Search Legislation

The Electricity and Gas (Energy Company Obligation) Order 2012

Draft Legislation:

This is a draft item of legislation and has not yet been made as a UK Statutory Instrument. This draft has been replaced by a new draft, The Electricity and Gas (Energy Companies Obligation) Order 2012 ISBN 978-0-11-153027-6

PART 2Overall carbon emissions reduction target, overall carbon saving community target and overall home heating cost reduction target

Overall carbon emissions reduction target, carbon saving community target and home heating cost reduction target

3.—(1) For the period 1st October 2012 to 31st March 2015 the overall—

(a)carbon emissions reduction target is 20.9 million lifetime tonnes of carbon dioxide;

(b)carbon saving community target is 6.8 million lifetime tonnes of carbon dioxide;

(c)home heating cost reduction target is £4.2bn cost savings.

(2) The Administrator must ensure that the sum of all—

(a)total carbon emissions reduction obligations imposed on suppliers equals the overall carbon emissions reduction target;

(b)total carbon saving community obligations imposed on suppliers equals the overall carbon savings community target; and

(c)total home heating cost reduction obligations imposed on suppliers equals the overall home heating cost reduction target.

Definition of a supplier

4.—(1) A licence-holder is a supplier where the licence-holder supplies, or for a group company, the group supplies, more than—

(a)250,000 domestic customers on 31st December of any relevant year; and

(b)a qualifying supply in the year ending on that date.

(2) For the purposes of paragraph (1), where a licence-holder (“L”) is a member of a group (“G”), the supplies made by G are to be determined by reference to the type of supply in respect of which L is a licence-holder.

(3) A new supplier is a supplier to whom paragraph (1) applies for the first time on 31st December 2012 or 31st December 2013.

(4) For the purposes of determining the number of domestic customers of a licence-holder under this Order, a domestic customer who receives electricity and gas from a dual licence-holder is a separate domestic customer under each licence.

(5) Where a dual licence-holder satisfies paragraph (1) in respect of electricity or gas that licence-holder is a separate supplier in respect of each supply.

Article 4: group companies

5.—(1) This article applies for the purposes of article 4(1).

(2) Whether or not a licence-holder is a member of a group with another licence-holder is to be determined on the date referred to in article 4(1).

(3) Where under paragraph (2) a licence-holder is a member of a group with another licence-holder, the amount of electricity or, as applicable, gas supplied by the group in the year ending on the date referred to in article 4(1), is the amount supplied by those licence-holders whether or not they were members of the group throughout that year.

Overall obligation period

6.—(1) The overall obligation period is the period—

(a)commencing on 1st October 2012, except for a new supplier; and

(b)ending on 31st March 2015.

(2) For a new supplier the overall obligation period commences on, as applicable, 1st April 2013 or 1st April 2014.

Notification by suppliers of domestic customers and energy supplied

7.—(1) A supplier must notify the Administrator by the notification date in each year in which any part of the overall obligation period falls of—

(a)the number of that supplier’s domestic customers in the notification period ending on the 31st December immediately prior to the notification date;

(b)the amount of electricity or gas supplied to its domestic customers in the notification period ending on the 31st December immediately prior to the notification date.

(2) Where a supplier fails to do so or where the Administrator is satisfied that a notification is inaccurate, the Administrator may determine for the purposes of paragraph (1) the number of domestic customers of a supplier or the amount of electricity or gas supplied.

(3) Where a supplier (“S”) is a group company on the 31st December immediately prior to the notification date, S must also notify the Administrator by the notification date of the name of each other supplier in the group, its company registration number and the amount of electricity or gas supplied by the group in the relevant year immediately prior to the notification date.

(4) In paragraph (3), “each other supplier in the group” means each supplier which makes the type of supply in respect of which S is a supplier.

(5) Where under paragraph (3) a supplier is a member of a group with another supplier, the amount of electricity or, as applicable, gas supplied by the group in the relevant year immediately prior to the notification date is the amount supplied by those suppliers whether or not a supplier was a member of the group throughout that year.

(6) Where a supplier fails to provide the information in paragraph (3), or considers any of the information notified by the supplier under that paragraph is inaccurate, the Administrator may for the purposes of that paragraph determine the matters to which that information relates.

(7) A determination by the Administrator under paragraph (2) or (6) is to be treated as if it were notified by the supplier.

(8) In this article, “notification date” means—

(a)1st September 2012; and

(b)thereafter, 1st February of the years 2013 and 2014.

Back to top

Options/Help

Print Options

Close

Legislation is available in different versions:

Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.

Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.

Close

Opening Options

Different options to open legislation in order to view more content on screen at once

Close

Draft Explanatory Memorandum

Draft Explanatory Memorandum sets out a brief statement of the purpose of a Draft Statutory Instrument and provides information about its policy objective and policy implications. They aim to make the Draft Statutory Instrument accessible to readers who are not legally qualified and accompany any Statutory Instrument or Draft Statutory Instrument laid before Parliament from June 2004 onwards.

Close

More Resources

Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • correction slips
  • links to related legislation and further information resources
Close

Impact Assessments

Impact Assessments generally accompany all UK Government interventions of a regulatory nature that affect the private sector, civil society organisations and public services. They apply regardless of whether the regulation originates from a domestic or international source and can accompany primary (Acts etc) and secondary legislation (SIs). An Impact Assessment allows those with an interest in the policy area to understand:

  • Why the government is proposing to intervene;
  • The main options the government is considering, and which one is preferred;
  • How and to what extent new policies may impact on them; and,
  • The estimated costs and benefits of proposed measures.
Close

More Resources

Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as draft version that was used for the print copy
  • correction slips

Click 'View More' or select 'More Resources' tab for additional information including:

  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • links to related legislation and further information resources