Citation, commencement and interpretation

1. —(1) These Regulations may be cited as the Energy (Oil and Gas) Profits Levy (Energy Security Investment Mechanism) Regulations 2024 and come into force on 10th December 2024.

(2) In these Regulations, “ the 2022 Act ” means the Energy (Oil and Gas) Profits Levy Act 2022.

Meaning of the average price of oil

2. —(1) For the purposes of section 17A(1)(a) of the 2022 Act, the average price of oil in United States dollars per barrel over a reference period( 2 ) is to be calculated using the following formula, and rounded to two decimal places on an arithmetical basis—

where, “ A ” is the sum of the World Bank oil price for each month of the reference period.

(2) In this regulation, “ World Bank oil price ” means the monthly price in United States dollars per barrel of Brent Crude oil published by the World Bank in the monthly prices report entitled “World Bank Commodity Price Data (The Pink Sheet)”( 3 ) under the series description “Crude oil, UK Brent 38’ API”.

Meaning of the average price of gas

3. —(1) For the purposes of section 17A(1)(b) of the 2022 Act, the average price of gas in pounds sterling per therm over a reference period is to be calculated using the following steps—

• Step 1

  Calculate the average price of gas for each ICIS publishing day in the reference period using the formula—

  

  where—

  “ C ” is the sum of the ICIS gas price for each ICIS publishing day in the reference period, and

  “D” is the number of ICIS publishing days in the reference period.

• Step 2

  Divide the result from Step 1 by 100 to convert the unit price from pence to pounds.

• Step 3

  Round the result from Step 2 to two decimal places on an arithmetical basis.

(2) In this regulation—

“ ICIS ” means the Independent Commodity Intelligence Services, a business division of RELX Group plc (company number 00077536);

“ ICIS gas price ” means the daily price for gas in GB pence per therm published by ICIS in the series described as “National Balancing Point (NBP) Price Assessment Day-Ahead Bid/Offer Range Daily (Bid): GBp/th”( 4 ); and

“ ICIS publishing day ” means any day on which ICIS publishes the ICIS gas price.