The Contracts for Difference (Electricity Supplier Obligations) (Amendment) Regulations 2024

• Citation: S.I. 2024/1159
• Sections: 5

Section 1 Citation, commencement and extent

(1) These Regulations may be cited as the Contracts for Difference (Electricity Supplier Obligations) (Amendment) Regulations 2024.

(2) These Regulations come into force on 12th November 2024.

(3) These Regulations extend to England and Wales, Scotland and Northern Ireland.

Section 2 Amendment of the Contracts for Difference (Electricity Supplier Obligations) Regulations 2014

The Contracts for Difference (Electricity Supplier Obligations) Regulations 2014 are amended in accordance with the following provisions.

Section 3 Amendment to regulation 2 (Interpretation)

In regulation 2(1), at the appropriate place insert—

“ transport and storage provider ” means a person who holds a licence under section 7 of the Energy Act 2023 .

Section 4 Amendment to regulation 4 (CFD daily contributions)

In regulation 4—

(a) in paragraph (1)—

(i) for the definition of GP, substitute—

GP is the total amount of generation counterparty payments which the CFD counterparty is required to make in respect of—

electricity generation which occurred on that day,

electricity generation capacity which was made available on that day,

transport and storage capital costs or operational costs which arose on that day,

carbon dioxide capture which occurred on that day,

carbon dioxide capture capability which was made available on that day,

transport and storage revenue shortfalls which arose on that day,

except for any payments which, at the time of the final reconciliation determination in respect of that quarterly obligation period, had not been determined by the CFD counterparty;

(ii) for the definition of CP, substitute—

CP is the total amount of generation party payments which the CFD counterparty has received from CFD parties in respect of—

electricity generation which occurred on that day,

electricity generation capacity which was made available on that day,

transport and storage capital costs or operational costs which arose on that day,

carbon dioxide capture which occurred on that day,

carbon dioxide capture capability which was made available on that day,

transport and storage revenue shortfalls which arose on that day,

except for any payments which, at the time of the final reconciliation determination in respect of that quarterly obligation period, had not been determined by the CFD counterparty;

(b) in paragraph (2)—

(i) for the definition of “generation counterparty payment”, substitute—

“ generation counterparty payment ” means any CFD counterparty payment made under, or in respect of a breach of, a CFD or connected agreement which is calculated directly by reference to—

an amount of electricity generated by a generating station which is the subject of that CFD or connected agreement,

an amount of electricity generation capacity made available by a generating station which is the subject of that CFD or connected agreement,

the capital costs or the operational costs incurred by a transport and storage provider and is payable under the CFD or connected agreement to the generating station which is the subject of that CFD or connected agreement,

an amount of carbon dioxide captured by a generating station which is the subject of that CFD or connected agreement,

an amount of carbon dioxide capture capability made available by a generating station which is the subject of that CFD or connected agreement,

the revenue shortfalls of a transport and storage provider and is payable under the CFD or connected agreement to the generating station which is the subject of that CFD or connected agreement;

(ii) for the definition of “generation party payment”, substitute—

“ generation party payment ” means any CFD party payment made under a CFD or connected agreement which is calculated directly by reference to—

an amount of electricity generated by a generating station which is the subject of that CFD or connected agreement,

an amount of electricity generation capacity made available by a generating station which is the subject of that CFD or connected agreement,

the capital costs or the operational costs incurred by a transport and storage provider and is payable under the CFD or connected agreement to a generating station which is the subject of that CFD or connected agreement,

an amount of carbon dioxide captured by a generating station which is the subject of that CFD or connected agreement,

an amount of carbon dioxide capture capability made available by a generating station which is the subject of that CFD or connected agreement,

the revenue shortfalls of a transport and storage provider and is payable under the CFD or connected agreement to the generating station which is the subject of that CFD or connected agreement;

Section 5 Amendment to regulation 7 (estimated cost, income & electricity supply)

In regulation 7—

(a) for paragraph (2), substitute—

(2) The matters referred to in paragraph (1) are—

(a) the strike prices which, in the opinion of the CFD counterparty, will apply to CFDs during the rate period;

(b) the availability payments related to the amount of low carbon electricity generation capacity availability which, in the opinion of the CFD counterparty, will apply to CFDs during the rate period;

(c) the CFD counterparty’s estimate of—

(i) where payments under a CFD may become due in relation to the generation of electricity in a settlement hour or a settlement period by a CFD generating station, the amount of electricity generated by each such CFD generating station in each settlement hour or settlement period during the rate period;

(ii) where payments under a CFD may become due in relation to the generation capacity made available in a settlement hour or a settlement period by a CFD generating station, the amount of generation capacity made available by each such CFD generating station in each settlement hour or settlement period during the rate period;

(iii) where payments under a CFD may become due in relation to the capital costs or the operational costs of a transport and storage provider in a settlement hour or a settlement period, the amount of those capital costs or operational costs in each settlement hour or settlement period during the rate period;

(iv) where payments under a CFD may become due in relation to the capture of carbon dioxide in a settlement hour or a settlement period by a generating station, the amount of carbon dioxide captured by each such generating station in each settlement hour or settlement period during the rate period;

(v) where payments under a CFD may become due in relation to the carbon dioxide capture capability made available in a settlement hour or a settlement period by a generating station, the amount of carbon dioxide capture capability made available by each such generating station in each settlement hour or settlement period during the rate period;

(vi) where payments under a CFD may become due in relation to the revenue shortfalls of a transport and storage provider in a settlement hour or a settlement period, the amount of those revenue shortfalls in each settlement hour or settlement period during the rate period;

(vii) the market reference price which is to apply in relation to each settlement hour in respect of which a payment may become due during the rate period;

(viii) the market reference price which is to apply in relation to each settlement period in respect of which a payment may become due during the rate period;

(b) in paragraph (3), in sub-paragraph (a), omit “(a) and (b)(i) to (iv)”;

(c) in paragraph (5)—

(i) for the definition of “TCPR”, substitute—

“ TCPR ” means the sum of all CP paid to the CFD counterparty during the rate period in respect of—

electricity generation;

electricity generation capacity made available;

transport and storage capital costs or operational costs;

carbon dioxide captured;

carbon dioxide capture capability made available;

transport and storage revenue shortfalls;

(ii) for the definition of “TGPR”, substitute—

“ TGPR ” means the sum of all GP required to be paid by the CFD counterparty during the rate period in respect of—

electricity generation;

electricity generation capacity made available;

transport and storage capital costs or operational costs;

carbon dioxide captured;

carbon dioxide capture capability made available;

transport and storage revenue shortfalls;