The Energy Bills Discount Scheme Pass-through Requirement Regulations 2023

Type Statutory-Instrument
Publication 2023-04-24
State In force
Department King's Printer of Acts of Parliament
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Made: 24th April 2023

Laid before Parliament: 25th April 2023

Coming into force: 26th April 2023

The Secretary of State makes these Regulations in exercise of the powers conferred by sections 19 and 26(2)(a) and (b) of the Energy Prices Act 2022[^f00001].

PART 1 — Introductory

Citation, commencement and extent

1

Interpretation

2

In these Regulations—

and for the purpose of regulation 3, “relevant intermediary” includes a person who will have entitlement to have a scheme benefit provided to it but to whom it has not yet been so provided;

and the amount of the scheme benefit—

at any time during a scheme period and includes—

made available by a relevant intermediary to an end user.

PART 2 — Pass-through requirement

Pass-through requirement

3

Calculation of pass-through amount

4

a pass-through amount is just and reasonable for the purposes of regulation 3(2), if the relevant intermediary applies the same approach to calculate the pass-through amount for each end user on this basis.

Provision of information to end users

5

Effecting the pass-through

6

or a combination of the methods set out in this paragraph.

PART 3 — General

Enforcement

7

Signed

Amanda Solloway — Parliamentary Under Secretary of State — Department for Energy Security and Net Zero — 24th April 2023

Explanatory note

(This note is not part of the Regulations)

EXPLANATORY NOTE

These Regulations make provision for pass-through requirements in relation to the Energy Bills Discount Scheme (EBDS) Regulations 2023 in England, Wales and Scotland (S.I. 2023/453) and in Northern Ireland (S.I. 2023/454). Pass-through requirements are imposed on a “relevant intermediary” (as defined in regulation 2) and establish that they must pass-through the benefits of the EBDS to an “end user” (defined in section 19(3) of the Energy Prices Act 2022 (c. 44), subject to an exception for excluded end users as defined in regulation 2) to whom energy or energy products (or both) have been made available. The Regulations apply in respect of relevant intermediaries, other than a) an “intermediary” as defined in regulation 2(1) of the Energy Bills Discount Scheme Pass-through Requirement (Heat Suppliers) Regulations 2023 (S.I. 2023/455) and b) those providing certain types of hospitality accommodation (defined as “excluded persons” under these Regulations). The Regulations also deal with adjustments to pass-through amounts which may be needed if a supply redetermination event occurs under the Energy Bills Discount Scheme Regulations 2023 or the Energy Bills Discount Scheme (Northern Ireland) Regulations 2023.

Regulation 3 establishes the requirement for relevant intermediaries to pass-through a just and reasonable amount of the benefit provided under the EBDS to each of their end users.

Regulation 4 provides for the calculation of the pass-through amount and sets out the way in which relevant intermediaries are to determine what is a just and reasonable amount for the purposes of regulation 3.

Regulation 5 sets out the information which a relevant intermediary is required to provide to each of its end users about the EBDS scheme benefit provided to it, and the amount or proportion it intends to provide to the end user together with supporting details about how it has calculated that this is a just and reasonable amount. The duty to provide information is owed by a relevant intermediary to end users and enforceable in civil proceedings.

Regulation 6 makes provision about the way in which the pass-through is to be given effect including that it must be provided to the end user as soon as reasonably practicable after the scheme benefit has been provided to the relevant intermediary.

Regulation 7 provides for unpaid pass-through amounts to be recoverable from the relevant intermediary by the end user as a civil debt.

A full impact assessment of the effect the EBDS, including the related pass-through requirements, will have on the costs of business and the voluntary sector is available from the Department for Energy Security and Net Zero, 1 Victoria Street, London, SW1H 0ET and is published with the Explanatory Memorandum alongside the instrument on www.legislation.gov.uk.

Footnotes

[^f00001]: 2022 c. 44.

[^f00002]: Defined in the Energy Prices Act 2022, section 10(4).

[^f00003]: Defined in the Energy Prices Act 2022, section 10(8).

[^f00004]: Defined in the Energy Prices Act 2022, section 10(5) in relation to GB non-domestic electricity supply and s.10(9) in relation to GB non-domestic gas supply.

[^f00005]: S.I. 1992/231 (N.I. 1). Schedule 6 was substituted by Electricity Regulations (Northern Ireland) 2007 (S.R. 2007 No 321), regulation 5(2) and Schedule 1.

[^f00006]: 2011 c. (N.I.)6.

[^f00007]: S.I. 2023/453.

[^f00008]: Defined in Schedule 1, paragraph 1 to the Energy Prices Act 2022.

[^f00009]: “Energy” is defined in section 28(4) of the Energy Prices Act 2022.

[^f00010]: S.I. 2023/454.

[^f00011]: S.I. 2022/1105.

[^f00012]: 1983 c. 34. Section 5 was amended by sections 318 and 321(1) of, and Schedule 16 to the Housing and Regeneration Act 2008 (c. 17).

[^f00013]: 2011 c. 12 (N.I.).

[^f00014]: S.I. 2023/455.

[^f00015]: Published by the Office for National Statistics. For information on how to obtain a hard copy, contact the Office for National Statistics, Classifications and Harmonisation Unit, Government Buildings, Cardiff Road, Newport, South Wales, NP10 8XG. For an electronic copy, see https://www.ons.gov.uk/methodology/classificationsandstandards/ukstandardindustrialclassificationofeconomicactivities/uksic2007.

[^f00016]: Defined in section 10(2) of the Energy Prices Act 2022 for England and Wales and Scotland and section 12(2) of that Act for Northern Ireland.

[^f00017]: Defined in section 10(6) of the Energy Prices Act 2022 for England and Wales and Scotland and section 12(5) of that Act for Northern Ireland.

[^f00018]: Regulation 23(1)(a) of the EBDS Regulations and regulation 24(1)(a) of the NI EBDS Regulations define an ETII supply contract as a single supply contract in respect of all energy supplied or otherwise made available to, or used to make available heat, hot water or electricity to, certified ETII operators. A certified ETII operator is a person in respect of whom an ETII certificate has been issued under the EBDS Regulations or the NI EBDS Regulations and not revoked.

[^f00019]: Regulation 23(1)(b) of the EBDS Regulations and regulation 24(1)(b) of the NI EBDS Regulations define a QHS supply contract as a single supply contract in respect of all energy supplied or otherwise made available to, or used to make available heat, hot water or electricity to, certified heat suppliers. A certified heat supplier means a qualifying heat supplier under the EBDS Regulations or the NI EBDS Regulations in respect of whom a QHS certificate has been issued under those Regulations and not revoked.

[^f00020]: 1998 c. 11.

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