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reg 13

Price‑capping for arrangement sought or application made during 2‑year notice period

In force
Part 5Decommissioning distribution systems

13 Price‑capping for arrangement sought or application made during 2‑year notice period

(1)

In this regulation —

2‑year notice period, in relation to premises, means the 2‑year period beginning on the day on which the owner of the premises is notified of the proposal to decommission the part of the distribution system.

Note for this definition:

A 2‑year notice period may occur wholly before or wholly after decommissioning or partly before and partly after decommissioning, depending on when the owner of the premises is notified of the proposal to decommission.

(2)

Subregulation (3) applies in relation to an arrangement sought or an application made, as described in regulation 4(1), for premises to be connected or attached to a part of a distribution system if —

(a)

the distributor has notified the owner of the premises that the distributor proposes to decommission that part of, or the whole of, the distribution system (whether notification is given before, on or after commencement day); and

(b)

the arrangement was sought or application was made —

(i)

on or after commencement day; and

(ii)

during the 2‑year notice period for the premises.

(3)

Regulation 5A (including as it may apply under regulation 11) applies in relation to the arrangement sought or application made as if regulation 5A(2) were as follows:

(2)

The distributor may require that a contract be entered into accepting liability to pay to the distributor —

(a)

the lesser of —

(i)

the amount that it would cost the distributor to provide an SPS in a way that efficiently minimises costs in accordance with accepted good industry practice as it would be applied by a prudent distributor; and

(ii)

the amount that it would cost the distributor to make the connection (to the distribution system) in the lowest cost way that is sustainable for making connections of that kind in accordance with accepted good industry practice as it would be applied by a prudent distributor;

or

(b)

any greater amount that it is agreed to be paid.

(4)

However, if the distributor no longer proposes to decommission that part of the distribution system, subregulation (2) (of this regulation) does not apply in relation to an arrangement sought or application made after that.

[Regulation 13 inserted: SL 2021/185 r. 13.]

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