The Clean Heat Market Mechanism Regulations 2025

Scheme participants

9.—(1) An undertaking which is not a group undertaking in relation to another undertaking is a scheme participant for a scheme year where—

(a)it is the supplier of—

(i)20,000 or more gas boilers which are the subject of a qualifying sale during the scheme year; or

(ii)1,000 or more oil boilers which are the subject of a qualifying sale during the scheme year; and

(b)subject to paragraphs (3) and (4), in relation to its last financial year which ended before the start of the scheme year, the undertaking satisfied two or more of the following requirements—

(i)its turnover was more than the amount for the time being specified in condition 1 of section 382(3) of the Companies Act 2006(1);

(ii)its balance sheet total was more than the amount for the time being specified in condition 2 of section 382(3) of the Companies Act 2006;

(iii)its number of employees was more than the number for the time being specified in condition 3 of section 382(3) of the Companies Act 2006.

(2) A group of undertakings is a scheme participant for a scheme year where—

(a)the undertakings in the group are collectively the supplier of—

(i)20,000 or more gas boilers which are the subject of a qualifying sale during the scheme year; or

(ii)1,000 or more oil boilers which are the subject of a qualifying sale during the scheme year; and

(b)subject to paragraphs (3) and (4), in relation to the last financial year of the responsible undertaking for the group which ended before the start of the scheme year, the group satisfied two or more of the following requirements—

(i)its aggregate turnover was more than the amount for the time being specified in condition 1 of section 383(4) of the Companies Act 2006(2);

(ii)its aggregate balance sheet total was more than the amount for the time being specified in condition 2 of section 383(4) of the Companies Act 2006;

(iii)its aggregate number of employees was more than the number for the time being specified in condition 3 of section 383(4) of the Companies Act 2006.

(3) Paragraph (4) applies where—

(a)an undertaking is, or is not, a scheme participant for a scheme year (the “relevant scheme year”) by virtue of satisfying, or not satisfying, two or more of the requirements in paragraph (1)(b) in relation to the relevant scheme year, or a group of undertakings is, or is not, a scheme participant for a scheme year (the “relevant scheme year”) by virtue of satisfying, or not satisfying, two or more of the requirements in paragraph (2)(b) in relation to the relevant scheme year; and

(b)in relation to a scheme year which follows the relevant scheme year, there is a change to the undertaking’s or group of undertakings’ status as satisfying, or not satisfying, two or more of the requirements in paragraph (1)(b) or (2)(b), as the case may be.

(4) Where this paragraph applies, the change referred to in paragraph (3)(b) is only treated as having effect where it occurs in relation to two consecutive scheme years.

(5) For the purposes of this regulation and regulation 10 (near-threshold suppliers)—

(a)subsections (4) to (6) of section 382 of the Companies Act 2006 apply for the purpose of interpreting the requirements in paragraph (1)(b), but are to be read as if the references to a “company” were references to an undertaking;

(b)subsections (5) and (6) of section 383 of the Companies Act 2006(3) apply for the purpose of interpreting the requirements in paragraph (2)(b), but subsection (6) is to be read as if the reference to a “company” were a reference to an undertaking;

(c)subsection (7) of section 383 of the Companies Act 2006 applies for the purpose of interpreting the requirements in paragraph (2)(b), but is to be read as if—

(i)the reference in that subsection to “each subsidiary undertaking” were a reference to each undertaking in the group of undertakings other than the responsible undertaking; and

(ii)the references in that subsection to “the parent company” were references to the responsible undertaking for the group of undertakings;

(d)“last financial year” means the last financial year for which audited accounts are available or, where audited accounts are not required, for which accounts are available;

(e)audited accounts are to be treated as being available where annual accounts have been delivered to the registrar under section 441 of the Companies Act 2006(4);

(f)“turnover” has the meaning given in section 474(1) of the Companies Act 2006(5) but is to be read as if the reference to a “company” were a reference to an undertaking;

(g)where an amount referred to in paragraph (1)(b) or (2)(b) is denominated wholly or partly in a foreign currency, the sterling equivalent is to be calculated by reference to the average exchange rate for the financial year for which the accounts are prepared.