Page type: primary-anchored (mirrors Warm Home Discount (Reconciliation) Regulations 2022, SI 2022/1162)
Warm Home Discount: Reconciliation Regulations
The Warm Home Discount (Reconciliation) Regulations 2022 govern the financial mechanism for sharing the costs of WHD rebates among energy suppliers in proportion to their market share of GB domestic customers.
Primary source: ~/knowledge/sources/legislation/uk/si-2022-1162-whd-reconciliation.md
Last updated: 2026-04-05
Purpose
This SI is financial plumbing. The WHD scheme itself (GBP 150 rebate to eligible customers) is created by the Warm Home Discount (England and Wales) Regulations 2022 and the Warm Home Discount (Scotland) Regulations 2022. This SI ensures that the costs of delivering those rebates are shared fairly. Suppliers who deliver more rebates than their market share warrants get compensated; those who deliver fewer pay in.
Enabling powers
Energy Act 2010, ss.11 and 31(5)-(6).
How the reconciliation works
Market share calculation (Reg 5)
Market share = X / Y, where: - X = supplier's GB domestic customer numbers - Y = total GB domestic customers across all scheme suppliers
Dual fuel customers count as two (one electricity, one gas).
Interim reconciliation (Regs 6-7)
Optional, directed by the Secretary of State. Prevents cash-flow problems mid-year. - Interim liability = GBP 150 x N (eligible customers delivered to) - Market share liability = GBP 150 x (M% x T) - Difference paid/received
Final reconciliation (Regs 8-10)
Mandatory post-year-end. Adjusts for interim payments and undelivered rebates. - Actual contribution = (A - F) x GBP 150 - Market share contribution = M% x aggregate delivered rebates
Default and enforcement
| Mechanism | Regulation | Effect |
|---|---|---|
| Late interest | Reg 14 | BoE base rate + 2 percentage points |
| Mutualisation | Reg 12 | Defaulter's debt spread across remaining suppliers by market share |
| Licence termination | Reg 13 | Interim becomes final; supplier excluded from future cycles |
| Make-right | Reg 16 | Error correction with interest |
| Set-off | Reg 18 | Ofgem may net simultaneous payments and liabilities |
Scotland (Reg 17)
Scotland's reconciliation uses the identical mechanism applied by textual substitution. There is no separate Scottish reconciliation fund.
Cross-references
- WHD (England and Wales) Regulations 2022, the primary scheme rules
- WHD (Scotland) Regulations 2022, the Scottish scheme rules
- Energy Act 2010, the enabling Act
- ECO4 Order, a related supplier obligation scheme