The Contracts for Difference (Electricity Supplier Obligations) Regulations 2014 establish a mechanism to allow the CFD Counterparty to raise funds from all licensed electricity suppliers in Great Britain to pay for the liabilities that it has to make for payments to electricity generators under the Contracts for Difference scheme, and to return money to suppliers where appropriate. The Regulations set out arrangements for the CFD Counterparty to hold sums in reserve and to cover its losses in the situation of default by an electricity supplier. The Regulations also set out the arrangements for collection of a levy from all licensed electricity suppliers to pay for the CFD Counterparty’s operating costs.
