The Energy-Intensive Industry Electricity Support Payments and Levy Regulations 2024

PART 2 SUPPORT FOR ENERGY-INTENSIVE ACTIVITIES

Applications for an electricity support payment

7.—(1) Before the end of a period of one month starting with the last day of each quarter, any person who held an EII certificate for the whole of any month in that quarter may apply to the EII support payments administrator for an electricity support payment in respect of that month.

(2) An application under paragraph (1) must include—

(a) the name of the applicant;

(b) an address where the applicant can be contacted;

(c) an email address where the applicant can be contacted;

(d) details about the EII certificate referred to in that paragraph, including any unique identifiers.

(3) Subject to paragraph (5), an application under paragraph (1) must include, for each month in respect of which an application is made—

(a) the total value of the network charges paid by the applicant in respect of electricity which passed through the electricity meter in respect of which that EII certificate was issued;

(b) either—

(i) confirmation from a director of the applicant (or, where an applicant is not a company, another person in an equivalent position) that those network charges were due and were paid, or

(ii) other evidence which is sufficient to satisfy the EII support payments administrator that those network charges were due and were paid;

(c) details of the electricity supplier or suppliers which supplied electricity to the meter in respect of which that EII certificate was issued;

(d) where paragraph (6) applies, sufficient information on the inaccuracy to allow the EII support payments administrator to understand whether any determination it made under regulation 9, 10 or 12 was inaccurate.

(4) Paragraph (5) applies where—

(a) an applicant obtains the electricity measured by the meter in respect of which they have been issued an EII certificate, from a third party who is not an electricity supplier;

(b) the applicant has an agreement with that third party under which the applicant pays them a sum which is directly referrable to some or all of the network charges incurred by that third party in respect of the electricity used by the applicant.

(5) Where this paragraph applies, paragraph (3) must be read as if—

(a) the reference to network charges—

(i) includes charges imposed on the applicant by the third party referred to in paragraph (4)(a), which are directly referrable to network charges paid by that third party;

(ii) does not include operational or other administrative costs incurred either by the applicant or that third party in the operation of their agreement;

(b) the value of network charges is not to exceed that which can reasonably be attributed to the use of electricity by the applicant;

(c) reference to the payment of network charges includes payment to the third party referred to in paragraph (4)(a).

(6) This paragraph applies where—

(a) an applicant has become aware of an inaccuracy in information it provided as part of a previous application under paragraph (1) (including where that inaccuracy arises as a result of updated information);

(b) the inaccuracy is capable of affecting any sum determined under regulation 9, 10 or 12;

(c) the inaccuracy has not already been communicated to the EII support payments administrator as required by paragraph (3)(d).

Publication of estimated levy fund size

8.—(1) On the first working day of the sixth month after any claim month, the EII support payments administrator must publish an estimate of the total amount applied for in relation to that month, in accordance with paragraph (2).

(2) The estimate to be made by the EII support payments administrator under paragraph (1) shall be 60% of the total of all of the sums submitted in accordance with regulation 7(3)(a) (including as it applies by reference to regulation 7(5)) in applications made in respect of that claim month.

Determination of applications

9.—(1) This regulation applies in relation to information provided in accordance with regulation 7(3)(a) to (c) in respect of any particular claim month.

(2) If the EII support payments administrator does not consider that it has sufficient information to make the determination described in paragraph (5), it must issue a notice to the applicant setting out—

(a) details of the application to which this notice relates;

(b) that it does not have sufficient information to make one or more determinations in relation to that application;

(c) the information that it needs in order to make all such determinations;

(d) the date of the notice and the period within which the information referred to in subparagraph (c) must be provided to it;

(e) the address or email address to which that information must be provided;

(f) that failure to provide the information requested may result in a claim being rejected or accepted on different terms.

(3) The period set out in paragraph (2)(d)—

(a) may only be less than 5 working days in exceptional circumstances;

(b) must come to an end before the calculation date referred to in paragraph (5).

(4) If, at any time, the EII support payments administrator does not consider that it has sufficient information to make the determination described in paragraph (5) it may request information from the electricity supplier which charged the network charges in respect of which the application was made and that supplier is under a duty to provide the requested information within a reasonable period of time.

(5) The EII support payments administrator must, before the calculation date relating to the levy month associated with the claim month in respect of which an application is made, make a determination as to the value of the network charges in respect of which the applicant was entitled to make the application.

(6) Where the EII support payments administrator has issued a notice under paragraph (2), it may not make the determination described in paragraph (5) until after the expiry of the period required to be set out in that notice by paragraph (2)(d).

(7) If the EII support payments administrator does not consider that it has sufficient information to properly assess the information at the point it makes a determination under paragraph (5), it must make a determination of zero.

Corrections to applications

10.—(1) This regulation applies in relation to information provided in accordance with regulation 7(3)(d).

(2) If the EII support payments administrator does not consider that it has sufficient information to make the determination described in paragraph (5) it must issue a notice to the applicant setting out—

(a) details of the application to which this notice relates;

(b) that it does not have sufficient information to make one or more determinations in relation to a correction;

(c) the information that it needs in order to make all such determinations;

(d) the date of the notice and the period within which the information referred to in subparagraph (c) must be provided to it;

(e) the address or email address to which the information must be provided;

(f) that failure to provide the information requested may result in a claim being rejected or accepted on different terms.

(3) The period set out in paragraph (2)(d)—

(a) may only be less than 5 working days in exceptional circumstances;

(b) must come to end before the calculation date referred to in paragraph (5).

(4) If the EII support payments administrator does not consider that it has sufficient information to make the determination described in paragraph (5) it may request information from the electricity supplier which charged the network charges in respect of which the application was made and that supplier is under a duty to provide the requested information within a reasonable period of time.

(5) The EII support payments administrator must, as soon as reasonably practicable, make a determination as to the change (whether positive or negative) in the value of any figure previously determined under this regulation, regulation 9 or regulation 12, resulting from the further information provided.

(6) Where the EII support payments administrator has issued a request for information under paragraph (4), it may not make the determination described in paragraph (5) until after the expiry of the period set out in that request under paragraph (2)(d).

(7) If, having made reasonable efforts to secure sufficient information, the EII support payments administrator still does not consider that it has sufficient information to properly make the determination under paragraph (5), it must make a determination that seems reasonable to it given the information it has available at that time.

Dispute Notices

11.—(1) An applicant may dispute any determination made by the EII support payments administrator under regulation 9 or 10 by giving a notice in writing to the EII support payments administrator setting out—

(a) the determination the applicant is disputing;

(b) the basis on which they dispute the determination.

(2) For the purposes of paragraph (1), a dispute about a determination made by the EII support payments administrator includes a dispute where the EII support payments administrator has failed to make a determination.

(3) A notice under paragraph (1) must be given by an applicant before—

(a) the 28th day after the day on which the determination which is the subject of the dispute was notified to the applicant; or

(b) in the case of a dispute about the failure of the EII support payments administrator to make a determination, the 28th day after the last day by which the determination which is the subject of the dispute should have been made.

(4) Where an applicant has given a notice under paragraph (1) in respect of a determination, that determination still has effect notwithstanding the giving of that notice.

Dispute determinations

12.—(1) Where the EII support payments administrator receives a notice under regulation 11 it must, before 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).

(2) If the EII support payments administrator does not consider that it has sufficient information to make the decision required by paragraph (1) it must issue a notice to the applicant who gave the notice under regulation 11(1), setting out—

(a) details of the notice to which this notice relates;

(b) that it does not have sufficient information to accept the notice;

(c) the information that it needs in order to make one or more of the decisions required by paragraph (1);

(d) the date of the notice it is issuing and the period within which the information must be provided to it;

(e) the address or email address to which the information must be provided;

(f) that failure to provide the information requested may result in a claim being rejected or accepted on different terms.

(3) The period set out in paragraph (2)(d)—

(a) may only be less than 5 working days in exceptional circumstances;

(b) must come to end before the day on which it must accept or reject the notice in accordance with paragraph (1).

(4) If the EII support payments administrator does not consider that it has sufficient information to properly make the decision required by paragraph (1) it may request information from the electricity supplier which charged the network charges in respect of which the notice under regulation 11 was issued and that supplier is under a duty to provide the requested information within a reasonable period of time.

(5) Where the EII support payments administrator accepts such a notice (in full or in part) it must, as soon as reasonably practicable, determine the change in value of any previous determination resulting from that acceptance.

(6) Whether the EII support payments administrator rejects or accepts such notice (in full or in part), it must, as soon as reasonably practicable, issue a notice to the person who gave that notice, setting out its decision and the reasons for it.

Calculating individual support payment entitlements

13.—(1) On the calculation date for each levy month the EII support payments administrator must calculate the entitlement of each applicant, in respect of the associated claim month, in accordance with paragraph (2).

(2) An applicant’s EII support payment entitlement for the claim month referred to in paragraph (1) is 60% of the sum of the following—

(a) the EII support payments administrator’s determination, in accordance with regulation 9(5) or (7) (determination of application), of the applicant’s entitlement in respect of that claim month;

(b) any addition or subtraction, as the case may be, resulting from a correction, determined in accordance with regulation 10(5) or (7) (corrections to applications), which has not already been accounted for;

(c) any addition or subtraction, as the case may be, resulting from a dispute, determined in accordance with regulation 12 (dispute determinations), which has not already been accounted for.

(3) Once it has been calculated, the EII support payments administrator must communicate to each applicant—

(a) the sum calculated in accordance with paragraph (2) in respect of that applicant;

(b) the month in respect of which the calculation under paragraph (2)(a) was made;

(c) details of any addition or subtraction made under paragraphs (2)(b) or (c).

EII support payments administrator costs

14.—(1) On each calculation date the EII support payments administrator must calculate its costs in carrying out its functions under these Regulations for the previous month.

(2) The costs referred to in paragraph (1) must not include costs in respect of which provision (including administrative provision) has been made for recovery by other means.

(3) Subject to paragraph (2) the costs referred to in paragraph (1) may include—

(a) costs, expenses and any other outgoings incurred in establishing and operating processes supporting the exercise of functions under these Regulations;

(b) costs associated with the bringing or defending of legal proceedings arising out of action taken under these Regulations;

(c) costs, expenses and any other amounts for which the EII support payments administrator may be legally liable (including to third parties);

(d) costs reasonably incurred in connection with action taken under regulation 31.

Reserve funds

15.—(1) The EII support payments administrator must, on the first calculation date and from time to time thereafter, determine an amount that it is to hold as a reserve fund, to be calculated in accordance with paragraph (2).

(2) Subject to paragraphs (3) and (4), the reserve fund shall be an amount that is twice the amount that the EII support payments administrator reasonably considers is likely to be equal to the largest EII support payment total (within the meaning given in regulation 18(3)) that would occur in the following 12 months.

(3) The amount of the reserve fund to be accumulated during the first month in respect of which paragraph (1) applies is 1/12th of the amount determined in accordance with paragraph (2).

(4) The amount of the reserve fund to be accumulated in the months following the month referred to in paragraph (3) above, shall increase each month by 1/12th of the amount determined in accordance with paragraph (2), until the end of the 12th month.

(5) Any funds collected under these Regulations that remain undisbursed at the end of any month shall be added to the reserve fund.

EII support payment requirement

16.  On each calculation date, the EII support payments administrator must inform the EII levy administrator of the following—

(a) the total amount of all of the sums determined by the EII support payments administrator in accordance with regulation 13(2) for the associated claim month;

(b) the EII support payments administrator’s costs, calculated in accordance with regulation 14;

(c) the amount that is required to ensure that the reserve fund is at the levels described in regulation 15(1), including where that figure has a negative value;

(d) the total of the sums calculated in accordance with paragraphs (a) to (c).