PART 1 Introduction

Citation and commencement_I1

1. This Order may be cited as the Electricity and Gas (Energy Companies Obligation) Order 2012 and comes into force on the day after the day on which this Order is made.

Interpretation_I2

2. In this Order—

[^F1 “2012 low income and rural document” means the document entitled “Energy Company Obligation, Carbon Saving Community Obligation: Rural and Low Income Areas”, first published on 12th June 2012 and revised on 29th October 2012 and the ISBN of which is 9780108511608;

“2014 low income and rural document” means the document entitled “The Future of the Energy Company Obligation: Small Area Geographies Eligible for ECO CSCO Support”, published by the Department of Energy and Climate Change on 18th July 2014; ^F1]

“adjoining installation” has the meaning given in article 14(2);

“Administrator” means the Gas and Electricity and Markets Authority established by section 1 of the Utilities Act 2000 ;

“affordable warmth group” means a group of persons in receipt of the benefits in Schedule 1;

[^F2 “area of low income” means, in relation to a carbon saving community qualifying action the installation of which is carried out—

“carbon qualifying action” has the meaning given in article 12(3);

“carbon saving” means the lifetime tonnes of carbon dioxide that a qualifying action will save;

“carbon saving community qualifying action” has the meaning given in article 13(5);

“cost saving” means, in relation to a heating qualifying action,—

“district heating system” means a system that delivers heat through pipes or conduits to two or more domestic premises;

“domestic customer” means a person living in domestic premises in Great Britain who is supplied with electricity or gas at those premises wholly or mainly for domestic purposes;

“domestic energy user” means a person who uses energy in domestic premises in Great Britain wholly or mainly for domestic purposes and includes a person living in a mobile home;

“dual licence-holder” means a person holding a licence under section 6(1)(d) of the Electricity Act 1989 ( 5 ) and a licence under section 7A of the Gas Act 1986 ( 6 );

“electricity licence-holder” means a person holding a licence under section 6(1)(d) of the Electricity Act 1989 who does not also hold a licence under section 7A of the Gas Act 1986 ;

“excess action” has the meaning given by article 21;

“gas licence-holder” means a person holding a licence under section 7A of the Gas Act 1986 who does not also hold a licence under section 6(1)(d) of the Electricity Act 1989 ;

^F3...

“Green Deal report” means a report produced by a green deal assessor pursuant to a qualifying assessment in accordance with regulation 7 of the Green Deal Framework (Disclosure, Acknowledgment, Redress etc.) Regulations 2012 ( 7 );

“group company” means a licence-holder which is a member of a group of companies; and “group” refers to the group of companies of which the licence-holder is a member;

[^F4 “group excess action” means a relevant CERT action, within the meaning given in article 21ZA(9), which satisfies article 21ZA(2); ^F4]

“group of companies” means a holding company and the wholly-owned subsidiaries of that holding company where “holding company” and “wholly-owned” subsidiary have the same meaning as in section 1159 of the Companies Act 2006 ( 8 );

“hard to treat cavity” means—

“heating qualifying action” has the meaning given in article 15(3);

“heating saving” means, in relation to a heating qualifying action or an excess action, the money that would be saved by that action over its expected lifetime in heating a home to 21 degrees Celsius in the main living areas and 18 degrees Celsius in all other areas;

“householder” has the meaning given in Schedule 2;

“licence-holder” means an electricity licence-holder, a gas licence-holder or a dual licence-holder;

“lifetime tonnes of carbon dioxide” means the amount in tonnes of carbon dioxide that is expected to be saved over the lifetime of a measure installed under this Order;

“mobile home” means a home which is—

“MtCO ₂ ” means million lifetime tonnes of carbon dioxide;

“new supplier” has the meaning given in article 4(3);

“notification period” means—

and references in this Order, in relation to a phase, to the relevant notification period is to the notification period for that phase;

“overall obligation period” has the meaning given in article 6;

“phase” means one of the three phases as follows—

“Publicly Available Specification” [^F5 means—

“qualifying action” means a carbon qualifying action, a carbon saving community qualifying action or a heating qualifying action;

“qualifying boiler” means—

“qualifying supply” means the supply to domestic customers of 400 gigawatt hours of electricity or 2000 gigawatt hours of gas;

[^F6 “RdSAP 2012” means the Government’s Reduced Data Standard Assessment Procedure for energy ratings of existing dwellings (2012 Edition, version 9.92); ^F6]

“recommended measure” means a measure—

“Reduced Data Standard Assessment Procedure” means the Government’s Reduced Data Standard Assessment Procedure for energy ratings of dwellings (2009 Edition, as amended in April 2012, version 9.91)( 12 );

[^F9 “reduced phase 3 CERO”, in relation to a supplier, means the reduced phase 3 carbon emissions reduction obligation determined by the Administrator under article 8A; ^F9]

“relevant in-use factor” means—

“relevant year” means 2011, 2012 or 2013;

[^F10 “rural area” has the meaning given in article 13(8);

“rural requirement” is the requirement placed on a supplier by article 13(4);

“second amending Order” means the Electricity and Gas (Energy Companies Obligation) (Amendment) (No. 2) Order 2014 ; ^F10]

“solid wall insulation” means—

“a specified adjoining area” means, where an area of low income (“area A”) is—

“Standard Assessment Procedure” means the Government’s Standard Assessment Procedure for energy rating of dwellings (2009 Edition, as amended in October 2010)( 15 );

[^F12 “Standard Assessment Procedure 2012” means the Government’s Standard Assessment Procedure for energy rating of dwellings (2012 Edition, version 9.92); ^F12]

“supplier” has the meaning given in article 4;

[^F13 “total carbon emissions reduction obligation” means—

“total carbon saving community obligation” means the sum total of carbon savings community obligations which have been determined for a supplier in respect of phases 1, 2 and 3;

“total home heating cost reduction obligation” means the sum total of home heating cost reduction obligations which have been determined for a supplier in respect of phases 1, 2 and 3;

“U-value” means the measure in W/m ² K of heat transmission through material;

“working day” means any day other than—

PART 2 Overall carbon emissions reduction target, overall carbon saving community target and overall home heating cost reduction target

Overall carbon emissions reduction target, carbon saving community target and home heating cost reduction target_I3

3.—(1) For the period 1st January 2013 to 31st March 2015 the overall—

(a)carbon emissions reduction target is [^F1414 MtCO2^F14];

(b)carbon saving community target is 6.8 MtCO₂;

(c)home heating cost reduction target is £4.2bn cost savings.

(2) The Administrator must ensure that the sum of all—

(a)total carbon emissions reduction obligations imposed on suppliers equals the overall carbon emissions reduction target;

(b)total carbon saving community obligations imposed on suppliers equals the overall carbon savings community target; and

(c)total home heating cost reduction obligations imposed on suppliers equals the overall home heating cost reduction target.

Definition of a supplier_I4

4.—(1) A licence-holder is a supplier where the licence-holder supplies, or for a group company, the group supplies, more than—

(a)250,000 domestic customers at the end of 31st December of any relevant year; and

(b)a qualifying supply in the year ending on that date.

(2) For the purposes of paragraph (1), where a licence-holder (“L”) is a member of a group (“G”), the supplies made by G are to be determined by reference to the type of supply in respect of which L is a licence-holder.

(3) A new supplier is a supplier to whom paragraph (1) applies for the first time on 31st December 2012 or 31st December 2013.

(4) For the purposes of determining the number of domestic customers of a licence-holder under this Order, a domestic customer who receives electricity and gas from a dual licence-holder is a separate domestic customer under each licence.

(5) Where a dual licence-holder satisfies paragraph (1) in respect of electricity or gas that licence-holder is a separate supplier in respect of each supply.

Article 4: group companies_I5

5.—(1) This article applies for the purposes of article 4(1).

(2) Whether or not a licence-holder is a member of a group with another licence-holder is to be determined on the date referred to in article 4(1).

(3) Where under paragraph (2) a licence-holder is a member of a group with another licence-holder, the amount of electricity or, as applicable, gas supplied by the group in the year ending on the date referred to in article 4(1), is the amount supplied by those licence-holders whether or not they were members of the group throughout that year.

Overall obligation period_I6

6.—(1) The overall obligation period is the period—

(a)beginning with 1st January 2013, except for a new supplier; and

(b)ending with 31st March 2015.

(2) For a new supplier the overall obligation period begins with, as applicable, 1st April 2013 or 1st April 2014.

Notification by suppliers of domestic customers and energy supplied_I7

7.—(1) A person who is a supplier at the end of a notification period must notify the Administrator by the notification date for that period of—

(a)the number of that supplier’s domestic customers at the end of that period;

(b)the amount of electricity or gas supplied to its domestic customers in that period.

(2) Where a supplier fails to do so or where the Administrator is satisfied that a notification is inaccurate, the Administrator may determine for the purposes of paragraph (1) the number of domestic customers of a supplier or the amount of electricity or gas supplied.

(3) Where a supplier (“S”) is a group company at the end of a notification period, S must also notify the Administrator by the notification date for that period of the name of each other supplier in the group, its company registration number and the amount of electricity or gas supplied by the group in that period.

(4) In paragraph (3), “each other supplier in the group” means each supplier which makes the type of supply in respect of which S is a supplier.

(5) Where under paragraph (3) a supplier is a member of a group with another supplier, the amount of electricity or, as applicable, gas supplied by the group in the relevant notification period is the amount supplied by those suppliers whether or not a supplier was a member of the group throughout that notification period.

(6) Where a supplier fails to provide the information in paragraph (3), or considers any of the information notified by the supplier under that paragraph is inaccurate, the Administrator may for the purposes of that paragraph determine the matters to which that information relates.

(7) A determination by the Administrator under paragraph (2) or (6) is to be treated as if it were notified by the supplier.

(8) In this article, “notification date” means—

(a)in relation to the notification period for phase 1, the third working day after the day on which this Order is made;

(b)in relation to the notification period for phase 2, 1st February 2013;

(c)in relation to the notification period for phase 3, 1st February 2014.

PART 3 Determining carbon emissions reduction obligations, carbon saving community obligations and home heating cost reduction obligations

Determining carbon emissions reduction obligations, carbon saving community obligations and home heating cost reduction obligations_I8

8.—(1) Except where paragraph (6) or (7) applies, the Administrator must determine for each phase a supplier’s obligations in paragraph (2).

(2) The obligations referred to in paragraph (1) are a supplier’s—

(a)carbon emissions reduction obligation;

(b)carbon saving community obligation; and

(c)home heating cost reduction obligation.

(3) For the purposes of paragraph (1), the Administrator must—

(a)in the case of a supplier which is not a group company during the phase to which a determination relates, make the determination in accordance with article 9;

(b)in the case of a supplier which is a group company during the phase to which a determination relates, make the determination in accordance with article 10.

(4) A determination under paragraph (1) of a supplier’s obligations in paragraph (2) must be notified to the supplier—

(a)for phase 1, by no later than the twelfth working day after day on which the supplier has notified the Administrator under article 7(1) in relation to the relevant notification period;

(b)for phase 2 and phase 3, by no later than the last day of February prior to the commencement of the phase.

(5) In respect of a supplier to whom paragraph (6) or (7) applies, the Administrator must notify the supplier of the obligation by no later than the last day of February prior to the commencement of the relevant phase.

(6) Where a supplier is not a group company, each of a supplier’s obligations in paragraph (2) for a phase is zero where the supplier has notified under article 7 a supply of gas or electricity for the relevant notification period which does not exceed a qualifying supply.

(7) Where a supplier is a group company, each of a supplier’s obligations in paragraph (2) for a phase is zero where the supplier has notified under article 7 a supply of gas or electricity for the group for the relevant notification period which does not exceed a qualifying supply.

(8) A supplier is a group company during—

(a)phase 1, where it is a member of a group with another supplier at the end of 31st December 2011;

(b)phase 2 or phase 3, where it is a member of a group with another supplier at the end of 31st December immediately before the commencement of that phase.

[^F15Determining a supplier’s reduced phase 3 carbon emissions reduction obligation

8A.—(1) Where the Administrator has notified a supplier under article 8 that it has an obligation of more than zero for phase 3 of the carbon emissions reduction obligation, the Administrator must determine the supplier’s reduced phase 3 carbon emissions reduction obligation.

(2) The Administrator must make the determination in accordance with article 8(3), but as if, in the table in article 9, the value of “A” for phase 3 of the carbon emissions reduction obligation were 1.46 MtCO ₂ .

(3) The Administrator must notify the supplier of the supplier’s reduced phase 3 carbon emissions reduction obligation by no later than the twentieth working day after the second amending Order comes into force.^F15]

Determining obligations for a supplier who is not a member of a group_I9

9. Where this article applies, in respect of each of the obligations referred to in article 8(2), the supplier’s obligation for a phase is—

Determining obligations for a supplier who is a member of a group_I10

10. Where this article applies, in respect of each of the obligations referred to in article 8(2), the supplier’s obligation for a phase is—

Determining supply_I11

11.—(1) For the purposes of articles 9 and 10, the amount of electricity or gas supplied by a supplier or group in the relevant notification period is—

(a)where the amount notified under article 7 for that period is more than a qualifying supply but less than the amount in sub-paragraph (b)(i) or (ii) (as the case may be), the amount determined using the formula in paragraph (2);

(b)where the amount notified under article 7 for that period is equal to or more than—

(i)800 gigawatt hours of electricity; or

(ii)4000 gigawatt hours of gas,

the notified amount.

(2) The formula referred to in paragraph (1)(a) is—

PART 4 Achievement of obligations, determining savings and excess actions

Achievement of carbon emissions reduction obligation_I12

12.—(1) A supplier must achieve its total carbon emissions reduction obligation by 31st March 2015.

^F16(2) A supplier must achieve its total carbon emissions reduction obligation by promoting carbon qualifying actions ....

[^F17 (3) A carbon qualifying action is the installation, at domestic premises, of a measure in—

(a)paragraph (4) where the conditions in paragraph (7) are satisfied; or

(b)paragraph (5A) where—

(i)the conditions in paragraph (8) are satisfied; and

(ii)in the case of a secondary measure, the conditions in one of paragraphs (9) to (11) are satisfied.^F17]

(4) The measures referred to in [^F18paragraph (3)(a)^F18] are—

[^F19 (a)insulation of a hard to treat cavity where—

(i)that is a recommended measure; and

(ii)the installation is carried out before 1st April 2014;^F19]

(b)subject to paragraph (5), solid wall insulation where that is a recommended measure;

(c)subject to paragraph (6), a recommended measure other than one in sub-paragraph (a) or (b) where that measure is installed—

(i)to improve the insulating properties of the premises; [^F20and^F20]

(ii)at the same premises where a measure in sub-paragraph (a) or (b) has been or will be installed;

^F21(iii). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[^F22 (iv)on the same date as, or no more than six months before, or no more than six months after, the date on which the measure in sub-paragraph (a) or (b) is installed;^F22]

(d)a connection to a district heating system where that connection is made—

(i)at the same premises where a measure in sub-paragraph (a) or (b) has been or will be installed;

(ii)by the same supplier which installs the measure in sub-paragraph (a) or (b); and

(iii)no more than six months before, or no more than six months after, the date on which the measure in sub-paragraph (a) or (b) is installed.

(5) Where solid wall insulation is installed at [^F23domestic^F23] premises, for a measure in paragraph (4)(c) or (d) to be a qualifying action the solid wall insulation must be applied to at least 50% of the walls which are exterior-facing.

[^F24 (5A) The measures referred to in paragraph (3)(b) are—

(a)insulation of a cavity wall where that is a recommended measure;

(b)flat roof insulation where that is a recommended measure;

(c)loft insulation where that is a recommended measure;

(d)rafter insulation where that is a recommended measure;

(e)room-in-roof insulation where that is a recommended measure;

(f)a connection to a district heating system where that connection is made to premises which—

(i)do not include the top floor of the building in which those premises are located, and where the walls of those premises cannot be insulated; or

(ii)have flat roof, loft, rafter, room-in-roof or wall insulation;

(g)subject to paragraph (6A), a secondary measure.^F24]

(6) Where a measure falling within paragraph (4)(c) or (d) (“M1”) is installed before a measure described in paragraph (4)(a) or (b) (“M2”), M1 is not a qualifying action until the installation of M2 is complete.

[^F25 (6A) Where a secondary measure is installed before a measure described in paragraph (5A)(a) to (f) (“M3”), the secondary measure is not a qualifying action until the installation of M3 is complete. ^F25]

(7) The conditions referred to in [^F26paragraph (3)(a)^F26] are—

^F27(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)that the installation must be carried out—

(i)after 30th September 2012; and

(ii)in accordance with the Publicly Available Specification where the installation is referred to in the Specification.

[^F28 (8) The conditions referred to in paragraph (3)(b) are that the installation must be carried out—

(a)on or after 1st April 2014; and

(b)in accordance with the Publicly Available Specification where the installation is referred to in the Specification.

(9) The conditions in this paragraph are that the secondary measure is installed at the same premises where a measure in paragraph (5A)(a), (b), (d) or (e) has been or will be installed and the measure in paragraph (5A)(a), (b), (d) or (e)—

(a)meets the conditions in paragraph (8); and

(b)is installed—

(i)by the same supplier which installs the secondary measure; and

(ii)on the same date as, or no more than six months before, or no more than six months after, the date on which the secondary measure is installed.

(10) The conditions in this paragraph are that the secondary measure is installed at the same premises where a measure in paragraph (5A)(c) has been or will be installed and the measure in paragraph (5A)(c)—

(a)meets the conditions in paragraph (8);

(b)is installed in lofts which have no more than 150mm of insulation before the installation takes place and results in the lofts being insulated to a depth of no less than 250mm; and

(c)is installed—

(i)by the same supplier which installs the secondary measure; and

(ii)on the same date as, or no more than six months before, or no more than six months after, the date on which the secondary measure is installed.

(11) The conditions in this paragraph are that the secondary measure is installed at the same premises where a measure in paragraph (5A)(f) has been or will be installed and the measure in paragraph (5A)(f)—

(a)meets the conditions in paragraph (8); and

(b)is installed by the same supplier which installs the secondary measure.

(12) In this article, “secondary measure” means a measure other than a measure in paragraph (5A)(a) to (f), where that secondary measure is—

(a)installed to improve the insulating properties of the premises; and

(b)a recommended measure.^F28]

Achievement of carbon saving community obligation_I13

13.—(1) A supplier must achieve its total carbon saving community obligation by 31st March 2015.

^F29(2) Subject to paragraphs (3) and (4), a supplier must achieve its total carbon saving community obligation by promoting carbon saving community qualifying actions ... in an area of low income.

^F30(3) Subject to article 14, a supplier may achieve part of its total carbon saving community obligation by carrying out carbon saving community qualifying actions ... in a specified adjoining area subject to—

(a)the limit on the amount of such actions in article 14(2); and

(b)the provisions of [^F31article 14(4)^F31] .

[^F32 (4) A supplier must achieve at least 15% of its total carbon saving community obligation by promoting carbon saving community qualifying actions—

(a)to members of the affordable warmth group living in a rural area; or

(b)the installation of which is carried out on or after 1st April 2014 in a deprived rural area.^F32]

(5) A carbon saving community qualifying action is the installation [^F33, at domestic premises,^F33] of a measure in paragraph (6) where the conditions in paragraph (7) are satisfied.

(6) The measures referred to in paragraph (5) are—

(a)a recommended measure installed to improve the insulating properties of the premises; or

[^F34 (b)a connection to a district heating system where that connection is made—

(i)to premises which have loft or wall insulation; or

(ii)on or after 1st April 2014 to premises which—

(aa)do not include the top floor of the building in which those premises are located, and where the walls of those premises cannot be insulated; or

(bb)have flat roof, loft, rafter, room-in-roof or wall insulation.^F34]

(7) The conditions referred to in paragraph (5) are—

^F35(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)that the installation must be carried out—

(i)after 30th September 2012; and

(ii)in accordance with the Publicly Available Specification where the installation is referred to in the Specification.

[^F36 (8) In this article—

“deprived rural area” means an area in Great Britain which is described as a deprived rural area in the 2014 low income and rural document;

“rural area” means an area in Great Britain which is described as a rural area in the 2012 low income and rural document. ^F36]

Actions in specified adjoining areas of low income_I14

14.—(1) This article applies where there is—

(a) an area of low income (“area A”); and

(b) in relation to area A, a specified adjoining area (“area B”).

(2) Where a supplier carries out carbon saving community qualifying actions in area A (“area A installations”), that supplier may carry out carbon saving community qualifying actions in area B (“adjoining installations”) but only to the extent that the total carbon savings of the adjoining installations do not exceed 25% of the total carbon savings of the area A installations.

^F37(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) In paragraph (2) the determination whether or not the total carbon savings of the adjoining installations exceed 25% of the total carbon savings of the area A installations[^F38 (“the 25% determination”), ^F38] —

^F39(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)where there is more than one specified adjoining area which adjoins area A, must take into account the carbon saving of adjoining installations, relating to area A, installed in all those specified adjoining areas.

[^F40 (5) For the purpose of the 25% determination, where installation of a measure was carried out before 1st April 2014—

(a)it was carried out in an area of low income only if it was carried out in an area of Great Britain which is described as an area of low income in the 2012 low income and rural document; and

(b)it was carried out in a specified adjoining area only if it was carried out in a specified adjoining area which adjoins an area of Great Britain which is described as an area of low income in the 2012 low income and rural document;^F40]

Achievement of home heating cost reduction obligation_I15

15.—(1) A supplier must achieve its total home heating cost reduction obligation by 31st March 2015.

(2) Subject to paragraph (5), a supplier must achieve its total home heating cost reduction obligation by promoting heating qualifying actions to householders—

(a)who are members of the affordable warmth group; or

(b)who reside in the same home as a member of the affordable warmth group, provided that the action is carried out in that home.

(3) Subject to paragraph (4), a heating qualifying action is—

(a)the installation of a measure that will result in a heating saving;

(b)the repair of a qualifying boiler where the repair will result in a heating saving and where the repair is accompanied by a warranty for one or two years; or

(c)the replacement of a qualifying boiler which will result in a heating saving.

(4) A heating qualifying action must be carried out—

(a)by a person of appropriate skill and experience;

(b)after 30th September 2012; and

(c)in accordance with the Publicly Available Specification where the installation is referred to in the Specification.

(5) No more than 5% of a supplier’s total home heating cost reduction obligation can be achieved by the repair of a qualifying boiler.

Notifications of qualifying actions and adjoining installations_I16

^F4116.—(1) ..., a supplier, other than a new supplier, must, by the end of February 2013, notify the Administrator in writing of each qualifying action and adjoining installation completed in the period beginning with 1st October 2012 and ending with 31st January 2013.

(2)[^F42 Except in respect of a qualifying action to which paragraph (2A) applies^F42] , a supplier must by the end of each relevant calendar month notify the Administrator in writing of each qualifying action and adjoining installation completed in the calendar month immediately prior to the calendar month in which the notification is required to be made in accordance with this paragraph.

[^F43 (2A) A supplier must, by the end of the calendar month after the month in which the second amending Order comes into force, notify the Administrator in writing of each qualifying action which—

(a)is completed in the period starting with 1st April 2014 and ending at the end of the calendar month in which the second amending Order comes into force; and

(b)is to be credited towards its total carbon emissions reduction obligation or its total carbon saving community obligation.^F43]

(3) A notification under [^F44paragraph (1), (2) or (2A)^F44] must—

(a)identify which obligation the qualifying action or adjoining installation is intended to be credited against; and

(b)include, as appropriate, the carbon or cost saving for each qualifying action or adjoining installation.

^F45(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) A notification of an adjoining installation must include an identification of the areas A and B as defined in article 14(1).

^F46(6) ... A supplier must ensure that the carbon saving for a qualifying action or adjoining installation notified under paragraph (1) or (2) is calculated—

(a)by determining the saving in accordance with—

(i)the Standard Assessment Procedure; or

(ii)the Reduced Data Standard Assessment Procedure,

^F47and reducing that saving by the relevant in-use factor; ...

[^F48 (aa)in accordance with the following formula—

(b)in accordance with an appropriate methodology for calculating the savings approved by the Administrator under article 18.

^F49(7) ... A supplier must ensure that the cost saving for a heating qualifying action notified under paragraph (1) or (2) is calculated—

(a)except for the repair or replacement of a qualifying boiler, in accordance with—

(i)the Standard Assessment Procedure[^F50 or the Standard Assessment Procedure 2012^F50] ;

(ii)the Reduced Data Standard Assessment Procedure[^F51 or RdSAP 2012^F51] ; or

(iii)an appropriate methodology for calculating the savings approved by the Administrator under article 18; or

(b)in the case of the repair or replacement of a qualifying boiler, in accordance with article 17.

^F52(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(9) Except where [^F53article 12(6) or (6A)^F53] applies, a qualifying action is completed when its installation is complete.

(10) A supplier may apply to the Administrator for a completed qualifying action or completed adjoining installation to be notified after the date required by paragraph (1) or (2).

(11) An application under paragraph (10) must provide details of why a supplier is seeking an extension of time to notify the completed qualifying action or adjoining installation

(12) The Administrator may extend the period for notifying a qualifying action or adjoining installation which has been completed for such period as it thinks fit provided that—

(a)the extension period sought is no longer than one month after the date notification is required under paragraph (1) or (2); and

(b)the reason for the application is one other than an administrative oversight on the part of the supplier.

(13) A notification under this article must include such information relating to a qualifying action as the Administrator may from time to require.

[^F54 (14) In this article—

“carbon dioxide equivalent saving” means, in respect of a measure, the amount in tonnes of carbon dioxide equivalent that is expected to be saved over the lifetime of the measure;

“international carbon reporting practice” has the meaning given by section 94(1) of the Climate Change Act 2008 ;

“relevant calendar month” means—

“tonne of carbon dioxide equivalent” means—

Determining savings for a qualifying boiler repair and replacement_I17

17.—(1) The cost saving for the repair or replacement of a qualifying boiler must be determined in accordance with the following formula—

(2) In paragraph (1)—

“A” means the cost of heating the premises (“P”) where the repaired or replaced boiler is situated and, where applicable, heating water at P as determined in accordance with—

where the calculation is based on the absence of a working heating system in P;

“B” means the cost of heating P and, where applicable, heating water at P using, as applicable, the boiler that was repaired or the replacement boiler;

“N” means—

Approval of an appropriate methodology for carbon saving or cost saving_I18

18. —(1) For the purposes of determining the carbon or cost saving to be attributed to a qualifying action, adjoining installation or excess action, a supplier may apply to the Administrator to approve a methodology other than [^F57 the prescribed methodologies ^F57] (“an appropriate methodology”).

(2) Where the action to which paragraph (1) relates is a qualifying action, adjoining installation or excess action, an application under that paragraph must be made prior to the carrying out of the action.

(3) The Administrator may approve an appropriate methodology if it is satisfied that—

(a)[^F58 the prescribed methodologies^F58] do not contain a methodology for determining the savings associated with the action for which a determination is required; and

(b)in cases where the methodology is to be used to determine a carbon saving, it makes provision for the likely performance of measures once they are installed in domestic premises.

(4) The Administrator must notify a supplier of its decision under this article.

[^F59 (5) In this article, “the prescribed methodologies” means the Standard Assessment Procedure, the Standard Assessment Procedure 2012, the Reduced Data Standard Assessment Procedure and RdSAP 2012. ^F59]

Determining savings for qualifying actions_I19

19.—(1) To determine whether a supplier has achieved its—

(a)total carbon emissions reduction obligation;

(b)total carbon saving community obligation; or

(c)total home heating cost reduction obligation,

the Administrator must attribute a carbon or cost saving, as applicable, to each qualifying action notified by a supplier under article 16.

(2) The Administrator must attribute to a qualifying action—

(a)where the Administrator is satisfied that the supplier has correctly calculated the carbon or cost saving, as applicable, the carbon or cost saving notified by the supplier; or

(b)where the Administrator is not satisfied that the carbon or cost saving notified to be correctly calculated, the carbon or cost saving, as applicable, which the Administrator considers would have been determined for the action had it been accurately calculated.

(3) The Administrator must notify a supplier of the saving it has attributed to a qualifying action notified by a supplier.

[^F60Determining the qualifying CERO achievement for a supplier which is not a group company

19A. —(1) This article applies to a supplier (“S”) which is not a group company on 30th April 2015.

(2) The Administrator must calculate S’s qualifying CERO achievement in accordance with paragraph (4).

(3) The calculation in paragraph (2) must be carried out—

(a)if by 30th April 2015 S has not made an application under article 20, after 30th April 2015;

(b)if by 30th April 2015 S has made one or more applications under article 20, after the Administrator has decided whether to approve, or not to approve, those applications.

(4) S’s qualifying CERO achievement is—

(5) The Administrator must notify S of its qualifying CERO achievement.

(6) In this article—

“eligible CERO action” means a carbon qualifying action—

“relevant carbon saving”, in relation to an eligible CERO action, means the carbon saving which the Administrator has attributed to that action under article 19.

Attributing an uplift to certain eligible CERO actions

19B.—(1) This article applies where the Administrator has notified S that it has a qualifying CERO achievement that is greater than zero.

(2) S may, by no later than fifteen working days after the Administrator has notified S of its qualifying CERO achievement, nominate to the Administrator eligible CERO actions which have relevant carbon savings which, in sum total, do not exceed S’s qualifying CERO achievement, which it wishes to be attributed with an uplift.

(3) If S does not make a nomination under paragraph (2), the Administrator must determine which eligible CERO actions are to be attributed with an uplift, selecting the most recently installed eligible CERO actions which have relevant carbon savings which, in sum total, do not exceed S’s qualifying CERO achievement.

(4) The Administrator must attribute an uplift, in lifetime tonnes of carbon dioxide, calculated in accordance with paragraph (5), to eligible CERO actions which—

(a)are nominated or selected in accordance with paragraph (2) or (3), as applicable; and

(b)the relevant carbon savings of which, in sum total, do not exceed S’s qualifying CERO achievement.

(5) The uplift to be attributed to an eligible CERO action under paragraph (4) is—

where “A” is the relevant carbon saving for that action.

(6) The contribution that an eligible CERO action makes towards S’s total carbon emissions reduction obligation is the sum total of—

(a)the relevant carbon saving for that action; and

(b)the uplift, if any, calculated for that action under paragraph (5).

(7) The Administrator must notify S, by no later than 30th September 2015, of—

(a)the eligible CERO actions which have been attributed with an uplift under paragraph (4); and

(b)the contribution that each eligible CERO action identified under sub-paragraph (a) has made towards S’s total carbon emissions reduction obligation.

(8) In this article—

“eligible CERO action” has the meaning given in article 19A;

“qualifying CERO achievement”, in relation to S, is the amount calculated for S under article 19A(4);

“relevant carbon saving” has the meaning given in article 19A;

“S” has the meaning given in article 19A.

Determining the group qualifying CERO achievement for suppliers which are members of a group of companies

19C.—(1) This article applies to suppliers which are members of a group of companies on 30th April 2015.

(2) The Administrator must calculate the group of companies’ (“G’s”) group qualifying CERO achievement in accordance with paragraph (4).

(3) The calculation in paragraph (4) must be carried out—

(a)if by 30th April 2015 no relevant transfer application has been made, after 30th April 2015;

(b)if by 30th April 2015 one or more relevant transfer applications have been made, after the Administrator has decided whether to approve, or not to approve, those applications.

(4) G’s group qualifying CERO achievement is—

(5) The Administrator must notify the suppliers which are members of G of G’s group qualifying CERO achievement.

(6) In this article—

“eligible group CERO action” means a carbon qualifying action—

“relevant carbon saving”, in relation to an eligible group CERO action, means the carbon saving which the Administrator has attributed to that action under article 19;

“relevant transfer application” means an application which is made by a supplier which is a member of G under article 20.

Attributing an uplift to certain eligible group CERO actions

19D.—(1) This article applies where the Administrator has notified suppliers which are members of G that G has a group qualifying CERO achievement which is greater than zero.

(2) One or more suppliers which are members of G may, by no later than fifteen working days after the date on which all suppliers which are members of G have been notified by the Administrator of their qualifying CERO achievement, nominate to the Administrator eligible group CERO actions, with relevant carbon savings which in sum total do not exceed G’s group qualifying CERO achievement, which they wish to be attributed with an uplift.

(3) Only one nomination may be made in respect of G under paragraph (2).

(4) If no nomination is made under paragraph (2), the Administrator must determine which eligible group CERO actions are to be attributed with an uplift, selecting the most recently installed eligible group CERO actions which have relevant carbon savings which, in sum total, do not exceed G’s qualifying CERO achievement.

(5) The Administrator must attribute an uplift, in lifetime tonnes of carbon dioxide, calculated in accordance with paragraph (6), to eligible group CERO actions which—

(a)are nominated or selected in accordance with paragraph (2) or (4), as applicable; and

(b)the relevant carbon savings of which, in sum total, do not exceed G’s group qualifying CERO achievement.

(6) The uplift to be attributed to an eligible group CERO action under paragraph (5) is—

where “A” is the relevant carbon saving for that action.

(7) The contribution that an eligible group CERO action makes towards a supplier’s total carbon emissions reduction obligation is the sum total of—

(a)the relevant carbon saving for that action; and

(b)the uplift, if any, calculated for that action under paragraph (6).

(8) The Administrator must notify the suppliers which are members of G, by no later than 30th September 2015, of—

(a)the eligible group CERO actions which have been attributed with an uplift under paragraph (5); and

(b)the contribution that each eligible group CERO action identified under sub-paragraph (a) has made towards a supplier’s total carbon emissions reduction obligation.

(9) In this article—

“eligible group CERO action” has the meaning given in article 19C;

“G” has the meaning given in article 19C;

“qualifying group CERO achievement”, in relation to G, is the amount calculated for G under article 19C(4);

“relevant carbon saving” has the meaning given in article 19C. ^F60]

Transfers_I20

20. —(1) A qualifying action achieved by a supplier (“A”) may be regarded as achieved by another supplier (“B”) (“a transfer”) if that transfer is approved by the Administrator.

(2) A and B must—

(a)apply for approval in writing to the Administrator by [^F6130th April^F61] 2015;

(b)provide to the Administrator such information, including the number and type of qualifying actions intended to be transferred, as the Administrator may reasonably require; and

(c)indicate whether B intends the qualifying action to be credited towards B’s—

(i)total carbon emissions reduction obligation;

(ii)total carbon saving community obligation; or

(iii)total home heating cost reduction obligation.

(3) The Administrator must approve a transfer unless it has reasonable grounds to believe that, if the transfer were approved, A would not be able to achieve its—

(a)total carbon emissions reduction obligation;

(b)total carbon saving community obligation; or

(c)total home heating cost reduction obligation.

(4) If the Administrator decides not to approve a transfer under paragraph (3) it must notify A and B of the reasons for that decision.

(5) If a transfer is approved, the qualifying action is treated as achieved by B and not A.

Excess Actions_I21

21.—(1) Not later than 1st June 2013 a supplier may apply to the Administrator in writing to credit towards its—

(a)total carbon emissions reduction obligation;

(b)total carbon saving community obligation; or

(c)total home heating cost reduction obligation,

the carbon saving or cost saving achieved by an excess action.

(2) An application under this article must—

(a)give details of the measure which the supplier considers constitutes an excess action;

(b)indicate whether the supplier intends the excess action to be credited towards its—

(i)total carbon emissions reduction obligation;

(ii)total carbon saving community obligation; or

(iii)home heating cost reduction target; and

(c)provide a calculation of the carbon saving or cost saving of the excess action.

(3) An excess action is a measure which satisfies paragraph (4) or (5).

(4) A measure satisfies this paragraph where it is approved and installed under the 2008 Order and—

(a) is not required by the supplier to meet its carbon emissions reduction obligation under that Order where “carbon emissions reduction obligation” has the meaning given in the 2008 Order;

(b)was installed after 1st January 2012;

(c)if installed between 1st October 2012 and 31st December 2012, was installed by a person of appropriate skill and experience and in accordance with the Publicly Available Specification where the installation is referred to in the Specification; and

(d)if it is intended to contribute towards—

(i)the carbon emissions reduction obligation, meets one of the requirements in paragraph (6);

(ii)the carbon saving community obligation, meets the requirement in paragraph (7);

(iii)the home heating cost reduction obligation, meets the requirement of paragraph (8).

(5) A measure satisfies this paragraph where it is approved and installed under the 2009 Order and—

(a) is not required by the supplier to meet its carbon emissions reduction obligation under that Order where “carbon emissions reduction obligation” has the meaning given in the 2009 Order;

(b)was installed after 1st January 2012;

(c)if installed between 1st October 2012 and 31st December 2012, was installed by a person of appropriate skill and experience and in accordance with the Publicly Available Specification where the installation is referred to in the Specification; and

(d)if it is intended to contribute towards the home heating cost reduction obligation, was installed to a householder.

(6) The requirements referred to in paragraph (4)(d)(i) are that the measure is—

(a)installed to a member of the super priority group; or

(b)solid wall insulation installed to a domestic energy user.

(7) The requirement referred to in paragraph (4)(d)(ii) is that the measure was promoted and installed in an area of low income.

(8) The requirement referred to in paragraph (4)(d)(iii) is that the measure is promoted and installed to a householder who was a member of the super priority group.

[^F62 (9) Subject to paragraph (9A), the Administrator must approve the application if it is satisfied that the measure to which the application relates is an excess action.

(9A) The Administrator must not approve an application in respect of a measure which was approved and installed under the 2008 Order if it has received an application under article 21ZA from—

(a) the supplier (“A”); or

(b)a supplier who was a member of the same group of companies as A on 31st December 2012.

(9B) An excess action which is credited against a supplier’s total carbon saving community obligation may be credited against the supplier’s rural requirement if the Administrator is satisfied that the excess action was promoted to a member of the super priority group living in a rural area.^F62]

(10) In this article—

“2008 Order” means the Electricity and Gas (Carbon Emissions Reduction) Order 2008 ( 17 );

“2009 Order” means the Electricity and Gas (Community Energy Saving Programme) Order 2009 ( 18 );

“carbon saving”, in relation to an excess action, means the lifetime tones of carbon dioxide the action will save where that saving is calculated—

“cost saving”, in relation to an excess action, means—

where that saving is calculated in accordance with a relevant methodology;

“relevant methodology” means—

“super priority group” has the same meaning as under the 2008 Order.

[^F63Group application for reallocation and carry forward of excess CERT actions

21ZA. —(1) Two or more suppliers (“applicant suppliers”) who were members of the same group of companies (“G”) on 31st December 2012 may apply to the Administrator to approve—

(a)one or more relevant CERT actions as group excess actions; and

(b)as a credit towards a relevant obligation of an applicant supplier the carbon or cost saving achieved by a group excess action.

(2) A relevant CERT action is a group excess action if—

(a)that relevant CERT action was achieved by a relevant company; and

(b)had CERT actions been reallocated between the relevant companies in the manner described in the application under paragraph (1), that action would not have been required for all the relevant companies to have met their CERT obligations.

(3) No credit of a group excess action may be approved by the Administrator towards a supplier’s—

(a)total carbon emissions reduction obligation, unless the group excess action was—

(i)installed to a member of the super priority group; or

(ii)solid wall insulation installed to a domestic energy user;

(b)total carbon saving community obligation, unless the group excess action was promoted and installed in an area of low income;

(c)total home heating cost reduction obligation, unless the group excess action was promoted and installed to a householder who was a member of the super priority group.

(4) An application under paragraph (1) must—

(a)be made no later than ten working days after the second amending Order comes into force;

(b)describe the reallocation of CERT actions between the relevant companies;

(c)identify the relevant CERT actions which are considered group excess actions; and

(d)state, in respect of each such group excess action—

(i)to which applicant supplier; and

(ii)to which of that supplier’s relevant obligations,

the carbon or cost saving of that action is to be credited.

(5) Subject to paragraph (3), the Administrator must approve the credit of group excess actions as set out in an application if it is satisfied that—

(a)those actions are group excess actions; and

(b)each relevant company consents to the credit.

(6) A group excess action which is credited against a supplier’s total carbon saving community obligation may be credited against the supplier’s rural requirement if the Administrator is satisfied that the group excess action was promoted to a member of the super priority group living in a rural area.

(7) Only one application may be made under paragraph (1) in respect of G.

(8) No application may be made under paragraph (1) where the Administrator has approved an application which was made under article 21—

(a)by a supplier which was a member of G on 31st December 2012; and

(b)in respect of a CERT action.

(9) In this article—

“ 2008 Order ” means the Electricity and Gas (Carbon Emissions Reduction) Order 2008 ;

“carbon saving”, in relation to a CERT action identified under paragraph (4)(c), has the same meaning as that given in relation to excess actions in article 21(10);

“CERT action” means a measure which was installed and approved under the 2008 Order ;

“CERT obligations” means the following obligations under the 2008 Order —

“cost saving”, in relation to a CERT action identified under paragraph (4)(c), has the same meaning as that given in relation to excess actions in article 21(10);

“relevant CERT action” means a CERT action which—

“relevant company” means a company which was—

“relevant obligation” means a supplier’s—

“super priority group” has the same meaning as in the 2008 Order . ^F63]

[^F64Transfers of excess actions

21A.—(1) Where—

(a) a supplier (“C”) has achieved an excess action [^F65 or group excess action ^F65] (“E”); and

(b)the Administrator has approved an application made in respect of E under article 21(9) [^F66 or article 21ZA(5), as applicable^F66] ,

E may be regarded as achieved by another supplier (“D”) (“a transfer”) if that transfer is approved by the Administrator in accordance with this article.

(2) C and D must—

(a)apply for approval in writing to the Administrator by 30th April 2015;

(b)provide to the Administrator such information, including the number and type of excess actions intended to be transferred, as the Administrator may reasonably require; and

(c)indicate whether D intends E to be credited towards D’s—

(i)total carbon emissions reduction obligation;

(ii)total carbon saving community obligation; or

(iii)total home heating cost reduction obligation.

(3) The Administrator must approve a transfer—

(a)in a case where D has indicated that it intends E to be credited towards a different obligation from the one notified under article 21(2)(b) [^F67 or article 21ZA(4)(d)(ii)^F67] , if the Administrator is satisfied that E meets any applicable requirement in article 21(4)(d) or (5)(d) [^F68 or article 21ZA(3)^F68] in respect of that different obligation; and

(b)unless it has reasonable grounds to believe that, if the transfer were approved, C would not be able to achieve its—

(i)total carbon emissions reduction obligation;

(ii)total carbon saving community obligation; or

(iii)total home heating cost reduction obligation.

(4) If the Administrator decides not to approve a transfer under paragraph (3) it must notify C and D of the reasons for that decision.

(5) If a transfer is approved, E is treated as achieved by D and not C.^F64]

PART 5 Enforcement

Final determination and reporting_I22

22.—(1) The Administrator must determine whether a supplier has achieved its—

(a)total carbon emissions reduction obligation;

(b)total carbon saving community obligation; and

(c)total home heating cost reduction obligation.

(2) A supplier may apply to the Administrator, in writing, by [^F69 30th April ^F69] 2015 for a qualifying action (“Q”) or an excess action[^F70 or group excess action ^F70] (“E”) to be credited against a different obligation from [^F71 the one it is credited against at the time the application under this paragraph is made ^F71] .

(3) The Authority must approve an application—

[^F72 (a)if it is satisfied, as applicable, that—

(i)Q is a qualifying action in respect of that different obligation; or

(ii)E meets any applicable requirement in article 21(4)(d) or (5)(d) [^F73 or article 21ZA(3)^F73] in respect of that different obligation;^F72]

(b)unless it has reasonable grounds to believe that if the application was approved A would not be able to achieve its—

(i)total carbon emissions reduction obligation;

(ii)total carbon saving community obligation; or

(iii)total home heating cost reduction obligation.

(4) The Administrator must notify the supplier of its determination under paragraph (1) no later than [^F7430th September^F74] 2015.

(5) The Administrator must submit to the Secretary of State a report each month, commencing in March 2013, setting out the progress which suppliers have made towards meeting their obligations under this Order.

(6) Not later than [^F7530th September 2015^F75] the Administrator must submit to the Secretary of State a report setting out whether suppliers achieved the—

(a)overall carbon emissions reduction target;

(b)overall carbon saving community target;

(c)overall home heating cost reduction target.

Information from suppliers_I23

23.—(1) The Administrator may require a supplier—

(a)to provide it with specified information, or information of a specified nature, about a supplier’s proposals for complying with any requirement under this Order;

(b)to produce to it evidence of a specified kind demonstrating it is complying with, or that it has complied with, any requirement under this Order.

(2) A supplier must provide to the Administrator such information as the Administrator may require relating to the cost to the supplier of achieving its obligations under this Order.

Enforcement_I24

24. A requirement placed on a supplier under this Order [^F76, other than the requirement in article 12(1),^F76] is a relevant requirement for the purpose of—

(a)Part I of the Electricity Act 1989; and

(b)Part I of the Gas Act 1986.

Article 2

SCHEDULE 1 AFFORDABLE WARMTH GROUP ELIGIBILITY _I25,I26

1. The benefits referred to in the definition of affordable warmth group in article 2 are—

(a) child tax credit( 19 ) and has a relevant income of £15,860 or less (where “relevant income” has the same meaning as in Part 1 of the Tax Credits Act 2002 ( 20 ));

(b) income-related employment and support allowance(21) and—

(i) receiving a work-related activity or support component; or

(ii)[^F77 is responsible^F77] for a qualifying child; or

(iii) is in receipt of a qualifying component;

(c) income-based job seeker’s allowance(22) and—

(i)[^F78 is responsible^F78] for a qualifying child; or

(ii) is in receipt of a qualifying component;

(d) income support(23) and—

(i)[^F79 is responsible^F79] for a qualifying child; or

(ii) is in receipt of a qualifying component;

(e)^F80 state pension credit(24); ...

(f) working tax credit and has a relevant income of £15,860 or less and—

(i)[^F81 is responsible^F81] for a qualifying child; or

(ii) is in receipt of a [^F82disability^F82] or severe disability element; or

(iii) is aged 60 years or over [^F83; or

(g) universal credit and the condition as to earned income in paragraph 3 is met and—

(i) is responsible for a child or qualifying young person as determined under regulation 4 of the Universal Credit Regulations 2013; or

(ii) has limited capability for work, or limited capability for work and work-related activity, as determined under Part 5 of the Universal Credit Regulations 2013; or

(iii) is in receipt of a disability living allowance under section 71 of the Social Security Contributions and Benefits Act 1992; or

(iv) is in receipt of a personal independence payment under Part 4 of the Welfare Reform Act 2012.^F83]

2. In paragraph 1—

(a) “qualifying child” means, in relation to a person in receipt of an allowance, income support or working tax credit, a child who ordinarily resides with that person and who—

(i) is under the age of 16; or

[^F84 (ii) is—

(aa) 16 or over but under the age of 20; and

(bb) in full-time education (other than higher education within the meaning of section 579(1) of the Education Act 1996) or approved training (as defined in regulation 2 of the Child Tax Credit Regulations 2002);^F84]

(b) “qualifying component” means—

(i) child tax credit which includes a disability or severe disability element;

(ii) a disabled child premium;

(iii) a disability premium, enhanced disability premium or severe disability premium; or

(iv) a pensioner premium, higher pensioner premium or enhanced pensioner premium;

[^F85 (c) whether a person is responsible for a qualifying child is to be determined in accordance with regulation 3 of the Child Tax Credit Regulations 2002.^F85]

[^F86 3.—(1) Where the award of universal credit is—

(a) to a single claimant, the condition as to earned income is that, in any of the twelve preceding assessment periods, the claimant has received earned income which does not exceed £1,167; or

(b) to joint claimants, the condition as to earned income is that, in any of the twelve preceding assessment periods, the combined earned income received by the claimants does not exceed £1,167.

(2) In this paragraph—

(a) “assessment period”;

(b) “earned income”;

(c) “joint claimants”; and

(d) “single claimant”,

are to be interpreted in accordance with the Welfare Reform Act 2012 and any subordinate legislation made under that Act.^F86]

Article 2

SCHEDULE 2 MEANING OF HOUSEHOLDER _I27,I28

1.—(1) In relation to England and Wales, householder means a person who is, in relation to domestic premises,—

(a) a freeholder;

(b) a leaseholder with a term of 21 years or more unexpired at the time a supplier offers to carry out an action;

(c) a tenant, other than a tenant within sub-paragraph (f) or to whom sub-paragraph (2) applies;

(d) a holder of a licence to occupy, which meets the conditions in paragraph 12(a) and (b) of Schedule 1 to the Housing Act 1985(25);

(e) a holder of an assured agricultural occupancy under Part 1 of the Housing Act 1988(26); or

(f) a protected tenant under section 1, Part 1 of the Rent Act 1977(27).

(2) This sub-paragraph applies,—

(a) in relation to premises in England, to a tenant of low cost rental accommodation; and

(b) in relation to premises in Wales, to—

(i) a tenant of a dwelling-house let under Part IV of the Housing Act 1985(28);

(ii) a tenant of a dwelling let by a landlord registered as a social landlord under Chapter 1 of Part 1 of the Housing Act 1996(29); or

(iii) a tenant of a local authority, other than under Part IV of the Housing Act 1985.

(3) In this paragraph—

(a) “low cost rental accommodation” has the same meaning as in section 69 of the Housing and Regeneration Act 2008 ( 30 );

(b) “tenant” includes a sub-tenant.

2.—(1) In relation to Scotland, householder means a person who is the owner or tenant of domestic premises.

(2) For the purposes of this paragraph—

(a) “owner” includes any person who under the Land Clauses Acts( 31 ) would be enabled to sell and convey land to promoters of an undertaking;

(b) “tenant” includes a sub-tenant and a person who—

(i) occupies a dwelling in terms of a contract of employment;

(ii) has a licence to occupy a dwelling; or

(iii) is a cottar within the meaning of section 12(5) of the Crofters (Scotland) Act 1993(32),

but excludes a tenant of a social landlord within the meaning of section 165 of the Housing (Scotland) Act 2010(33).

Article 2

SCHEDULE 3 IN-USE FACTORS _I29