9Supplier obligationU.K.
(1)Regulations must make provision for electricity suppliers to pay a CFD counterparty for the purpose of enabling the counterparty to make payments under CFDs.
(2)Regulations may make provision for electricity suppliers to pay a CFD counterparty for the purpose of enabling the counterparty—
(a)to meet such other descriptions of its costs as the Secretary of State considers appropriate;
(b)to hold sums in reserve;
(c)to cover losses in the case of insolvency or default of an electricity supplier.
(3)In subsection (2)(a) “costs” means costs in connection with the performance of any function conferred by or by virtue of this Chapter.
(4)Regulations may make provision to require electricity suppliers to provide financial collateral to a CFD counterparty (whether in cash, securities or any other form).
(5)Regulations which make provision by virtue of subsection (1) for the payment of sums by electricity suppliers must impose on the CFD counterparty a duty in relation to the collection of such sums.
(6)Provision made by virtue of this section may include provision for—
(a)a CFD counterparty to determine the form and terms of any financial collateral;
(b)a CFD counterparty to calculate or determine, in accordance with such criteria as may be provided for by or under the regulations, amounts which are owed by an electricity supplier or are to be provided as financial collateral by an electricity supplier;
(c)the issuing of notices by a CFD counterparty to require the payment or provision of such amounts;
(d)the enforcement of obligations arising under such notices.
(7)Provision made by virtue of subsection (6)(b) may provide for anything which is to be calculated or determined under the regulations to be calculated or determined by such persons, in accordance with such procedure and by reference to such matters and to the opinion of such persons, as may be specified in the regulations.
(8)Provision made by virtue of subsection (6)(d) may include provision—
(a)about costs;
(b)about interest on late payments under notices;
(c)about references to arbitration;
(d)about appeals.
(9)Any sum which—
(a)an electricity supplier is required by virtue of regulations to pay to a CFD counterparty, and
(b)has not been paid by the date on which it is required by virtue of regulations to be paid,
may be recovered from the electricity supplier by the CFD counterparty as a civil debt due to it.
(10)In this section “electricity supplier”, subject to any provision made by regulations, means a person who is a holder of a licence to supply electricity under—
(a)section 6(1)(d) of EA 1989, or
(b)Article 10(1)(c) of the Electricity (Northern Ireland) Order 1992 (S.I. 1992/231 (N.I. 1)).