The Clean Heat Market Mechanism Regulations 2025
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Change 1
21 Notification of changes of corporate structure: scheme participants and near-threshold suppliers
(1) This regulation applies where, during the period of operation of the Scheme— (a) there is a change in the membership of a group of undertakings which is a scheme participant by virtue of regulation 9(2) or a near-threshold supplier by virtue of regulation 10(2); (b) an undertaking is a scheme participant by virtue of regulation 9(1) or a near-threshold supplier by virtue of regulation 10(1) and that undertaking— (i) becomes a member of a group of undertakings; or (ii) merges with another undertaking to create a new undertaking; or (c) a scheme participant or a near-threshold supplier transfers all or part of its business which consists of or includes being the supplier of fossil fuel boilers which are the subject of qualifying sales, or being the supplier of heat pumps which are installed— (i) to an undertaking which is not a group undertaking in relation to it; or (ii) where the scheme participant or near-threshold supplier is a group of undertakings, to an undertaking which is not a member of the group. (2) The circumstances described in paragraph (1) are referred to in this regulation as a “corporate structure change”. (3) Where there is a corporate structure change which affects a scheme participant or near-threshold supplier, it must, before the end of the period of 28 days beginning with the date on which the change comes into effect, notify the administrator— (a) of the nature of the change and the date on which it had, or will have, effect; and (b) how any certificates which were held by the scheme participant or near-threshold supplier which is affected by the corporate structure change are to be apportioned among any scheme participants or certificate holders which will result from the change. (4) Where there is a corporate structure change which affects a scheme participant, it must, before the end of the period of 28 days beginning with the date on which the change comes into effect, notify the administrator— (a) how the qualifying sales of fossil fuel boilers of which the scheme participant is the supplier during the scheme year in which the corporate structure change has effect are to be apportioned among any scheme participants or near-threshold suppliers which will result from the change; and (b) how the low-carbon heat target of the scheme participant for the scheme year in which the corporate structure change has effect is to be apportioned among any scheme participants which will result from the change. (5) Paragraph (6) applies where— (a) an undertaking or a group of undertakings which is a scheme participant is affected by a corporate structure change during a scheme year; (b) no scheme participants result from the corporate structure change for that scheme year, by virtue of the apportionment notified under paragraph (4)(a); and (c) the scheme participant referred to in sub-paragraph (a) has not yet met its low-carbon heat target for the scheme year in accordance with regulation 25(1). (6) Where this paragraph applies, the corporate structure change is treated as not having taken place until the scheme participant has met its low-carbon heat target in accordance with regulation 25(1), subject to that scheme participant not being permitted to carry forward any part of that low-carbon heat target under regulation 27. (7) The notification in paragraph (3) and, where applicable, paragraph (4) must be accompanied by— (a) the information required to be provided under regulation 14(1) or (3) (registration obligation) in relation to any new scheme participants or near-threshold suppliers which will result from the corporate structure change; and (b) evidence that all of the undertakings affected by the corporate structure change agree to the terms of the notification to the administrator as required by this regulation. (8) For the purposes of complying with the obligations in this regulation, a reference in this regulation to an undertaking which is a scheme participant or a near-threshold supplier and which ceases to exist in the course of a merger with another undertaking includes a reference to a new undertaking which is created as a result of the merger. (9) Until the obligations in this regulation are complied with, and subject to paragraph (6), a corporate structure change is treated, for the purposes of the Scheme, as not having taken place.
21 Notification of changes of corporate structure: scheme participants and near-threshold suppliers
(1) This regulation applies where, during the period of operation of the Scheme— (a) there is a change in the membership of a group of undertakings which is a scheme participant by virtue of regulation 9(2) or a near-threshold supplier by virtue of regulation 10(2); (b) an undertaking is a scheme participant by virtue of regulation 9(1) or a near-threshold supplier by virtue of regulation 10(1) and that undertaking— (i) becomes a member of a group of undertakings; or (ii) merges with another undertaking to create a new undertaking; or (c) a scheme participant or a near-threshold supplier transfers all or part of its business which consists of or includes being the supplier of fossil fuel boilers which are the subject of qualifying sales, or being the supplier of heat pumps which are installed— (i) to an undertaking which is not a group undertaking in relation to it; or (ii) where the scheme participant or near-threshold supplier is a group of undertakings, to an undertaking which is not a member of the group. (2) The circumstances described in paragraph (1) are referred to in this regulation as a “corporate structure change”. (3) Where there is a corporate structure change which affects a scheme participant or near-threshold supplier, it must, before the end of the period of 28 days beginning with the date on which the change comes into effect, notify the administrator— (a) of the nature of the change and the date on which it had, or will have, effect; and (b) how any certificates which were held by the scheme participant or near-threshold supplier which is affected by the corporate structure change are to be apportioned among any scheme participants or certificate holders which will result from the change. (4) Where there is a corporate structure change which affects a scheme participant, it must, before the end of the period of 28 days beginning with the date on which the change comes into effect, notify the administrator— (a) how the qualifying sales of fossil fuel boilers of which the scheme participant is the supplier during the scheme year in which the corporate structure change has effect are to be apportioned among any scheme participants or near-threshold suppliers which will result from the change; and (b) how the low-carbon heat target of the scheme participant for the scheme year in which the corporate structure change has effect is to be apportioned among any scheme participants which will result from the change. (5) Paragraph (6) applies where— (a) an undertaking or a group of undertakings which is a scheme participant is affected by a corporate structure change during a scheme year; (b) no scheme participants result from the corporate structure change for that scheme year, by virtue of the apportionment notified under paragraph (4)(a); and (c) the scheme participant referred to in sub-paragraph (a) has not yet met its low-carbon heat target for the scheme year in accordance with regulation 25(1). (6) Where this paragraph applies, the corporate structure change is treated as not having taken place until the scheme participant has met its low-carbon heat target in accordance with regulation 25(1), subject to that scheme participant not being permitted to carry forward any part of that low-carbon heat target under regulation 27. (7) The notification in paragraph (3) and, where applicable, paragraph (4) must be accompanied by— (a) the information required to be provided under regulation 14(1) or (3) (registration obligation) in relation to any new scheme participants or near-threshold suppliers which will result from the corporate structure change; and (b) evidence that all of the undertakings affected by the corporate structure change agree to the terms of the notification to the administrator as required by this regulation. (8) For the purposes of complying with the obligations in this regulation, a reference in this regulation to an undertaking which is a scheme participant or a near-threshold supplier and which ceases to exist in the course of a merger with another undertaking includes a reference to a new undertaking which is created as a result of the merger. (9) Until the obligations in this regulation are complied with, and subject to paragraph (6), a corporate structure change is treated, for the purposes of the Scheme, as not having taken place.
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