See also  REC Schedules, Market Stabilisation Charge

REC Schedule 22 sets out the arrangements concerning Market Stabilisation Charges including the process for payment of the Charge and the redistribution of those payments. This schedule is mandatory for Domestic Suppliers.  

You can access this schedule with a Portal account on the Energy Market Architecture Repository (EMAR).

Market Stabilisation Obligations

The obligation to pay Market Stabilisation Charges and the methodology for calculation is included in Condition 24a both of the Gas Supply Licence and the Electricity Supply Licence.

Where a Gaining Supplier is obliged to pay a Market Stabilisation Charge this is made to RECCo who then make this payment to the Losing Supplier following the process as set out in REC Schedule 22.

Failure to Pay

Clause 6 of the Schedule defines the steps that RECCo will take if an Energy Supplier does not pay an amount due including issuing a late payment notice, notifying the REC Performance Assurance Board and recording an Event of Default.