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(1) These Regulations may be cited as the Electricity Capacity Regulations 2014.
(2) These Regulations, apart from Part 11 (capacity market rules) and regulation 88 (repeal), come into force on the day after the day on which they are made.
(3) Part 11 comes into force on the day after the day on which the results of the first capacity auction held under Part 4 ... are published under regulation 25(1)(c).
(4) Regulation 88 comes into force on 1st January 2015.
(1) In these Regulations—
“ the Act ” means the Energy Act 2013;
“ EA 1989 ” means the Electricity Act 1989 ;
“ the Rules ” means the Capacity Market Rules 2014 ;
“the Supplier Payment Regulations ” means the Electricity Capacity (Supplier Payment etc. ) Regulations 2014;
“active energy” and “active power” have the meanings given in the Rules;
“ administrative parties ” means—
the Secretary of State;
the Authority;
the Delivery Body; and
the Settlement Body;
“affected person” is to be interpreted in accordance with regulation 68(2);
“ annual penalty cap ”, in relation to a capacity committed CMU and a delivery year, means the maximum amount of capacity provider penalty charges that the capacity provider may be liable to pay in respect of that CMU for that delivery year;
“ applicant ” means a person who, in accordance with capacity market rules, has submitted or is entitled to submit an application for prequalification to bid in a capacity auction in respect of a CMU;
“ auction clearing price ” means, in relation to a capacity auction, the price per MW which, subject to—
sub-paragraphs (b) and (c) of regulation 30(4); and
any provision for adjustment of capacity payments for inflation,
is determined by the capacity auction to be the price at which capacity payments are payable in respect of capacity committed CMUs awarded a capacity obligation in that capacity auction;
“ auctioneer ” has the meaning given in regulation 24(2);
“ auction guidelines ” has the meaning given in regulation 21;
“ auction parameters ” has the meaning given in regulation 11;
“ auction window ” means a period in which a capacity auction is to be held, being ... a period starting on 1st September and ending on the following 31st July;
“ auxiliary load ” means, in relation to a generating CMU or a generating unit, the total amount of electricity used by that unit for purposes directly related to its operation (including for fuel handling, fuel preparation, maintenance and the pumping of water), whether or not that electricity is generated by the unit or used while the unit is generating electricity;
“ the Balancing and Settlement Code ” means the code for governance of electricity balancing and settlement in Great Britain which is maintained in accordance with the conditions of licences granted under section 6(1) of the Electricity Act 1989 ;
“ base period ” means a period starting on 1st October and ending on the following 30th April, to be used in calculating capacity payments for the purpose of adjusting for inflation the capacity cleared price applying to a capacity committed CMU, where paragraph 3 of Schedule 1 provides for such an adjustment to be made;
“ bidder ” means a person bidding in a capacity auction for a capacity obligation in respect of a CMU;
“ bidding round ” means a round of bidding in a capacity auction;
“ capacity ” means an amount of electrical generating capacity , interconnected capacity or DSR capacity, expressed in MW unless specified otherwise;
“ capacity agreement ” has the meaning given in regulation 30(1);
“ capacity agreement notice ” means a notice issued by the Delivery Body to a capacity provider under capacity market rules, containing data about a capacity agreement;
“ capacity auction ” means an auction under Part 4;
“ capacity cleared price ” has the meaning given in regulation 30(3) and (4);
“ capacity committed CMU ”, in relation to a delivery year, means a CMU that is identified in the capacity market register as being subject to a capacity obligation for that delivery year;
“ the capacity market ” means the scheme established by these Regulations and capacity market rules;
“capacity market notice” has the meaning given in the Rules;
“ capacity market register ” means the register maintained by the Delivery Body in accordance with regulation 31;
...
“ capacity obligation ” means an obligation awarded pursuant to a capacity auction, applying for one or more delivery years, to provide a determined amount of capacity when required to do so in accordance with capacity market rules (and, unless the context otherwise requires, includes a part of a capacity obligation) ;
“ capacity payment ” means a payment to a capacity provider under these Regulations for its commitment to meet a capacity obligation during a delivery year;
“capacity provider” means the holder of—
a capacity agreement, or
a transferred part;
“ capacity provider penalty charge ” means an amount payable by a capacity provider under regulation 41;
“ capacity year ” means a period of one year starting on 1st October and ending on the following 30th September;
“ CCS CFD ” has the meaning given in regulation 34A(4);
“ CCS CFD transfer notice ” has the meaning given in regulation 34A(4);
“ CCS CFD transfer refusal notice ” has the meaning given in the Rules;
“ a CFD ” means a contract for difference under Chapter 2 of Part 2 of the Act or an investment contract under Schedule 2 to the Act ;
“ CFD counterparty ” means a person designated as such under section 7 of the Act;
“ CMU ” means—
a generating CMU; ...
a demand side response CMU; or
an interconnector CMU;
“ commissioned ”, in relation to a generating unit, means that—
such procedures and tests have been completed as constitute, at the time they are undertaken, industry standards and practices for commissioning a generating unit of that type such that it is capable of operation at its connection capacity; and
the unit has not subsequently been decommissioned;
“commissioned”, in relation to an electricity interconnector, means that—
such procedures and tests have been completed as constitute, at the time they are undertaken, industry standards and practices for commissioning an electricity interconnector of that type such that it is capable of operation at its connection capacity; and
the electricity interconnector has not subsequently been decommissioned;
“ the Connection and Use of System Code ” means the code with that name for governance of connection to, and use of, the GB transmission system which is maintained in accordance with the conditions of licences granted under section 6(1) of EA 1989 ;
“ connection capacity ”, in relation to an interconnector CMU, a generating CMU or a generating unit forming part of a CMU, means the amount which in accordance with capacity market rules is declared in an application for prequalification as the connection capacity of that interconnector CMU, generating CMU or generating unit;
“ the court ” has the meaning given in regulation 72(2);
“ CPI ” means the UK Consumer Prices Index (All Items) published monthly by the Office for National Statistics or, if such index ceases to be published, such other index as may replace it;
“ credit cover ” has the meaning given in regulation 53;
“ customer ” means a person to whom electrical power is provided (whether or not that is the same person as the person who provides the electrical power);
“ decommissioned ”, in relation to a generating unit, means that the generating unit has permanently been physically disconnected from the total system, or from equipment used to provide on-site supply;
“decommissioned”, in relation to an electricity interconnector, means that the interconnector has permanently been physically disconnected from the GB transmission system;
“ Delivery Body ” means—
subject to paragraph (b), the national system operator; or
if the national system operator's functions under Chapter 3 of Part 2 of the Act have been transferred to an alternative delivery body by an order under section 46 of the Act, and to the extent of the functions that have been transferred, that body;
“delivery year”—
in relation to a capacity auction, means the capacity year—
for which each one year capacity obligation awarded as a result of that capacity auction has or will have effect; and
which is the first year of the period for which each multi-year capacity obligation awarded as a result of that capacity auction has effect;
in relation to a capacity obligation or a capacity agreement, means a capacity year in which that capacity obligation, or the capacity obligation imposed by that capacity agreement, has effect; and
otherwise, means any capacity year in which one or more capacity obligations has or will have effect;
“ demand curve ”, in relation to a capacity auction, means a specification (which may be in the form of a curve on a graph) of how the total amount of capacity for which capacity agreements are to be issued is to vary depending on the auction clearing price;
“ demand side response ” means the activity of reducing the metered volume of imported electricity of one or more customers below a baseline, by a means other than a permanent reduction in electricity use;
“ demand side response CMU ” has the meaning given in regulation 5;
“ demand side response CMU component ” means—
a DSR customer's consumption of electricity as measured by a single half hourly meter; or
a permitted on-site generating unit,
which forms part of the means by which a DSR provider commits to provide capacity as described in regulation 5(1);
“ de-rated capacity ” has the meaning given in the Rules;
“ de-rating factor ” has the meaning given in the Rules;
“ distribution CMU ” means a generating CMU consisting of one or more generating units which export electricity to a distribution network;
“ distribution connection agreement ” has the meaning given in the Rules;
“ distribution network ” means a distribution network in Great Britain operated under a licence granted pursuant to section 6(1)(c) of EA 1989 ;
“ distribution network operator ” means a person who operates a distribution network;
...
“ DSR capacity ” means—
in the case of a proven demand side response CMU, its proven DSR capacity; and
in the case of an unproven demand side response CMU, its unproven DSR capacity,
as determined in accordance with capacity market rules;
“ DSR customer ” has the meaning given in regulation 5(2);
“ DSR provider ” has the meaning given in regulation 5(1);
“ DSR test ” has the meaning given in the Rules;
“ DSR test certificate ” has the meaning given in the Rules;
...
“ electricity capacity report ” means a report by the Delivery Body under regulation 7;
“ electricity interconnector ” has the meaning given in section 4(3E) of EA 1989 ;
“ electricity supplier ” has the meaning given in regulation 3(2);
“ export ” means the flow of electricity from a generating unit on to a distribution network or the GB transmission system, or to an on-site consumer;
“ financial commitment milestone ” has the meaning given in the Rules;
“ GB transmission system ” means the national transmission system for Great Britain (and for this purpose “ transmission system ” has the same meaning as in EA 1989 );
“ general eligibility criteria ” means the criteria in regulation 15;
“ generating CMU ” has the meaning given in regulation 4;
“ generating technology class ” has the meaning given in the Rules;
“ generating unit ” means any equipment in which electrical conductors are used or supported or of which they form part which produces electricity, including such equipment which produces electricity from storage;
“ the Grid Code ” means the code with that name specifying technical requirements for connection to, and use of, the GB transmission system which is maintained in accordance with the conditions of licences granted under section 6(1) of EA 1989 ;
“ group of companies ” means a company and all the subsidiaries of that company within the meaning of section 1159 of the Companies Act 2006 ;
“half hourly meter” means a meter which measures import or export of electricity (or, in the case of an electricity interconnector, measures net output)—
on a half hourly basis; or
on a basis which enables meter readings to be aligned with a settlement period;
“ import ” means the flow of electricity from a distribution network or the GB transmission system or a permitted on-site generating unit to any building, facility, installation, plant or equipment which consumes electricity;
“ industry code ” means—
the Balancing and Settlement Code;
the Connection and Use of System Code; or
the Grid Code;
“ insolvent ”, in relation to a capacity provider, means that—
a liquidator, trustee in bankruptcy, judicial custodian, compulsory manager, receiver, administrative receiver, administrator or similar officer (in Great Britain or in any other jurisdiction) has been appointed in respect of the capacity provider or any of its assets; or
a court in Great Britain has with respect to the capacity provider—
made a judgment of insolvency or bankruptcy;
entered an order for relief; or
made an order for its winding-up or liquidation,
or an analogous step has been taken by a court in any other jurisdiction, and such judgment, order or other analogous step has not been dismissed, stayed or discharged;
“ interconnected capacity ” means electricity provided to the GB transmission system through an electricity interconnector;
“interconnector CMU” has the meaning given in regulation 5A;
“ low emissions determination ” has the meaning given in the Rules;
“ metered volume ” means, for a CMU, a generating unit or a demand side response CMU component and a settlement period, the net aggregate volume of active energy, measured by one or more meters, which flowed in that settlement period to or from that CMU, unit or component;
“ minimum capacity threshold ” ... has the meaning given in regulation 15;
“ monthly penalty cap ”, in relation to a capacity obligation and a month of a delivery year, means the maximum amount of capacity provider penalty charges which may be payable in respect of that capacity obligation for that month;
“ MPAN ” means a meter point administration number;
“ multi-year capacity obligation ” means a capacity obligation for a period of more than one delivery year;
“ MW ” means megawatts;
“ MWh ” means megawatt hours;
“ net output ”, in relation to a generating CMU or a generating unit, means the amount of electricity produced by the CMU or unit minus its auxiliary load;
“net output”, in relation to an interconnector CMU, means the amount of electricity transmitted through the CMU into the GB transmission system;
“ the offshore area ” means the areas comprising—
the sea adjacent to Great Britain from the low water mark to the landward baseline of the United Kingdom territorial sea;
the United Kingdom territorial sea, except that part of it which is adjacent to Northern Ireland and extends seaward for 3 miles from the landward baseline; and
the sea in any designated area within the meaning of section 1(7) of the Continental Shelf Act 1964 ;
“ on-site consumer ” means a building, facility, installation, plant or equipment which—
is on the same site, or connected to a distribution network at the same point of connection, as a generating unit; and
consumes electricity from that generating unit;
“ on-site supply ” means the supply of electricity by a generating unit to an on-site consumer;
“ permitted on-site generating unit ” means a generating unit which—
is primarily used to provide on-site supply; and
does not supply electricity to a distribution network or the GB transmission system other than in settlement periods where—
the electricity requirements of the on-site consumer are fully and exclusively met by on-site supply from the generating unit;
those requirements are less than the available capacity of the generating unit; and
neither the generating unit nor the on-site consumer imports any electricity;
“ prequalification ” means the process set out in the Rules for determining whether an applicant is eligible to bid in a capacity auction in respect of a CMU;
“ prequalification decision ” means a decision by the Delivery Body under the Rules as to whether a CMU has prequalified for a capacity auction;
“ prequalification window ” means the period specified in auction guidelines before a capacity auction during which a person wishing to apply for prequalification for the capacity auction in respect of a CMU must make an application to the Delivery Body;
“ prequalified ”, in relation to a CMU and a capacity auction, is to be interpreted in accordance with regulation 14;
“ prequalify ”, in relation to the Delivery Body, means to decide that a CMU has prequalified for a capacity auction;
“ price cap ” means, in respect of a capacity auction, the price to be used by the auctioneer in the first bidding round of the capacity auction;
...
“ price-taker ” means a prequalified CMU other than one which has, in accordance with capacity market rules, been registered as a price-maker on the capacity market register;
“ price-taker threshold ”, in relation to a capacity auction, means the maximum price at which a price-taker may withdraw from the capacity auction;
“ prospective generating CMU ” means, subject to regulation 53(4), a generating CMU which consists of one or more prospective generating units;
“ prospective generating unit ” has the meaning given in regulation 4;
“prospective interconnector CMU” means an interconnector CMU within regulation 5A(1)(b);
“ proven demand side response CMU ” means a demand side response CMU in respect of which a DSR test has been carried out;
“ proven DSR capacity ” has the meaning given in the Rules;
“ relevant settlement period ” means a settlement period in respect of which—
there is a system stress event; and
a capacity market notice is in force;
“ reliability standard ” has the meaning given in regulation 6;
“ ROC ” has the same meaning as it has in the ROO;
“ ROO ” means—
in relation to England and Wales, the Renewables Obligation Order 2009 ;
in relation to Scotland, the Renewables Obligation (Scotland) Order 2009 ;
“ Settlement Body ” means the person appointed to that position under regulation 80;
“ settlement period ” means a period of 30 minutes beginning on an hour or half-hour;
“site” is to be interpreted in accordance with paragraph (2);
“ storage facility ” means a facility which consists of—
a means of converting imported electricity into a form of energy which can be stored, and of storing the energy which has been so converted; and
a generating unit which is wholly or mainly used to re-convert the stored energy into electrical energy;
...
“ system stress event ” has the meaning given in the Rules;
“ T-1 auction ” means a capacity auction ... held during the auction window commencing not less than 1 year and not more than 2 years before the start of the delivery year for which the capacity auction is held;
“T-3 auction” means a capacity auction held during the auction window commencing on 1st September 2019 for the delivery year commencing on 1st October 2022;
“ T-4 auction ” means ... a capacity auction held during the auction window commencing not less than 4 years and not more than 5 years before the start of the delivery year for which the capacity auction is held;
“ target capacity ”, in relation to a capacity year, means the aggregate amount of de-rated capacity which the person determining or recommending the target capacity considers would be adequate in order to meet the reliability standard for that capacity year;
“ termination fee ” means a fee payable by a capacity provider under regulation 43 where a capacity agreement or transferred part is terminated;
“TFx”, for any value of x from x = 1 to x = 5, means the corresponding termination fee payable under regulation 43(3);
...
“ total system ” means the GB transmission system and each distribution network;
“transferred part” has the meaning given in regulation 30A(3);
“ unproven demand side response CMU ” means a demand side response CMU other than a proven demand side response CMU;
“ unproven DSR capacity ” has the meaning given in the Rules;
“ volume ” means a volume of electrical generating capacity or DSR capacity in a time period, expressed in MWh;
“ winter ” means a period starting on 1st October and ending on the following 30th April;
“ working day ” means any day other than a Saturday or Sunday or a day which is a bank holiday or public holiday in England and Wales.
(2) For the purposes of these Regulations, two or more installations are to be treated as being on the same site as each other if they are—
(a) on the same premises;
(b) on premises immediately adjoining each other, or separated from each other only by a road, railway or watercourse;
(c) on premises which are separated from each other by other premises, where all the premises referred to are occupied by the same person or by companies which are in the same group of companies; or
(d) connected by private wires.
(3) In paragraph (2)—
“ installation ” means—
a generating unit;
a demand side response CMU component; or
a building, facility or item of plant or equipment; and
“ private wires ” means electric lines connected to a generating station which are owned by—
the generator;
a consumer who receives a supply of electricity from the generator;
the owner, lessor or lessee of the generator or of one of the premises to which a supply of electricity is made by the generator; or
any of the persons described in paragraphs (a) to (c) jointly with any other of the persons described in those paragraphs,
provided that the owner of those wires is not the holder of a distribution licence under section 6(1)(c) of EA 1989 .
(4) Where anything is required or permitted by these Regulations to be done on or by a working day , unless specified otherwise —
(a) such thing must be done by 5.00 p.m. on that day; and
(b) if the thing is done—
(i) after 5.00 p.m. on a working day; or
(ii) on a day which is not a working day,
it is to be treated as having been done on the next working day.
(1) For the purposes of section 27 of the Act—
(a) “ providing electricity ” means providing any metered electrical output by a generating unit or through an electricity interconnector , and includes, in particular, providing such output by a generating unit which forms part of a storage facility; and
(b) “ reducing demand for electricity ” means—
(i) providing demand side response; or
(ii) permanent electricity demand reduction.
(2) For the purposes of ... these Regulations, “ electricity supplier ” means a person supplying electricity to premises in Great Britain under a licence granted or treated as granted under section 6(1)(d) of EA 1989 .
(1) A “generating CMU” is—
(a) an existing generating unit which meets the conditions in paragraph (2);
(b) a prospective generating unit which, when commissioned, will meet the conditions in paragraph (2);
(c) a combination of two or more existing generating units which meet the conditions in paragraph (3); or
(d) a combination of two or more prospective generating units which, when all of the generating units have been commissioned, will meet the conditions in paragraph (3).
(2) The conditions referred to in paragraph (1)(a) and (b) are that—
(a) the generating unit provides electricity;
(b) the generating unit is capable of being controlled independently from any other generating unit;
(c) the net output of the generating unit is measured by one or more half hourly meters in accordance with capacity market rules; and
(d) the generating unit has a connection capacity not less than the minimum capacity threshold.
(3) The conditions referred to in paragraph (1)(c) and (d) are that—
(a) the generating units meet at least one of Conditions 1 to 4 in paragraph (4);
(b) the generating units are all of the same type ...;
(ba) subject to paragraph (4A), the generating units are all owned by the same person;
(c) subject to paragraph (5), each generating unit is capable of being controlled independently from any other generating unit not forming part of the generating CMU;
(d) the net output of all the generating units is measured by one or more half hourly meters in accordance with capacity market rules; and
(e) the aggregate connection capacity of all the generating units is not less than the minimum capacity threshold.
(4) For the purposes of paragraph (3)(a)—
(a) Condition 1 is that the generating units all form part of a single registered trading unit;
(b) Condition 2 is that—
(i) the generating units are all connected to the total system at the same boundary point; and
(ii) none of the generating units form part of a registered trading unit;
(c) Condition 3 is that—
(i) the generating units have an aggregate connection capacity not exceeding 50 MW; and
(ii) none of the generating units form part of a registered trading unit;
(d) Condition 4 is that—
(i) the generating units are all hydro generating units which are registered as a single BM unit under the Balancing and Settlement Code; and
(ii) there are not more than 10 such generating units.
(4A) The condition in paragraph (3)(ba) does not apply where the aggregate connection capacity of all the generating units is less than 50 MW.
(5) The condition in paragraph (3)(c) does not apply where the generating units meet Condition 4 in paragraph (4).
(6) In paragraph (1)(b) and (d), references to a prospective generating unit being commissioned are to be treated, in the case of a unit falling within paragraph (b) of the definition of “prospective generating unit” in paragraph (8), as references to the unit being recommissioned following an improvements programme.
(7) For the purposes of paragraph (3)(b), generating units are of the same type if—
(a) they are all CMRS distribution units;
(b) they are all non-CMRS distribution units; or
(c) they are all transmission units.
(8) In this regulation—
“ boundary point ” means any point at which any plant or apparatus not forming part of the total system is connected to the total system;
“ CMRS distribution unit ” means a generating unit which exports electricity to a distribution network, where the metering system of that generating unit is registered in the central meter registration service;
“ existing generating unit ” means a generating unit that has been commissioned;
“ hydro generating unit ” means a generating unit driven by water, other than one driven by tidal flows, waves, ocean currents or geothermal sources;
“ non-CMRS distribution unit ” means a generating unit which exports electricity to a distribution network, which is not a CMRS distribution unit;
“ prospective generating unit ” means a generating unit or proposed generating unit that—
has not been commissioned; or
is to be subject to an improvements programme and has not been recommissioned following that improvements programme;
“ registered trading unit ” means a trading unit, other than a base trading unit or sole trading unit , registered in accordance with the Balancing and Settlement Code; and
“ transmission unit ” means a generating unit which exports electricity to the GB transmission system.
(9) In this regulation the following expressions have the same meanings as in the Balancing and Settlement Code as it was in force on 8th September 2014 —
“base trading unit”;
“BM unit”;
“central meter registration service”;
“metering system”; ...
“sole trading unit”;
“trading unit”.
(1) A “demand side response CMU” is a commitment by a person (“a DSR provider”) to provide an amount of capacity when required to do so under capacity market rules, by a method of demand side response which—
(a) is specified in paragraph (2);
(b) in the case of a proven demand side response CMU, meets the conditions in paragraph (3); and
(c) in the case of an unproven demand side response CMU—
(i) meets the conditions in paragraph (3); or
(ii) will meet those conditions prior to the start of the delivery year for which the DSR provider has a capacity agreement.
(2) The methods by which a DSR provider may provide DSR capacity are—
(a) by causing one or more customers (a “DSR customer”) to do one or both of the following—
(i) subject to paragraph (2A), reduce the DSR customer's import of electricity as measured by one or more half hourly meters;
(ii) export electricity generated by one or more permitted on-site generating units;
(b) by the pre-determined variation of the demand of a DSR customer for active power at a site in response to changing system frequency under the terms of a contract with the national system operator.
(2A) For the purposes of this regulation, the reference in regulation 5(2)(a)(i) to a “DSR customer’s import of electricity” does not include import of electricity primarily for the conversion of electricity into a form of energy which can be stored by a storage facility.
(3) The conditions in this paragraph are that—
(a) the DSR provider must, in relation to each demand side response CMU component—
(i) be the DSR customer;
(ii) own the DSR customer; or
(iii) have contractual DSR control over the DSR customer;
(b) each demand side response CMU component must be connected to a half hourly meter that is capable of measuring the import or export of electricity to or from that demand side response CMU component;
(c) the total amount of DSR capacity which the DSR provider commits to provide must exceed the minimum capacity threshold; and
(d) if the demand side response CMU consists of demand side response CMU components on two or more different sites, the DSR capacity of the demand side response CMU must not exceed 50MW.
(4) In paragraph (3)(a), “ contractual DSR control ” means, in respect of any delivery year, having the right (whether by ownership or pursuant to contract notwithstanding that terms and conditions may apply to its exercise) exclusively to control all or part of the metered volume of any demand side response CMU component to provide demand side response when required to do so in that delivery year.
(1) An “interconnector CMU” is—
(a) an existing interconnector which meets the conditions in paragraph (3); or
(b) a prospective interconnector which when commissioned (or, as the case may be, recommissioned) will meet the conditions in paragraph (3).
(2) In paragraph (1)—
“existing interconnector” means an electricity interconnector that has been commissioned;
“prospective interconnector” means an electricity interconnector or proposed electricity interconnector that—
has not been commissioned; or
is to be subject to an improvements programme and has not been recommissioned following that improvements programme.
(3) The conditions referred to in paragraph (1) are that—
(a) the electricity interconnector has a connection capacity not less than the minimum capacity threshold; and
(b) the net output of the electricity interconnector is measured by one or more half hourly meters in accordance with capacity market rules.
(1) The reliability standard is 3 hours of expected loss of load per capacity year.
(2) In paragraph (1), “ the reliability standard ” means the cumulative duration of periods in a capacity year in which it is to be presumed—
(a) by the Secretary of State in—
(i) making any decision about whether a capacity auction ... is to be held; and
(ii) setting auction parameters for such a capacity auction; and
(b) by the Delivery Body in making any recommendation in an electricity capacity report,
that, on average over the long term, loss of load should occur.
(3) For the purposes of this regulation, “loss of load” occurs if—
(a) the national system operator instructs one or more distribution network operators to disconnect customers, or to reduce the voltage on all or part of their network;
(b) the national system operator takes emergency action to avoid disconnections or voltage reductions; or
(c) automatic low frequency demand disconnection takes place,
but not if the action referred to in sub-paragraph (a), (b) or (c) takes place solely because of one or more faults in the GB transmission system or a distribution network.
(4) In paragraph (3)(b), “ emergency action ” means—
(a) instructing a generator to increase the generation of electricity by a generating unit to its maximum output, otherwise than in accordance with a bilateral contract between the national system operator and that generator; or
(b) securing the transmission of electricity to Great Britain through an electricity interconnector, where—
(i) the electricity would not have been so transmitted without the national system operator's action; and
(ii) the primary purpose of the action is to avoid disconnections or voltage reductions.
(5) Where an event referred to in paragraph (3) occurs, the period of loss of load is the time—
(a) from the national system operator issuing an instruction under paragraph (3)(a) or (4)(a) ... until it withdraws that instruction (or, if the national system operator issues two or more such instructions for overlapping periods, from it issuing the first of those instructions until it withdraws the last of them);
(b) during which electricity is transmitted through an interconnector as mentioned in paragraph (4)(b); or
(c) where automatic low frequency demand disconnection takes place, from demand being disconnected until the national system operator issues an instruction to reconnect that demand.
(6) In this regulation, “ automatic low frequency demand disconnection ” has the meaning given in the Grid Code as it was in force on 1st April 2014 (see section OC6.6 of that code).
(1) The Delivery Body must, before 1st June in 2015 and each subsequent year—
(a) prepare a report in accordance with this Part (an “electricity capacity report”); and
(b) send the report to the Secretary of State.
(2) An electricity capacity report must include, for each forecast period specified in paragraph (3)—
(a) a forecast of the peak demand for electricity by customers in Great Britain during the forecast period;
(b) an estimate of the total amount of capacity needed to meet that demand, having regard to the reliability standard; and
(c) forecasts of how much of the demand for electricity, at times of peak demand, will be met by—
(i) interconnected capacity , in relation to each electricity interconnector that has or is likely to have been commissioned before the end of the forecast period concerned ;
(ii) capacity from generating units in Great Britain or the offshore area which do not meet the general eligibility criteria;
(iii) capacity from generating units which already have a capacity obligation for the forecast period;
(iv) capacity from generating units (other than generating units described in paragraph (ii) or (iii)) which are connected to a distribution network; and
(v) demand side response.
(3) The forecast periods for the purposes of paragraph (2) are—
(a) the capacity year starting on 1st October in the calendar year in which the electricity capacity report is sent to the Secretary of State; and
(b) each of the subsequent 14 capacity years.
(4) An electricity capacity report must include recommendations as to—
(a) the portion of the target capacity that should be used in a T-4 auction in the following auction window (if such an auction is held);
(b) in 2017 and each subsequent year, the portion of the target capacity that should be used in a T-1 auction in the following auction window (if such an auction is held); and
(c) the de-rating factors that should apply to—
(i) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(ii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(iii) interconnector CMUs ,
for the purposes of capacity auctions held in the following auction window.
(5) An electricity capacity report must include the de-rating factors that the Delivery Body estimates will apply to—
(a) generating CMUs in each generating technology class; and
(b) demand side response CMUs;
for the purposes of capacity auctions held in the following auction window.
(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1) The Delivery Body must—
(a) make any forecast, estimate or recommendation for the purposes of an electricity capacity report; and
(b) express the forecast, estimate or recommendation in the report,
in accordance with any directions given by the Secretary of State under regulation 9(2).
(2) The Delivery Body must set out in an electricity capacity report any assumptions upon which a forecast, estimate or recommendation in the report is based.
(3) The Delivery Body must publish an electricity capacity report.
(1) The Secretary of State must give to the Delivery Body each year any data held by the Secretary of State which the Secretary of State considers should be made available to the Delivery Body for the purpose of preparing that year's electricity capacity report.
(2) The Secretary of State may give directions to the Delivery Body as to—
(a) any assumptions to be used by the Delivery Body in preparing an electricity capacity report; or
(b) the way in which any forecast, estimate or recommendation is to be expressed in the report.
(3) The information referred to in paragraph (1), and any directions under paragraph (2), must be given to the Delivery Body no later than 22nd April in the year in which the electricity capacity report is to be provided.
(1) The Secretary of State must determine—
(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(ba) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(bb) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(c) by 15th June in each year —
(i) whether a T-4 auction is to be held; and
(ii) whether a T-1 auction is to be held,
in the auction window starting on 1st September in that year.
(1A) Paragraphs (2), (3) and (4) apply in relation to the determination required by regulation 10(1)(c)(ii).
(2) The Secretary of State must, under paragraph (1)(c)(ii), determine that a T-1 auction is to be held, except where paragraph (3) or (4) applies.
(3) The Secretary of State may determine that a T-1 auction is not to be held if the electricity capacity report for the year in which the determination is to be made contains a forecast that no DSR providers will apply to bid in such an auction.
(4) The Secretary of State must determine that a T-1 auction is not to be held for a delivery year if no T-4 auction was held for that delivery year.
(5) Where a determination in paragraph (1)(c) is that an auction is not to be held or that neither auction is to be held, the Secretary of State must, as soon as reasonably practicable after making it, publish such a determination under paragraph (1) .
(6) A determination that a capacity auction is to be held is subject to regulation 26.
(1) “ Auction parameters ”, in relation to a capacity auction, means, subject to paragraph (2), such of the following as are determined by the Secretary of State for that capacity auction under regulation 12 ...—
(a) the demand curve;
(b) the auction target capacity;
(c) the price cap;
(d) the price-taker threshold;
(e) the 15 year minimum £/kW threshold , 9 year minimum £/kW threshold and 3 year minimum £/kW threshold;
(f) the base period applicable for the purpose of calculation of capacity payments;
(g) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(h) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2) If any of the parameters referred to in paragraph (1) for a capacity auction have been adjusted in accordance with these Regulations or capacity market rules, references to the auction parameters for that capacity auction are to the parameters as so adjusted.
(3) In this regulation —
“ 3 year minimum £/kW threshold ” means the minimum amount of capital expenditure per kilowatt of de-rated capacity which a bidder must commit to spending on a generating CMU or an unproven demand side response CMU that is not a three year zero capex threshold CMU to be eligible to bid for a capacity obligation for a period of 2 or 3 delivery years;
“ 9 year minimum £/kW threshold ” means the minimum amount of capital expenditure per kilowatt of de-rated capacity which a bidder must commit to spending on a declared low carbon CMU that is a new build CMU, a refurbishing CMU or an unproven demand side response CMU to be eligible to bid for a capacity obligation for a period of more than 3 and up to 9 delivery years;
“ 15 year minimum £/kW threshold ” means the minimum amount of capital expenditure per kilowatt of de-rated capacity which a bidder must commit to spending—
on a declared low carbon CMU that is a generating CMU or an unproven demand side response CMU to be eligible to bid for a capacity obligation for a period of more than 9 and up to 15 delivery years; or
on any other generating CMU or unproven demand side response CMU to be eligible to bid for a capacity obligation for a period of more than 3 and up to 15 delivery years;
“auction target capacity” means, in respect of a capacity auction, the portion of the target capacity in relation to the capacity year corresponding to the delivery year for which the capacity auction is to be held which should be used for that capacity auction ; and
“declared low carbon CMU”, “new build CMU”, “refurbishing CMU”, and “three year zero capex threshold CMU” have the meaning given in the Rules.
...
(1) For each capacity auction, the Secretary of State must determine each of the auction parameters referred to in sub-paragraphs (a) to (d) of regulation 11(1).
(2) For each T-4 auction, the Secretary of State must also—
(a) determine the auction parameters referred to in sub-paragraphs (e) and (f) of regulation 11(1); and
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2A) When determining under paragraph (1) the auction parameter referred to in regulation 11(1)(b) (auction target capacity) in respect of a T-4 auction and the delivery year for which that T-4 auction is to be held (“delivery year x”), the Secretary of State must—
(a) determine the target capacity for the capacity year corresponding to delivery year x;
(b) determine the target capacity for the capacity year corresponding to delivery year x that should be set aside for the T-1 auction for delivery year x (“the T-1 auction set aside”) in accordance with paragraph (2B); and
(c) deduct the T-1 auction set aside from the target capacity for the capacity year corresponding to delivery year x.
(2B) For the purposes of paragraph (2A)(b), the Secretary of State must determine the T-1 auction set aside by applying a 95% confidence interval around the target capacity for the capacity year corresponding to delivery year x.
(2C) For each T-1 auction, where the delivery year corresponds with delivery year x, the Secretary of State must determine the auction parameter referred to in regulation 11(1)(b) (auction target capacity) to be an amount equal to or greater than 50% of the T-1 auction set aside if previously determined under paragraph (2A)(b) for the T-1 auction for delivery year x.
(3) The determinations under paragraphs (1) and (2) are subject to any adjustments which may be made under regulations 13 and 28.
(4) The Secretary of State must—
(a) make the determinations under paragraph (1) and, if applicable, paragraph (2), and give notice of them to the Delivery Body as soon as reasonably practicable after publishing a decision to hold a capacity auction; and
(b) publish the determinations.
(5) In making the determinations under paragraphs (1) and (2), the Secretary of State must take into account—
(a) the electricity capacity report ...;
(b) the reliability standard; and
(c) the matters specified in section 5(2) of the Act.
(6) If the auction target capacity determined by the Secretary of State for a T-1 auction or a T-4 auction is different from a recommendation in the electricity capacity report as to the portion of the target capacity that should be used in that capacity auction, the determination must include an explanation of—
(a) the Secretary of State’s reasons for not following that recommendation; and
(b) the basis upon which the Secretary of State has made the determination.
(7) In this regulation—
“the 95% confidence interval” means the range of values within which the target capacity for a capacity year may be expected to lie with a 0.95 level of probability;
“auction target capacity” has the meaning given in regulation 11(3).
(1) Subject to paragraph (1A), after the Secretary of State receives a notification from the Delivery Body under regulation 23, the Secretary of State may decide to adjust any of the auction parameters for the capacity auction to which the notification relates.
(1A) If the Secretary of State adjusts the auction parameter referred to in regulation 11(1)(b) (auction target capacity) for a T-1 auction, that auction target capacity must remain equal to or greater than 50% of the T-1 auction set aside if previously determined under regulation 12(2A)(b) for that T-1 auction and delivery year.
(2) The Secretary of State must make any decision under paragraph (1), and give notice of any adjustments to the Delivery Body, within 10 working days after receiving the notification from the Delivery Body.
(3) In this regulation, “the T-1 auction set aside” has the meaning given in regulation 12(2A)(b).
(1) An applicant is eligible to bid in a capacity auction in respect of a CMU if—
(a) the CMU has prequalified for the capacity auction; and
(b) the applicant is the person who applied for its prequalification under capacity market rules.
(2) A CMU has prequalified for a capacity auction if, by 11 working days before the start of the capacity auction—
(a) the Delivery Body has determined under capacity market rules, or under Chapter 1 of Part 10 (dispute resolution and appeals), that the CMU has prequalified; or
(b) the Delivery Body has registered the CMU on the capacity market register as a prequalified CMU in accordance with a direction of the Authority or the court under Chapter 1 of Part 10.
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1) The Delivery Body must not prequalify a CMU for a capacity auction unless it meets the general eligibility criteria.
(2) The general eligibility criteria for a CMU are the conditions specified in paragraphs (3) to (5).
(3) The first condition is that the CMU is in Great Britain or the offshore area.
(4) The second condition is—
(a) in the case of a generating CMU or an interconnector CMU, that the connection capacity of the CMU is equal to or greater than 1MW (the “minimum capacity threshold”); or
(b) in the case of a demand side response CMU, that the DSR capacity of the CMU is equal to or greater than the minimum capacity threshold.
(5) The third condition is that the CMU is not a CMU which, by virtue of regulations 16 and 17 , the Delivery Body must not prequalify for a capacity auction.
(1) The Delivery Body must not prequalify a CMU (“CMU i”) in respect of which—
(a) if CMU i is accredited under the FIT Order, the RHI Regulations or the ROO, the applicant does not provide a non-support confirmation by the close of the prequalification window; or
(b) if an application (which is not determined) for a low carbon exclusion has been made in respect of CMU i for any of the delivery period, the applicant does not provide a withdrawal confirmation by the close of the prequalification window.
(2) The Delivery Body must not prequalify CMU i if—
(a) the CFD counterparty has made an offer of a CFD in respect of the generating station that comprises or includes CMU i—
(i) further to a direction given by the Secretary of State under section 10(1) of the Energy Act 2013 (direction to offer to contract), and the CFD counterparty and an eligible generator have entered into that CFD; or
(ii) under section 14(1) of the Act (CFD notification: offer to contract on standard terms) and regulation 10(1) of the Contracts for Difference (Standard Terms) Regulations 2014 (offer to contract) , and an eligible generator has entered into that CFD; and
(b) that CFD has not expired or been terminated.
(2A) For the purposes of paragraph (2)(a)(ii) , a reference to an eligible generator entering into a CFD has the meaning given in regulation 10(3) of the Contracts for Difference (Standard Terms) Regulations 2014 (offer to contract).
(3) The Delivery Body may request an applicant or the CFD counterparty to provide it with such information as it may require for the purposes of paragraphs (1) and (2), and the applicant or CFD counterparty must, to the extent that it holds the information, comply with such a request as soon as reasonably practicable.
(4) In this regulation—
“ co-firing CMU ” means a generating CMU consisting of one or more generating units which have, in any month after March 2013, generated electricity in the way described in Schedule 2 to the ROO as “co-firing of regular bioliquid”, “low-range co-firing”, “mid-range co-firing”, “high-range co-firing” or “unit conversion”;
“ the FIT Order ” means the Feed-in Tariffs Order 2012 ;
“ low carbon exclusion ” means—
an accreditation under—
the FIT Order;
the RHI Regulations; or
the ROO; or
a CFD;
“ non-support confirmation ” means a declaration in writing to the Delivery Body from an applicant—
that the period for which relevant support may be paid or issued under the FIT Order, the RHI Regulations or the ROO in respect of CMU i will have expired before the start of the delivery period; or
that—
CMU i is a co-firing CMU; and
if the applicant is awarded a capacity obligation in respect of CMU i, the applicant will not, except in accordance with regulation 34, seek to obtain relevant support in respect of CMU i for any of the delivery period;
“ relevant support ” means—
a FIT payment within the meaning referred to in the FIT Order;
a periodic support payment within the meaning of the RHI Regulations; or
a ROC;
“ the RHI Regulations ” means the Renewable Heat Incentive Scheme Regulations 2011 ;
“ withdrawal confirmation ” means a notice to the Delivery Body from the applicant in respect of CMU i that the applicant has withdrawn its application for a low carbon exclusion in respect of that CMU.
(1) The Delivery Body must not prequalify a CMU (“CMU i”) unless the applicant has provided to it, by the close of the prequalification window, a declaration in writing that no relevant grant has been, or will be, paid in respect of CMU i.
(2) In this regulation—
“carbon capture and storage technology” has the meaning given in section 7(3) of the Energy Act 2010;
“relevant grant” means a grant—
under a relevant scheme;
the first payment of which is made, or to be made, within the period of 10 years immediately before the commencement of the delivery period; and
which is made for purposes other than—
carrying out activities of research and development in relation to the design and use of carbon capture and storage technology in respect of CMU i; or
assessing the feasibility of the use of carbon capture and storage technology in respect of CMU i
“ relevant scheme ” means a scheme of financial assistance provided under—
NER 300;
section 1(1) of the Energy Act 2010 in respect of a CCS demonstration project within the meaning of that section; or
section 5(1) of the Science and Technology Act 1965 to support carbon capture and storage.
(3) In paragraph (2), “ NER 300 ” means the competition established under Article 10a(8) of Directive 2003/87/EC of the European Parliament and of the Council establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
In regulations 16 and 17 , “ delivery period ” means the delivery year or period of delivery years for which a capacity obligation would be awarded in respect of a CMU (“CMU i”) if a bid in respect of CMU i were accepted at the capacity auction for which the applicant is applying for prequalification.
(1) This Chapter applies where the Secretary of State has determined that a capacity auction is to be held.
(2) The Delivery Body must exercise the functions conferred on it by—
(a) this Chapter; and
(b) capacity market rules.
(3) The Delivery Body must exercise those functions in accordance with these Regulations and capacity market rules.
(1) The Delivery Body must, before the start of the prequalification window, publish guidelines for the capacity auction (“auction guidelines”).
(2) The auction guidelines must contain—
(a) the provisional date on which the capacity auction is to start;
(b) details of how to apply to prequalify to bid in the capacity auction;
(c) the timetable for submission and determination of applications, which must in particular include the closing date for submission of applications;
(d) the auction parameters;
(e) the de-rating factor for each generating technology class, and for each interconnector CMU, as determined by the Delivery Body or the Secretary of State under capacity market rules; and
(f) such other information as may be—
(i) required by capacity market rules; or
(ii) directed by the Secretary of State or the Authority.
(3) The Delivery Body must, not less than 3 weeks before the date specified under paragraph (2)(a), publish a final version of the auction guidelines which contains—
(a) the date on which the capacity auction is to start; and
(b) any changes made to the auction parameters under regulation 13.
The Delivery Body must—
(a) determine each application for prequalification that is made to it in accordance with capacity market rules;
(b) notify each applicant of its determination; and
(c) reconsider a determination, if an applicant requests it to do so under regulation 69.
(1) The Delivery Body must, as soon as reasonably practicable after it has determined all the applications made to it and, if applicable, complied with any obligations under regulation 69(3) or (4) in relation to requests to review prequalification decisions notified to applicants on prequalification results day (which has the meaning given to that term in the Rules) , notify the Secretary of State of the aggregate de-rated capacity of—
(a) CMUs which have prequalified to bid in the capacity auction;
(b) CMUs in respect of which applications were rejected; and
(c) generating CMUs , or interconnector CMUs, in respect of which the Delivery Body received—
(i) an opt-out notification stating that the CMU will be closed down, decommissioned or otherwise non-operational by the commencement of the delivery year;
(ii) an opt-out notification stating that the CMU will be temporarily non-operational for all the winter of the delivery year but will be operational thereafter; or
(iii) an opt-out notification stating that the CMU will remain operational during the delivery year.
(2) The Delivery Body must, at the same time—
(a) advise the Secretary of State whether, in light of the data referred to in paragraph (1), the demand curve for the capacity auction should be adjusted; and
(b) provide a recommendation to the Secretary of State as to the adjustment, if any, that should be made to the demand curve.
(3) The Delivery Body must give the advice and recommendation in accordance with any directions given by the Secretary of State.
(4) In paragraph (1), “ opt-out notification ” has the meaning given in the Rules.
(1) The Delivery Body must, subject to regulation 26, hold a capacity auction starting on the date specified in the final auction guidelines published under regulation 21(3).
(2) The Delivery Body may arrange for another person to conduct the capacity auction on its behalf, and in these Regulations “ the auctioneer ” means—
(a) the Delivery Body, if it conducts the capacity auction itself; or
(b) the person appointed by the Delivery Body to conduct the capacity auction.
(3) The auctioneer must conduct the capacity auction in accordance with—
(a) capacity market rules;
(b) the auction guidelines; and
(c) any instructions given by the Secretary of State on how price decrements are to be set.
(4) The Delivery Body is responsible for the performance of functions conferred on the auctioneer by these Regulations or capacity market rules, whether or not the Delivery Body performs those functions itself.
(5) In paragraph (3)(c), “ price decrement ” means the amount by which the bidding price is to be decreased from one bidding round of a capacity auction to the next.
(1) The Delivery Body must, after a capacity auction is completed—
(a) as soon as reasonably practicable notify the auction results to the Secretary of State;
(b) within one working day, give notice to each bidder of whether or not its bid was a successful bid; and
(c) within 8 working days, publish the auction results.
(2) In paragraph (1) “ the auction results ” means—
(a) the auction clearing price;
(b) the total amount of capacity in respect of which successful bids were made;
(c) the CMUs in respect of which successful bids were made;
(d) in respect of each such CMU—
(i) the de-rated capacity of the CMU ...; and
(ii) the duration of capacity obligation for which, and the price at which, the successful bid was made.
(3) In paragraphs (1) and (2), a “ successful bid ” means a bid that, subject to regulation 27, results in the award of a capacity obligation to the bidder.
(1) A capacity auction may not be cancelled, postponed or stopped except as provided in this regulation.
(2) The Delivery Body—
(a) must cancel or postpone a capacity auction if directed to do so by the Secretary of State under paragraph (3); and
(b) may postpone or stop a capacity auction if, in the Delivery Body's opinion, the capacity auction cannot be conducted fairly and in accordance with regulation 24(3), because of a failure of the auction IT system or any other exceptional circumstances.
(3) The Secretary of State—
(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b) may, at any time before the date on which the capacity auction is to start, direct the Delivery Body for any other reason—
(i) to postpone a capacity auction for an indefinite period; or
(ii) to start the capacity auction on a later date than the date specified in auction guidelines.
(4) If the Delivery Body postpones or stops a capacity auction under paragraph (2)(b), the Delivery Body must hold or restart the capacity auction at a later date, and must comply with regulation 28(3)(b) and (c) in relation to the rearranged capacity auction.
(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6) If the Secretary of State gives a direction under paragraph (3)(b) to postpone a capacity auction, the Secretary of State must as soon as reasonably practicable give a further direction to the Delivery Body to rearrange or cancel the capacity auction.
(7) Paragraph (6) is subject to regulation 28(4).
(8) If the Secretary of State directs the Delivery Body to cancel or postpone a capacity auction, the Secretary of State must, not later than 4 weeks after giving that direction, publish the reasons for it.
(1) The Secretary of State may, within 7 working days after a capacity auction is completed, annul the capacity auction if it appears to the Secretary of State that there are reasonable grounds to suspect that—
(a) there was an irregularity in relation to the capacity auction; and
(b) the irregularity affected—
(i) the auction clearing price; or
(ii) the CMUs which were successful in the capacity auction.
(2) For the purposes of paragraph (1) there is an irregularity if, but only if, the capacity auction was not conducted in accordance with regulation 24(3).
(3) If the Secretary of State decides to annul a capacity auction, the Secretary of State must—
(a) immediately publish that decision; and
(b) not later than 4 weeks after making that decision, publish the reasons for it.
(1) If the Secretary of State gives a direction under regulation 26(6) to rearrange a capacity auction, the Secretary of State may, subject to paragraph (4)—
(a) give directions to the Delivery Body about the holding of that capacity auction; and
(b) decide to adjust any of the auction parameters for that capacity auction.
(2) Directions under paragraph (1)(a) may include a direction to re-open prequalification for the capacity auction, and must include such a direction if any of the auction parameters are adjusted.
(3) The Delivery Body must—
(a) comply with any directions under paragraph (1);
(b) publish a revised version of the auction guidelines for the rearranged auction; and
(c) ensure that a rearranged capacity auction is completed by the earlier of—
(i) the end of the auction window; or
(ii) 6 months after the date of any direction by the Secretary of State to hold a rearranged capacity auction.
(4) The Secretary of State must not give directions under regulation 26(6) , or paragraph (1) of this regulation, if the effect of those directions is that it would not be reasonably practicable for the Delivery Body to comply with paragraph (3)(c).
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1) A “capacity agreement” comprises the rights and obligations accruing to a capacity provider under or by virtue of electricity capacity regulations and capacity market rules in relation to a particular capacity committed CMU and one or more delivery years.
(2) A distinct capacity agreement accrues to each successful bidder in a capacity auction (unless the capacity auction is annulled under regulation 27), in relation to each CMU for which a successful bid was made, for—
(a) a capacity obligation equal to the de-rated capacity of the CMU ...;
(b) the delivery year for which the capacity auction was held in the case of a capacity agreement for a one year capacity obligation, or a period of two or more whole delivery years commencing with that delivery year in the case of a capacity agreement for a multi-year capacity obligation; and
(c) the capacity cleared price.
(3) The “ capacity cleared price ” means the price which, subject to any provision for adjustment for inflation, is to be used for the purpose of calculating capacity payments in respect of a capacity obligation.
(4) The capacity cleared price is—
(a) the auction clearing price; ...
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5) A capacity agreement—
(a) may not be disclaimed; and
(b) may not be transferred or terminated except as provided in these Regulations and capacity market rules.
(6) Unless terminated in accordance with these Regulations or capacity market rules, and subject to any termination of a transferred part in accordance with regulation 30A(4), once a capacity agreement takes effect in accordance with the Rules, it remains in force until the expiry of the period of delivery years for which it is issued.
(1) A capacity agreement may be transferred in accordance with capacity market rules so as to apply in respect of a CMU—
(a) for the entire delivery year, or period of delivery years, for which the capacity agreement has effect; or
(b) only for a specified number of calendar days in such a delivery year (“the transfer period”).
(2) A transfer under paragraph (1) may be made—
(a) in respect of the entire capacity obligation comprised in the capacity agreement; or
(b) in respect of a part only of that obligation.
(3) For the purposes of this regulation, a “transferred part” comprises the rights and obligations accruing to the transferee in respect of a CMU where the capacity agreement (“the related agreement”) is transferred under paragraph (1)(b) or (2)(b).
(4) A transferred part may be terminated, in accordance with capacity market rules, so as to extinguish the rights and obligations accruing to the transferee.
(5) But a termination of the transferred part does not—
(a) in itself amount to the termination of the related agreement; or
(b) affect any rights and obligations accruing—
(i) in a part of a delivery year that is not included in the transfer period; or
(ii) in relation to any part of the capacity obligation that is not transferred.
(6) A termination of the related agreement does not in itself amount to the termination of a transferred part and does not extinguish the rights and obligations accruing in respect of the transferred part.
(7) This regulation applies to the further transfer of a transferred part as it applies to a transfer of a capacity agreement.
(1) The Delivery Body must, in accordance with this regulation and capacity market rules, establish and maintain a capacity market register containing details of—
(a) in respect of each CMU that is the subject of an application to prequalify for a capacity auction—
(i) the prequalification decision; and
(ii) the de-rated capacity of the CMU; and
(b) each capacity agreement.
(2) The Delivery Body must include on the capacity market register in respect of each capacity agreement—
(a) a description of the CMU in respect of which the capacity agreement is issued;
(b) the duration of the capacity agreement, and the delivery year or years for which it is issued;
(c) the capacity obligation for which the capacity agreement is issued;
(d) the capacity cleared price;
(e) in the case of a capacity agreement issued following a T-4 auction, the base period applicable for the purpose of calculating capacity payments;
(f) the annual penalty cap and monthly penalty cap applicable in accordance with the electricity capacity regulations in force at the date of issue of the capacity agreement, expressed respectively as percentages of the annual capacity payment and the monthly capacity payments payable under the capacity agreement;
(g) whether the capacity provider is subject to a financial commitment milestone and, if so, the date by which that milestone must be met;
(h) whether the capacity provider is subject to a minimum completion requirement and, if so, the long stop date in respect of that requirement;
(i) the rate at which each termination fee is payable , which must be determined by the Delivery Body in accordance with regulation 32; and
(j) such other matters as may be specified in capacity market rules.
(3) The matters referred to in sub-paragraphs (a) to (i) of paragraph (2) apply throughout the duration of the capacity agreement and may not be amended except—
(a) by the Delivery Body to correct an administrative error;
(b) in accordance with a direction of the Authority or the court under Chapter 1 of Part 10;
(c) in accordance with any provision of electricity capacity regulations or capacity market rules for—
(i) the adjustment of amounts for inflation;
(ii) the extension of a date by which a milestone or other requirement must be met; or
(iii) the termination of capacity agreements.
(4) In paragraph (2)(h), “long stop date” and “minimum completion requirement” have the meanings given in the Rules.
(1) In this regulation—
“TFx rate ” (for any value of x from x = 1 to x = 5) means the rate at which a termination fee is payable by a capacity provider if—
a capacity agreement is terminated on a ground specified in capacity market rules; and
capacity market rules specify that TFx is payable in the event of the capacity agreement being terminated on that ground;
...
(2) Those rates are as follows—
TF1 rate is £5,000/MW;
TF2 rate is £25,000/MW;
TF3 rate is £10,000/MW;
TF4 rate is £15,000/MW;
TF5 rate is £35,000/MW.
(4) References in this regulation to a rate expressed as £/MW are to that amount in pounds per MW of de-rated capacity ... for which the capacity agreement is issued, as specified in the capacity market register.
(5) This regulation applies to the termination of a transferred part as it applies to the termination of a capacity agreement; but in that case, the reference in paragraph (4) to the de-rated capacity ... for which the capacity agreement is issued is to be construed as a reference to the capacity obligation comprised in the transferred part.
(1) This regulation applies where the Delivery Body gives a termination notice to a capacity provider under capacity market rules.
(2) The Secretary of State may, if the Secretary of State thinks fit, within 3 months of the date on which the termination notice is given—
(a) direct the Delivery Body to withdraw the termination notice; or
(b) if the termination notice was given on the ground that the capacity provider has failed to meet a specified requirement, extend the date by which the capacity provider must meet that requirement.
(3) The date to which a requirement is extended under paragraph (2)(b) must not be later than 6 months after the date on which the termination notice was given.
(4) A capacity provider may make representations to the Secretary of State requesting the Secretary of State to exercise the discretion in paragraph (2).
(5) Representations under paragraph (4)—
(a) must be made in writing within 20 working days after the date on which the termination notice is given; and
(b) if the termination notice was given on the ground that the capacity provider has failed to meet a specified requirement, must specify a cure plan.
(6) The Secretary of State must consider any representations made in accordance with paragraph (5).
(7) A capacity provider may not use the procedure in paragraphs (4) and (5) to dispute whether a termination event has occurred, and may only dispute that matter in accordance with Chapter 1 of Part 10.
(8) In this regulation—
(a) a “ cure plan ” means proposals by the capacity provider demonstrating how and when it will comply with the specified requirement (except as to any provision in capacity market rules about the time for compliance with the specified requirement);
(b) a “ specified requirement ” means a requirement in capacity market rules, the non-compliance with which is specified in capacity market rules as a termination event.
(9) In this regulation, “termination event” and “termination notice” have the meanings given in the Rules.
(1) This regulation applies where the Delivery Body gives a reduction notice to a capacity provider under the Rules.
(2) The Secretary of State may, if the Secretary of State thinks fit, within 3 months of the date on which the reduction notice is given—
(a) direct the Delivery Body to extend the date by which the capacity provider must meet a specified requirement; or
(b) direct the Delivery Body to withdraw the reduction notice.
(3) The date to which a requirement is extended by virtue of a direction under paragraph (2)(a) must not be later than 6 months after the date on which the reduction notice is given.
(4) If a capacity provider wishes the Secretary of State to exercise the discretion in paragraph (2), the capacity provider must make representations to the Secretary of State.
(5) Representations under paragraph (4) must—
(a) be made in writing within 20 working days after the date on which the reduction notice is given;
(b) request a direction under paragraph (2);
(c) specify the reasons for requesting a direction under paragraph (2); and
(d) where a direction under paragraph (2)(a) is requested, specify a cure plan.
(6) The Secretary of State must consider any representations made in accordance with paragraph (4).
(7) In this regulation—
(a) a “cure plan” means proposals by the capacity provider demonstrating how it will comply with the specified requirement;
(b) a “specified requirement” means a requirement in the Rules, the noncompliance with which is specified in the reduction notice; and
(c) “reduction notice” has the meaning given in the Rules.
(1) The Delivery Body must terminate a capacity agreement (“A”) issued following a T-4 capacity auction where, by no later than 16 months before the start of the delivery period, the Delivery Body receives in respect of A—
(a) a CFD transfer notice; or
(b) a ROO conversion notice.
(2) The Delivery Body must—
(a) comply with paragraph (1) immediately it receives the notice; and
(b) as soon as reasonably practicable, give a notice that it has terminated A to—
(i) the capacity provider in respect of A;
(ii) the Settlement Body; and
(iii) the CFD counterparty in respect of a CFD transfer notice or the Authority in respect of a ROO conversion notice.
(2A) Subject to paragraph (2B), a CFD transfer notice must include a statement verifying the truth of the statements contained in the CFD transfer notice, which is signed by two directors of the capacity provider or, in the case of a capacity provider which is not a company, by two persons duly authorised by the capacity provider.
(2B) If a capacity provider has a sole director, references to “directors” in paragraph (2A) are to be read as the sole director.
(3) In this regulation—
“ allocation round ” means an allocation round established by the Secretary of State under regulation 4 of the Contracts for Difference (Allocation) Regulations 2014;
“ CFD transfer notice ” means a notice from the capacity provider in respect of CMU i which—
identifies A;
states that the capacity provider in respect of CMU i seeks the termination of A in order to become eligible to apply for a CFD (other than a CCS CFD) in an allocation round;
identifies the specific allocation round in which the capacity provider intends to apply;
requests that the Delivery Body terminate A; and
complies with paragraph (2A);
“ CMU i ” means the CMU to which A applies;
“ the delivery period ” means the delivery year or the period of delivery years for which A imposes a capacity obligation;
“ ROO conversion notice ” means a notice from the capacity provider in respect of A which—
identifies A;
states that the capacity provider intends to claim ROCs in respect of CMU i as a unit conversion or as part of a station conversion for any of the delivery period; and
includes a written confirmation from the Authority that at least one ROC has been issued in respect of CMU i as a unit conversion or as part of a station conversion since the date A was awarded;
“ station conversion ” has the same meaning as it has in the ROO ; and
“ unit conversion ” has the same meaning as it has in the ROO .
(1) This regulation applies where a capacity provider gives the Delivery Body, in accordance with capacity market rules, a CCS CFD transfer notice in relation to a CMU (“CMU i”) to which a capacity agreement (“ A ”) applies.
(2) The Delivery Body must give a notice specifying the CCS CFD related termination date in respect of A, to—
(a) the capacity provider in respect of A;
(b) the Secretary of State;
(c) the Authority;
(d) the Settlement Body; and
(e) the CFD counterparty.
(3) A is terminated on the CCS CFD related termination date specified in the notice given by the Delivery Body under paragraph (2) unless—
(a) A is terminated in accordance with these Regulations or on a ground specified in the capacity market rules prior to the CCS CFD related termination date; or
(b) the duration of A is reduced in accordance with capacity market rules such that it expires before the CCS CFD related termination date.
(4) In this regulation—
“ CCS CFD ” means a CFD in connection with which an eligible generator is to alter an existing generating station so that it becomes a generating station connected to a complete CCS system;
“ CCS CFD evidence ” has the meaning given in the Rules;
“ CCS CFD payment start date ” means the date on which a person becomes eligible under a CCS CFD to receive a generation counterparty payment;
“ CCS CFD related termination date ” means the date which is:
the last day of the capacity year which the capacity provider in respect of CMU i specifies in a CCS CFD transfer notice as the final delivery year of A; or
six working days after the CCS CFD transfer notice window during which a CCS CFD transfer notice is given, where the capacity provider in respect of CMU i states in a CCS CFD transfer notice that it intends for A to end before its first delivery year;
“ CCS CFD transfer notice ” means a notice from a capacity provider which—
identifies a capacity agreement which the capacity provider holds;
describes the CMU to which that capacity agreement relates;
states that the capacity provider proposes to enter or has entered into a CCS CFD in respect of the CMU;
specifies—
the capacity year which the capacity provider intends to be the final delivery year of the capacity agreement; or
that the capacity provider intends for the capacity agreement to end before its first delivery year;
requests that the Delivery Body terminates the capacity agreement on a nominated CCS CFD related termination date;
is accompanied by CCS CFD evidence; and
includes a statement verifying the truth of the statements contained in and accompanying the notice, which is signed by—
where the capacity provider is a company with more than one director, two directors;
where the capacity provider is a company with a sole director, the sole director;
where the capacity provider is not a company, by two persons duly authorised by the capacity provider;
“ CCS CFD transfer notice window ” has the meaning given in the Rules;
“ complete CCS system ” has the meaning given in regulation 2(1) of the Contracts for Difference (Definition of Eligible Generator) Regulations 2014 ;
“ generating station ” has the meaning given in regulation 2(1) of the Contracts for Difference (Definition of Eligible Generator) Regulations 2014;
“ generation counterparty payment ” has the meaning given in regulation 4(2) of the Contracts for Difference (Electricity Supplier Obligations) Regulations 2014 ;
“ nominated CCS CFD related termination date ” means, in respect of a CMU described in a CCS CFD transfer notice, a date which is—
before the date which the capacity provider expects to be the CCS CFD payment start date under a CCS CFD which the capacity provider proposes to enter or has entered into in respect of the CMU; and
either—
the last day of the capacity year which the capacity provider in respect of the CMU intends to be the final delivery year of the capacity agreement which applies to the CMU; or
six working days after the CCS CFD transfer notice window during which the CCS CFD transfer notice is given by the capacity provider, where the capacity provider in respect of the CMU intends for the capacity agreement to end before its first delivery year.
(1) Any capacity agreement issued in respect of a CMU which, at the date on which the capacity agreement was issued, did not meet the general eligibility criteria is null and void.
(2) Where the Delivery Body becomes aware that a capacity agreement is null and void by reason of paragraph (1), the Delivery Body must as soon as reasonably practicable give a notice to the capacity provider and the Settlement Body which—
(a) identifies the capacity agreement; and
(b) states that the capacity agreement is null and void.
(1) The Settlement Body must make the calculations set out in this Part and Schedule 1 (the “settlement calculations”)—
(a) by such date as may be specified or, where no date is specified, by such time as is necessary to enable the Settlement Body to comply with the regulations in this Part; and
(b) so far as possible, using the required data.
(2) Where, by the time a settlement calculation is to be made, the Settlement Body has not been provided with any required data which is necessary for that calculation, the calculation must be made using the best data available to the Settlement Body.
(3) In this regulation, “ required data ” means data which is required to be provided to the Settlement Body under capacity market rules.
(1) Where a capacity provider (“C”) fails to comply with a requirement in capacity market rules to provide data to the Settlement Body, the Settlement Body must give a notice to C that C is in default (a “data default notice”).
(2) A data default notice may be varied by the Settlement Body and must be revoked when C has provided all the data required by capacity market rules.
(1) An invoice or credit note issued by the Settlement Body must set out the determination of the amount which the recipient is liable to pay, or is entitled to receive, in such detail as will readily show the recipient how the determination has been made.
(2) An invoice must specify the day by which it is to be paid, which must be not less than 3 working days after the date on which the invoice is issued.
(3) Each electricity supplier and capacity provider must provide the Settlement Body with an address for electronic service of invoices and credit notes.
(4) Where an electricity supplier or a capacity provider has complied with paragraph (3), the Settlement Body must send an invoice or credit note electronically to the address provided.
(1) For each relevant settlement period in a month (“month M”), the Settlement Body must determine for each capacity committed CMU—
(a) the adjusted load-following capacity obligation of the CMU in the settlement period (" A L F C O i j ”);
(b) the net output of the CMU in the settlement period (“ E i j ”); and
(c) adjusted E ij (“ A E i j ”).
(2) The Settlement Body must make the determinations under paragraph (1) in accordance with capacity market rules.
(3) The determinations under paragraph (1)(a) and (b) must be made by no later than 10 working days after the end of month M.
(4) The determination under paragraph (1)(c) must be made after the close of the volume reallocation window for month M, but by no later than 34 working days after the end of month M.
(5) In this regulation—
“adjusted E ij ”, in relation to a capacity committed CMU and a relevant settlement period, means E ij with any adjustment made to it as a result of volume reallocation;
“capacity market volume reallocation notifications” has the meaning given in the Rules ;
“net output”, in relation to a demand side response CMU, means DSR volume (as defined in capacity market rules);
“volume reallocation” means the procedure in capacity market rules by which part of the net output of a ... CMU in a relevant settlement period may be reallocated to another ... CMU for the purpose of the settlement calculations; and
“volume reallocation window” means the period during which persons qualified to do so (within the meaning given in regulation 42(2)(c)) may submit capacity market volume reallocation notifications under capacity market rules.
(1) A capacity provider (“C”) is entitled, subject to paragraphs (5) and (6) and to regulations 49 to 51, to receive from the Settlement Body a capacity payment determined in accordance with this regulation in respect of each month of a delivery year (“month M”) for the capacity committed CMUs for which C was the capacity provider during month M.
(2) The Settlement Body must, after the end of month M—
(a) determine the amount of the capacity payment which is payable to C in respect of month M (“ M C P c m ”); and
(b) issue a credit note to C for the amount determined for it.
(3) M C P c m must be calculated in accordance with paragraph 4 of Schedule 1.
(4) The Settlement Body must issue a credit note to C under paragraph (2)(b)—
(a) by no later than the 28 th working day after the end of month M; but
(b) if C is liable to pay a capacity provider penalty charge in respect of month M, not earlier than the day after the day by which C is required to pay that charge.
(5) Paragraphs (1) to (4) do not apply unless by the 26 th working day after the end of month M the Settlement Body has received capacity market supplier charges in respect of month M.
(6) If by the day referred to in paragraph (5) the Settlement Body has received capacity market supplier charges in respect of month M the total of which is less than the sum of M C P c m for all capacity providers, the amount of each capacity payment which would otherwise be determined under paragraph (2) must be reduced by the same proportion so that the total amount of capacity payments payable to capacity providers is equal to the total amount of capacity market supplier charges received.
(7) In this regulation, “capacity market supplier charges” means charges which electricity suppliers are required to pay under electricity capacity regulations to meet the cost of funding capacity payments.
(1) A capacity provider (“C”) must pay to the Settlement Body a capacity provider penalty charge in respect of any month of a delivery year (“month M”) if, in respect of month M, a settlement period penalty applies to one or more capacity committed CMUs for which C was the capacity provider during month M.
(2) If one or more capacity providers are liable to pay a capacity provider penalty charge in respect of month M the Settlement Body must, by no later than the 35th working day after the end of month M—
(a) determine the amount, if any, payable by each capacity provider in respect of capacity provider penalty charges incurred in month M; and
(b) issue to each capacity provider which is liable to pay capacity provider penalty charges an invoice for the amount determined for it.
(3) The amount payable by C under paragraph (2)(a) is the sum of—
(a) MPSA im , as calculated under paragraph 6 of Schedule 1, for each capacity committed CMU for which C was registered on the capacity market register as the capacity provider for the whole of month M; and
(b) C’s proportion of MPSA im , as calculated under paragraphs 6 and 8 of Schedule 1, for each capacity committed CMU for which C was registered on the capacity market register as the capacity provider for part of month M.
(3A) The percentages to be included in the capacity market register under regulation 31(2)(f) are—
(a) for the annual penalty cap, 100%; and
(b) for the monthly penalty cap, 200%.
(4) In paragraph (1), “ settlement period penalty ” means a penalty calculated under paragraph 5 of Schedule 1.
(1) A person (“P”) is entitled to receive from the Settlement Body an over-delivery payment in respect of a delivery year (“year X”) if—
(a) any capacity committed CMU (“CMU i”) for which P was the capacity provider over-delivered in any relevant settlement period in year X; or
(b) P has made a qualifying delivery in any such settlement period.
(2) For the purposes of this regulation—
(a) CMU i over-delivers in a relevant settlement period j if AE ij is greater than ALFCO ij in that settlement period;
(b) P makes a qualifying delivery in a relevant settlement period j if—
(i) P was a qualified person (but not a capacity provider) in respect of a CMU (“CMU i”) during that period, and
(ii) in that period, AE ij is greater than zero;
(c) a “qualified person” is a person who—
(i) has registered with the delivery body under capacity market rules in respect of a CMU for the purpose of participating in volume reallocation, and
(ii) is an “acceptable transferee” within the meaning of capacity market rules; and
(d) “volume reallocation” has the meaning given in regulation 39(5).
(3) The Settlement Body must, by not later than the 28 th working day after the end of year X—
(a) determine the amount, if any, of the payments payable to each person under this regulation in respect of year X; and
(b) issue to each person who is entitled to such a payment a credit note for the amount determined for it.
(4) The amount payable to P under paragraph (3)(a) is the sum of—
(a) TODP ix , as calculated in accordance with paragraph 7 of Schedule 1, for each CMU—
(i) for which P was registered on the capacity market register as the capacity provider for the whole of year X, or
(ii) in respect of which P was a qualified person for the whole of year X; and
(b) P’s proportion of TODP ix , as calculated in accordance with paragraphs 7 and 8 of Schedule 1, for each CMU—
(i) for which P was registered on the capacity market register as the capacity provider for part of year X, or
(ii) in respect of which P was a qualified person for part of year X.
(1) A capacity provider must pay to the Settlement Body a termination fee, by way of a financial penalty, if—
(a) a capacity agreement is terminated on a ground specified in capacity market rules; and
(b) capacity market rules specify that a termination fee is payable in the event of the capacity agreement being terminated on that ground.
(1A) A termination fee is payable in accordance with paragraph (1) if the capacity agreement is terminated in accordance with capacity market rules, notwithstanding that the termination does not take effect until after the expiry of the delivery year, or period of delivery years, to which the capacity agreement relates (“the relevant period”).
(2) The Settlement Body must, as soon as reasonably practicable after receiving notice of the termination of a capacity agreement on a ground for which a termination fee is payable—
(a) determine the amount in pounds of the termination fee that is payable; and
(b) issue to the capacity provider an invoice for that amount.
(3) Where capacity market rules specify that TFx is payable (for any value of x from x = 1 to x = 5) , the amount must be determined in accordance with the formula—
(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5) In this regulation—
“CO” means the capacity obligation in MW for which the capacity agreement was issued, as specified in the capacity market register;
“TFx rate ” (for any value of x from x = 1 to x = 5) means the rate in pounds per MW determined in accordance with regulation 32 and specified on the capacity market register as the rate at which TFx is payable under the capacity agreement.
(6) In this regulation, references to the termination of a capacity agreement include references to the termination of a transferred part; and for that purpose—
(a) the reference to the relevant period in paragraph (1A) is to be construed as a reference to the transfer period as defined in regulation 30A(1)(b); and
(b) “CO” in paragraph (5) means the capacity obligation in MW comprised in that transferred part as specified on the capacity market register.
(1) A capacity provider in respect of a new build interconnector CMU must pay to the Settlement Body a fee (a “non-completion fee”) by way of a financial penalty if, in circumstances specified for the purposes of this regulation by capacity market rules, the capacity provider fails to meet the completion requirements of the capacity agreement.
(2) For the purposes of paragraph (1)—
“completion requirements” are requirements to reach a level of operational capability specified in capacity market rules by the end of a delivery year;
“new build interconnector CMU” means a prospective interconnector CMU which has not been commissioned.
(3) The Settlement Body must, as soon as reasonably practicable after receiving notice in accordance with capacity market rules of the imposition of a non-completion fee—
(a) determine the amount in pounds of the non-completion fee that is payable; and
(b) issue to the capacity provider an invoice for that amount.
(4) Paragraphs (3) to (5) of regulation 43 apply to the determination of the amount of a non-completion fee as they apply to the determination of the amount of a termination fee.
(5) For the purposes of this regulation, references in regulation 32(1)—
(a) to a “termination fee” are to be construed as references to a non-completion fee; and
(b) to termination on a ground specified in capacity market rules are to be construed as references to a failure to meet completion requirements in circumstances so specified.
(6) Regulation 33 applies (except for paragraphs (2)(b), (3) and (5)(b)) to a non-completion notice as it applies to a termination notice, and for that purpose, a reference in regulation 33 to—
(a) a “ termination fee ” is to be construed as a reference to a non-completion fee; and
(b) a “ termination notice ” is to be construed as a reference to a non-completion notice.
(1) A capacity provider must repay capacity payments to the Settlement Body if—
(a) a capacity agreement is terminated on a ground specified in capacity market rules; and
(b) capacity market rules specify that capacity payments are repayable in the event of the capacity agreement being terminated on that ground.
(2) The Settlement Body must, as soon as reasonably practicable after receiving final notice of termination of the capacity agreement—
(a) determine the amount in pounds of the capacity payments that are repayable; and
(b) issue to the capacity provider an invoice for that amount.
(3) Where capacity market rules specify that capacity payments are repayable in respect of—
(a) the period TP1, the capacity payments that must be repaid are those made in respect of the period beginning with the date of the termination notice and ending with the date of termination of the relevant capacity agreement;
(b) the period TP2, the capacity payments that must be repaid are those made in respect of the period beginning with the date of the termination event and ending with the date of termination of the relevant capacity agreement;
(c) the period TP3, the capacity payments that must be repaid are those made in respect of the period beginning with the date on which capacity payments began under the relevant capacity agreement and ending with the date of termination of the relevant capacity agreement ;
(d) the period TP4, the capacity payments that must be repaid are those made in respect of the period beginning on 1st October, and ending on 1st May, of the relevant delivery year.
(4) In this regulation—
(a) “final notice of termination” means a notice given by the Delivery Body in accordance with capacity market rules that the capacity agreement has terminated; and
(b) “termination event” and “termination notice” have the meaning given in the Rules.
(5) This regulation applies to the termination of a transferred part as it applies to the termination of a capacity agreement.
The Electricity Capacity Regulations 2014 (legislation.gov.uk, OGL v3.0). Retrieved via LawPlayer, https://lawplayer.com/uk/act/uksi-2014-2043
Contains public sector information licensed under the Open Government Licence v3.0.
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