Markets Authority under section 6 of the Electricity Act 1989). Those obligations principally consist of requirements to make payments to the revenue collection counterparty, a person who is designated as such under section 15 of the Nuclear Energy (Financing) Act 2022 (“the 2022 Act”). The payments are made to enable the revenue collection counterparty to meet its costs, which include the costs it incurs in meeting obligations it has under revenue collection contracts. The counterparty is also, in some circumstances, required to make payments to electricity suppliers.

Revenue collection contracts are contracts which the revenue collection counterparty must offer to enter into with a designated nuclear company by virtue of section 18 of the 2022 Act. A designated nuclear company is a company that holds an electricity generation licence in respect of a nuclear energy generation project and has been designated in relation to that project under section 2 of the 2022 Act.

Part 1 Regulation 2 contains definitions used in these Regulations. There are terms used in these Regulations which are defined in the Balancing and Settlement Code. That code is available at available at the following website: www.elexon.co.uk. A hard copy of that code may be requested from Elexon Limited (4th Floor, 350 Euston Road, London NW1 3AW). The Balancing and Settlement Code Company (the BSCCo) makes determinations under that code about the amount of electricity supplied in Great Britain, and these determinations are relied upon for various purposes in these Regulations. Every licensed electricity supplier is a party to that code.

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