36AD—Feeding electricity into networks—requirements on holder of
licence authorising retailing
(1) It is a condition
of the licence of the electricity entity that has the relevant contract to
sell electricity as a retailer to a qualifying customer who feeds electricity
generated by a qualifying generator into a distribution network, other than an
excluded network, that the retailer will, after taking into account any
requirements prescribed by the regulations—
(a)
credit against the charges payable by the qualifying customer for the sale of
electricity to the qualifying customer the prescribed amount, or an amount
determined by the retailer, being an amount greater than the
prescribed amount, for electricity fed into the network in excess of the
electricity used by the qualifying customer (after taking into account the
operation of the following subsections); and
(b)
reflect the credits under paragraph (a) and section 36AE in the
charges payable by the qualifying customer for the sale and supply of
electricity; and
(c)
provide to the qualifying customer information relating to—
(i)
the amount of electricity fed into the distribution
network by the qualifying customer; and
(ii)
the amounts to be credited for the benefit of the
qualifying customer for electricity fed into the distribution network.
(2) If the whole of
the amounts to be credited to a qualifying customer under paragraph (a)
and section 36AE(1) in respect of electricity fed into a distribution
network in a particular billing period has not been set-off against the
charges payable by the qualifying customer for the supply of electricity at
the end of that billing period, the qualifying customer is, subject to
subsection (3), entitled to the payment of the outstanding balance.
(3) A retailer may, in
respect of any outstanding balance to which a qualifying customer is entitled
under subsection (2), pay the balance—
(a) at
the end of the billing period referred to in subsection (2); or
(b) not
later than 1 year after the end of the billing period referred to in
subsection (2) (but in such an event the retailer must pay all
outstanding balances at that time).