SCHEDULE 2 Determination of aggregate non-core spending obligation
Regulation 18
Introduction
1 The aggregate non-core spending obligation for a scheme year (the “current scheme year”) must be determined in accordance with this Schedule.
Interpretation
2 In this Schedule—
“aggregate core spending estimate”—
for scheme years 14 and 15, means the CGS estimate for the scheme year as defined in Schedule 1 to the 2022 Regulations;
for any other scheme year, means the aggregate core spending estimate for the scheme year required by regulation 8 of these Regulations (including, where relevant, any update under that regulation);
“core spending Part” means—
in relation to scheme years 14 and 15, Part 3 of the 2022 Regulations;
in any other case, Part 3 of these Regulations;
“initial overall spending target” means—
£92 million for scheme year 16;
£92 million for scheme year 17;
£92 million for scheme year 18;
£93 million for scheme year 19;
£93 million for scheme year 20;
“preceding scheme year” means—
where the current scheme year is scheme year 16, scheme year 15;
in any other case, the scheme year preceding the current scheme year;
“Year-2” means—
where the current scheme year is scheme year 16, scheme year 14;
where the current scheme year is scheme year 17, scheme year 15;
in any other case, the scheme year preceding the preceding scheme year.
Adjusted overall spending target
3 (1) The initial overall spending target for the current scheme year must be adjusted in accordance with this paragraph.
(2) The Secretary of State must—
(a) review the aggregate core spending estimate for the preceding scheme year; and
(b) if it appears to the Secretary of State that the aggregate amount of prescribed rebates provided under the core spending Part in the preceding scheme year will be greater or less than the aggregate core spending estimate for that scheme year, adjust the estimate accordingly.
(3) If the aggregate core spending estimate for the preceding scheme year is reduced under sub-paragraph (2)(b), the Secretary of State must increase the initial overall spending target for the current scheme year by the same amount.
(4) If the aggregate core spending estimate for the preceding scheme year is increased under sub-paragraph (2)(b), the Secretary of State must reduce the initial overall spending target for the current scheme year by the same amount.
(5) The Secretary of State must calculate the difference between—
(a) the aggregate amount of prescribed rebates provided under the core spending Part in Year-2; and
(b) the aggregate core spending estimate for Year-2 (including any subsequent adjustments to the estimate under Schedule 1 to the 2022 Regulations or this Schedule).
(6) If the aggregate amount of prescribed rebates mentioned in sub-paragraph (5)(a) is greater than the aggregate core spending estimate mentioned in sub-paragraph (5)(b), the Secretary of State must reduce the initial overall spending target for the current scheme year by the difference.
(7) If the aggregate amount of prescribed rebates mentioned in sub-paragraph (5)(a) is less than the aggregate core spending estimate mentioned in sub-paragraph (5)(b), the Secretary of State must increase the initial overall spending target for the current scheme year by the difference.
(8) Adjustments under sub-paragraphs (6) or (7) are in addition to adjustments under sub-paragraphs (3) or (4).
(9) The adjusted overall spending target for the current scheme year is the initial overall spending target for that scheme year after adjustments (if any) under this paragraph.
Aggregate non-core spending obligation
4 The aggregate non-core spending obligation for the current scheme year is the adjusted overall spending target for that scheme year (see paragraph 3(9)) minus the aggregate core spending estimate for that scheme year.
Propose a changeSCHEDULE 3 Broader group
Regulation 26
PART 1 Mandatory eligibility criteria: benefits
1 Pension age disability payment under the Disability Assistance for Older People (Scotland) Regulations 2024.
2 Adult disability payment under the Disability Assistance for Working Age People (Scotland) Regulations 2022.
3 Universal credit under Part 1 of the Welfare Reform Act 2012.
4 Income support under Part 7 of the Social Security Contributions and Benefits Act 1992.
5 Income-based jobseeker’s allowance (as defined in section 1 of the Jobseekers Act 1995).
6 Income-related employment and support allowance (as defined in paragraph 1 of Schedule 1).
7 Housing benefit under Part 7 of the Social Security Contributions and Benefits Act 1992.
PART 2 Verification measures
1 Obtaining from each customer, orally or in writing—
(a) the customer’s name, address and telephone number;
(b) a declaration that the customer meets the supplier’s eligibility criteria; and
(c) an explanation of how the customer meets those criteria.
2 Explaining to each customer that the customer may be asked to provide further evidence of eligibility before receiving a prescribed rebate under the Scheme.
3 In relation to at least 5% of the number of customers to whom the compulsory scheme electricity supplier provides the prescribed rebate in a scheme year, obtaining documentary evidence (including copies of documents) before providing the prescribed rebate that the customer meets the supplier’s eligibility criteria.
Propose a changeSCHEDULE 4 Industry initiatives
Regulations 28, 29 and 32
PART 1 Table of industry initiatives
Column 1 – Type of initiative | Column 2 – Exceptions
1. Payments to organisations which refer to electricity or gas suppliers, or facilitate the referral of, Scotland domestic customers who— are in fuel poverty or in a fuel poverty risk group; and are, or may be, eligible for a benefit under the Scheme or any other assistance from the supplier.
2. Providing, or funding the provision by other persons of— benefit entitlement checks for persons who are resident in Scotland; or benefit entitlement checks for persons who are resident in Scotland and assistance to those persons in claiming benefits.
3. Providing to Scotland domestic customers, or funding the provision by other persons to Scotland domestic customers, of— energy efficiency measures; thermal efficiency measures; energy efficient appliances; or microgeneration. | A supplier may not count costs arising from the installation of a boiler or central heating system unless— the boiler or central heating system— is fuelled wholly by mains gas; generates heat wholly or mainly by means of a source of energy or technology mentioned in section 100(4) of the Energy Act 2008; or generates heat only by means of combustion of mains gas and a source of energy or technology mentioned in that subsection; where the boiler or central heating system that is installed (“N”) is fuelled wholly or partly by mains gas— N replaces an existing boiler or central heating system which is fuelled (whether wholly or not) by mains gas; and at least one person living in the domestic premises where N is installed— is aged 65 or over; is under compulsory school age; or has significant health problems or a disability which may be exacerbated by the cold, makes the person vulnerable to cold-related illness or means that the person spends the majority of their time in the premises; and the installation meets the requirements of Part 2 of this Schedule. A supplier may not count costs arising from the carrying out of repairs to a boiler or central heating system unless the repairs meet the requirements of Part 2 of this Schedule.
4. Providing, or funding the provision by other persons of, energy advice to Scotland domestic customers.
5. Training persons, or funding the training of persons, to provide energy advice to Scotland domestic customers. | A supplier may not count costs of training its own employees or contractors, or the employees or contractors of a company in the same group of companies as the supplier.
6. Providing assistance, or funding the provision by other persons of assistance, to reduce debts for electricity or gas supply to domestic premises, where such assistance is provided as part of a package of measures aimed at providing Scotland domestic customers with long-term relief from fuel poverty. | A supplier may not count— costs arising from a billing error by the supplier; or the part of any costs of debt write-off in relation to a Scotland domestic customer that exceeds £2,000 in a scheme year.
7. Making, or funding the making by other persons of, payments to eligible occupiers of mobile homes in Scotland.
8. Making, or funding the making by other persons of, payments towards the gas or electricity bills of Scotland domestic customers who— are living in domestic premises which are non-gas fuelled; have significant health problems or a disability; are living in domestic premises with a person who has significant health problems or a disability; are living in a community where residents are wholly or mainly in fuel poverty, or in a fuel poverty risk group; are supplied with gas or electricity through a pre-payment meter; or are in receipt of any of the benefits specified in Part 1 of Schedule 3. | A supplier may not count— the part of any payment in relation to a Scotland domestic customer that exceeds £150 in a scheme year; or payments in relation to charges incurred by a Scotland domestic customer before the date on which the payment was made.
PART 2 Installation and repair requirements for boilers and central heating systems
Installation of boilers and central heating systems
1 (1) The installation of a boiler or a central heating system meets the requirements of this Part if the conditions in sub-paragraph (2) or (3) are satisfied.
(2) The conditions in this sub-paragraph are that—
(a) the boiler or central heating system is installed by, or under the responsibility of, a person who is registered with TrustMark for the purpose of installing boilers or central heating systems;
(b) a certificate of lodgement is issued by the operator of TrustMark in respect of the installation; and
(c) the installation adheres to the relevant TrustMark requirements for quality assurance and consumer protection, including installation standards and arrangements for repairs and other remedies, required by virtue of the TrustMark registration.
(3) The conditions in this sub-paragraph are that—
(a) the boiler or central heating system is installed subject to arrangements for quality assurance and consumer protection, including installation standards and arrangements for repairs and other remedies, which are equivalent to the requirements under TrustMark; and
(b) the installation adheres to those requirements.
(4) For the purposes of sub-paragraph (2)(c) and (3)(b), the installation of a boiler or a central heating system is to be treated as adhering to the relevant TrustMark or equivalent requirements unless—
(a) the installation is referred for failing to meet the relevant requirements to the Authority by the operator of TrustMark or the equivalent person; and
(b) the referral is not withdrawn before 31st August following the end of the scheme year in which the boiler or central heating system is installed.
Repairs to boilers and central heating systems
2 (1) Repairs to a boiler or a central heating system meet the requirements of this Part if the conditions in sub-paragraph (2) are satisfied.
(2) The conditions in this sub-paragraph are that—
(a) the boiler or central heating system is repaired by, or under the responsibility of, a person who is registered with TrustMark for the purpose of repairing boilers or central heating systems; and
(b) a certificate of lodgement is issued by the operator of TrustMark in respect of the repairs.
PART 3 Interpretation
Interpretation
3 (1) In this Schedule—
“certificate of lodgement” means a document entitled “TrustMark Certificate of Lodgement” which sets out the address at which a measure has been installed or repaired and the type of measure;
“mains gas” means a supply of a kind mentioned in section 5(1)(b) of the Gas Act 1986;
“TrustMark” means the scheme of that name operated by TrustMark (2005) Limited, a company registered in England and Wales with company number 05480144.
(2) For the purposes of this Schedule, a person (“P”) is an eligible occupier of a mobile home if—
(a) P occupies the mobile home as their sole or main residence; and
(b) P or, where both P and P’s partner occupy the mobile home as their sole or main residence, P or P’s partner is in fuel poverty or in a fuel poverty risk group.
(3) In sub-paragraph (2)—
“mobile home” has the meaning given in section 5 of the Mobile Homes Act 1983;
“occupier” has the meaning given in section 1 of the Mobile Homes Act 1983.
(4) For the purposes of this Schedule, premises are non-gas fuelled if the main space heating system is not—
(a) fuelled by mains gas; or
(b) a district heating system.
(5) In sub-paragraph (4), “district heating system” means a system which delivers heat through pipes or conduits to two or more domestic premises.
Propose a change