delete The Non-Domestic Alternative Fuel Payment Application Scheme Pass-through Requirement Regulations 2023
These Regulations establish requirements for 'relevant intermediaries' in the energy supply chain to pass through government 'scheme benefits' (payments under the Non-Domestic Alternative Fuel Payment scheme) to end users. They mandate 'just and reasonable' pass-through amounts, prescribe detailed calculation methodologies, impose notification requirements on intermediaries, and provide enforcement mechanisms including civil debt recovery and interest (2% above Bank base rate) for failed pass-throughs.
This regulation exemplifies government overreach disguised as consumer protection. It imposes price controls through mandated 'just and reasonable' pass-through calculations, creating administrative burden and compliance costs that ultimately are passed to consumers. The detailed prescription of calculation methods (proportional allocation, tariff adjustments, etc.) and notification requirements micro-manages commercial relationships that should be governed by contract. It addresses a hypothetical market failure (that intermediaries would retain government subsidies) with prescriptive intervention that itself distorts incentives, reduces flexibility, and creates litigation risk. As a response to the temporary energy crisis, this has become permanent regulation with ongoing compliance costs. The civil debt recovery and interest provisions add unnecessary legal complexity to what should be straightforward commercial arrangements.