Solon does not know this law's official route yet. The proposal is recorded all the same, and the route appears here once its source is added.
105 provisions
69 Requesting reconsideration by the Delivery Body
(1) An affected person may request the Delivery Body to review a delivery body reviewable decision.
(2) The request must—
(a) be submitted in writing to the Delivery Body within 5 working days after receiving notice of the decision; and
(b) include each of the matters specified in sub-paragraphs (a) to (e) of regulation 70(3).
(3) If the Delivery Body receives a request which complies with paragraph (2), within 20 working days of giving notice of the decision it must—
(a) reconsider the matter; and
(b) give notice to the affected person of—
(i) the outcome of the reconsideration (the “reconsidered decision”); and
(ii) the reasons for the reconsidered decision.
(4) The Delivery Body must, within 5 working days after receiving a request which does not comply with paragraph (2), give notice to the affected person that the request is rejected as not complying with that paragraph, and give the reason why.
(5) Subject to paragraph (5A) ... in reconsidering a prequalification decision or a decision to issue a termination notice or a notice of intention to terminate or a decision to issue a CCS CFD transfer refusal notice, the Delivery Body must not take into account any information or evidence which—
(a) the affected person was required by these Regulations or capacity market rules to provide to the Delivery Body before the decision was taken; and
(b) the affected person failed to provide in accordance with that requirement.
(5A) In reconsidering a prequalification decision or a decision to issue a CCS CFD transfer refusal notice, the Delivery Body may take into account information or evidence if the Delivery Body determines that:
(a) the relevant application for prequalification or a CCS CFD transfer notice contained a non-material error or omission; and
(b) the information or evidence is capable of rectifying such non-material error or omission.
(6) Subject to regulations 70 to 72, the reconsidered decision is final.
(7) In this regulation—
“non-material error or omission” means an error or omission in an application for prequalification or a CCS CFD transfer notice which is—
manifest, and either inadvertent or the result of an honest mistake;
clerical, typographical or trivial in nature; or
determined by the Delivery Body to be inconsequential to the affected person’s compliance with, or the enforcement of, any requirement in these Regulations or the Rules to which the error or omission relates.
(1) An affected person who has, in accordance with regulation 69(2), made a request to the Delivery Body to review a delivery body reviewable decision, may appeal to the Authority if—
(a) the affected person disputes the reconsidered decision; or
(b) the request for reconsideration was rejected by the Delivery Body on the ground that it did not comply with regulation 69(2).
(2) An appeal under paragraph (1) must be made by submitting an appeal notice to the Authority within 5 working days after the date on which the affected person received the notice from the Delivery Body under regulation 69(3) or (4).
(3) An appeal notice must contain—
(a) a concise statement identifying the relevant part of the delivery body reviewable decision in dispute;
(b) a concise statement of the facts on which the affected person relies;
(c) a summary of the grounds for disputing the delivery body reviewable decision;
(d) a succinct presentation of the arguments supporting each of the grounds for dispute; and
(e) a schedule listing the documents submitted with the appeal notice.
(4) The appeal notice must be accompanied by—
(a) a copy of—
(i) the notice given by the Delivery Body under regulation 69(3) or (4);
(ii) the request made to the Delivery Body for reconsideration; and
(iii) any information or evidence submitted to the Delivery Body in support of that request;
(b) in the case of an appeal relating to a prequalification decision, a copy of—
(i) the prequalification decision; ...
(ii) any information or documents provided by the affected person to the Delivery Body as part of the application for prequalification which are relevant to the matter in dispute; and
(iii) any information or evidence submitted in accordance with regulation 69(5A);
(c) in the case of an appeal relating to a termination notice , a CCS CFD transfer refusal notice or a notice of intention to terminate, a copy of—
(i) the notice; and
(ii) any information or documents provided by the affected person to the Delivery Body before the notice was issued, which are relevant to the matter in dispute; ...
(ca) in the case of an appeal relating to a low emissions determination, a copy of—
(i) the notice setting out the determination; and
(ii) any notice that the Rules required to be given before the low emissions determination was made; and
(d) any other documentary evidence which the affected person wishes to rely on in support of the appeal and which—
(i) was provided to the Delivery Body before the reconsidered decision was made; or
(ii) is needed to show what evidence was before the Delivery Body when the reconsidered decision was made.
(5) Where a request for reconsideration was rejected by the Delivery Body on the ground that it did not comply with regulation 69(2), the affected person may submit evidence to the Authority that the request did comply with that regulation.
(6) Except as provided in paragraphs (4) and (5), no other documentary evidence may be included in or submitted with the appeal notice.
(1) The Authority—
(a) must notify the Delivery Body when it receives an appeal notice under regulation 70; and
(b) may request the Delivery Body to provide it with any information relating to the disputed decision which the Authority considers necessary to enable it to determine the appeal.
(2) The Delivery Body must provide to the Authority such of the information requested under paragraph (1)(b) as it holds within 5 working days of receiving the Authority's request.
(3) Upon receiving an appeal notice which complies with regulation 70, and any information requested from the Delivery Body, the Authority must—
(a) subject to paragraph (4), review the reconsidered decision;
(b) determine whether the reconsidered decision was correct on the basis of the information which the Delivery Body had when it made the decision.
(4) In a determination under paragraph (3)(b)—
(a) the Authority must uphold the reconsidered decision if the Authority determines that it was correct on the basis described in paragraph (3)(b);
(b) if the Authority determines that the Delivery Body incorrectly decided not to prequalify the applicant for a capacity auction in respect of a CMU, it must direct the Delivery Body to register the CMU on the capacity market register as a prequalified CMU (in which case regulation 73 applies);
(c) in any other case, if the Authority determines that the Delivery Body's decision was incorrect it must substitute the decision that it considers the Delivery Body should have made.
(5) The Authority must give notice of its determination to the affected person, the Delivery Body and the Settlement Body.
(6) The Authority may, to assist it in determining an appeal, appoint a person independent of the Delivery Body and the affected person to consider the appeal or any matter relating to it and provide a report to the Authority; but the Authority remains responsible for determining the appeal.
(7) If the Authority determines that the Delivery Body incorrectly rejected a request for reconsideration of a decision as mentioned in regulation 70(5)—
(a) the Authority must remit the request to the Delivery Body and direct the Delivery Body to reconsider the decision in accordance with regulation 69; and
(b) the Delivery Body must comply with the direction.
(1) An affected person may appeal to the court against a determination under regulation 71.
(2) In paragraph (1), “the court” means—
(a) the High Court; or
(b) in Scotland, the Court of Session.
(3) An appeal under paragraph (1)—
(a) may only be made on a point of law; and
(b) must be brought within 28 days after the date of the determination.
(4) On an appeal relating to a prequalification decision in respect of a CMU the court may—
(a) dismiss the appeal;
(b) direct the Delivery Body to register the CMU on the capacity market register as a prequalified CMU (in which case regulation 73 applies); or
(c) remit the matter to the Delivery Body with a direction to reconsider it and make a new decision in accordance with the findings of the court.
(5) On an appeal relating to any other decision, the court may—
(a) dismiss the appeal; or
(b) remit the matter to the Delivery Body with a direction to reconsider it and make a new decision in accordance with the findings of the court.
(6) The court may not—
(a) order a capacity auction to be cancelled, postponed or suspended pending the determination of an appeal; or
(b) make an order which affects the validity or terms of a capacity agreement that has accrued to any person other than the appellant.
(1) Paragraph (2) applies if the Delivery Body—
(a) makes a reconsidered decision under regulation 69;
(b) receives notice of a decision of the Authority or the court under this Chapter; or
(c) makes a redetermination pursuant to a direction by the Authority or the court under this Chapter.
(2) The Delivery Body must as soon as reasonably practicable—
(a) make any amendment to the capacity market register required by, or in consequence of, the decision or redetermination; and
(b) give notice to the affected person of any amendment made to the capacity market register.
(3) Paragraphs (4) to (7) apply if, pursuant to paragraph (2)(a), the Delivery Body registers a CMU on the capacity market register as a prequalified CMU.
(4) If the registration is made not less than 11 working days before the start of the relevant capacity auction, the Delivery Body must permit the applicant to bid in the capacity auction in respect of the CMU.
(5) If—
(a) the registration is made after, or less than 11 working days before, the start of the relevant capacity auction; and
(b) the capacity auction is held and is not annulled,
the Delivery Body must offer to the applicant a capacity agreement in respect of the CMU on terms in accordance with paragraph (6).
(6) A capacity agreement offered under paragraph (5) must be—
(a) at the capacity cleared price which would have applied to the CMU if a successful bid had been made in the relevant capacity auction in respect of the CMU;
(b) for—
(i) the de-rated capacity of the CMU (which, if not previously determined, must be determined by the Delivery Body in accordance with capacity market rules); ...
(ii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(c) for the number of delivery years which it appears to the Delivery Body that the applicant is entitled to a capacity agreement under capacity market rules.
(6A) In the case of a demand side response CMU, the applicant may nominate in accordance with capacity market rules the capacity in respect of which it wishes to be offered a capacity agreement and, where it does so—
(a) that is the capacity which is to be used to determine the de-rated capacity of the CMU for the purposes of paragraph (6)(b), and
(b) the de-rated capacity so determined is the de-rated capacity which applies for the purposes of regulations 32 and 60.
(7) An applicant which receives an offer of a capacity agreement under paragraph (5)—
(a) must within 5 working days give notice to the Delivery Body of whether it accepts the offer; and
(b) is not entitled to any other remedy if it does not accept the offer within that time.
(1) Subject to paragraph (2), a disputing party may use the procedure in this Chapter to dispute any calculation or determination made by the Settlement Body under Part 6 or 7.
(2) The procedure in this Chapter may not be used to dispute the correctness of any data used in making a calculation or determination, which has been provided to the Settlement Body by another person under these Regulations or capacity market rules, except for non-BSC data provided by a capacity provider.
(3) In this Chapter, “disputing party” means, as appropriate, a supplier or a capacity provider.
(4) In paragraph (2), “non-BSC data” means data provided by or on behalf of a capacity provider which is not provided under the Balancing and Settlement Code, irrespective of whether the capacity provider is a party to the Balancing and Settlement Code.
(1) A disputing party may give a notice (“a disputes notice”) to the Settlement Body of a dispute.
(2) A disputes notice must—
(a) set out the matters giving rise to the dispute and the outcome sought by the disputing party; and
(b) be given not later than 28 days after the disputing party receives notice of the calculation or determination giving rise to the dispute.
(1) After receiving a disputes notice which complies with regulation 75(2), the Settlement Body must, subject to paragraph (2), review the disputed calculation or determination, and decide whether to uphold it or to substitute a different calculation or determination.
(2) The Settlement Body may, to assist in determining a dispute, appoint an independent person to consider the matter in dispute and provide a report on the matter, or an audit of any disputed calculation.
(3) The Settlement Body must, as soon as reasonably practicable after receiving a disputes notice, give notice to the disputing party whether it—
(a) is considering the disputed matter;
(b) has appointed an independent person to consider the disputed matter under paragraph (2); or
(c) has rejected the disputes notice on the ground that it does not comply with regulation 75(2).
(4) The Settlement Body must determine a dispute—
(a) where it commissions a report or audit under paragraph (2), not later than 28 days after receiving the report or audit; and
(b) in any other case, not later than 28 days after receiving the disputes notice.
(5) The Settlement Body must as soon as reasonably practicable after determining a dispute give a notice to the disputing party of its decision and the reason for that decision.
(6) The references in this regulation to “an independent person” include a panel of persons, either—
(a) established under an industry code; or
(b) appointed by the Settlement Body for the purpose of considering disputes under this Chapter,
provided that all the panel members who consider the dispute are independent from the Settlement Body and the disputing party.
77 Authority's power to make capacity market rules
(1) The Authority may make capacity market rules about the operation and administration of the capacity market.
(2) The power in paragraph (1)—
(a) includes power to amend, add to, revoke or substitute any provision of the Rules; and
(b) includes power to specify that an obligation in capacity market rules made by the Authority is enforceable as if it were a relevant requirement on a regulated person for the purposes of section 25 of EA 1989 (whether or not the person on whom a requirement is imposed is in fact a regulated person within the meaning of EA 1989).
(3) But the Authority must not—
(a) make any provision in capacity market rules which is inconsistent with these Regulations or the Supplier Payment Regulations; or
(b) except with the approval of the Secretary of State, make, amend or revoke any provision in capacity market rules which confers functions on—
(i) the Secretary of State; or
(ii) the Authority.
The Authority must when making capacity market rules, in addition to having regard to its principal objective and general duties, have regard to the following objectives—
(a) promoting investment in capacity to ensure security of electricity supply;
(b) facilitating the efficient operation and administration of the capacity market;
(c) ensuring the compatibility of capacity market rules with other subordinate legislation under Part 2 of the Act.
(1) Before making capacity market rules the Authority must consult—
(a) the Secretary of State;
(b) the Delivery Body;
(c) any person who is a holder of a licence to supply electricity under section 6(1)(d) of EA 89;
(d) any person who is a capacity provider; and
(e) such other persons as the Authority considers it appropriate to consult.
(2) Paragraph (3) applies where any proposal to amend a provision of capacity market rules is made to the Authority by—
(a) a person mentioned in paragraph (1)(a) to (d);
(b) an applicant, or a person wishing to apply to bid in a capacity auction; or
(c) a representative body representing persons mentioned in paragraph (1)(c) or (d) or any other class of persons which, in the Authority's opinion, has a sufficient interest in the capacity market.
(3) The Authority must—
(a) consider the proposal; and
(b) either—
(i) consult in accordance with paragraph (1) on whether to make the proposed amendment; or
(ii) publish its reasons for rejecting the proposal without consulting on it.
(1) The Secretary of State must, as soon as reasonably practicable after this regulation comes into force, appoint a person to be the Settlement Body.
(2) The Secretary of State may terminate the appointment of a person as Settlement Body.
(3) If the Secretary of State terminates the appointment of a person (“A”) as Settlement Body, the Secretary of State must—
(a) as soon as reasonably practicable, appoint another person (“B”) to that position; and
(b) make arrangements to ensure that any funds held by A under these Regulations or the Supplier Payment Regulations are transferred to B.
(4) The Secretary of State must give notice to—
(a) each capacity provider;
(b) each electricity supplier; and
(c) the other administrative parties,
of an appointment, or the termination of an appointment, under paragraph (1), (2) or (3)(a).
(1) The Secretary of State must from time to time—
(a) carry out a review of—
(i) these Regulations and the Supplier Payment Regulations; ...
(ii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b) set out the conclusions in a report; and
(c) publish the report.
(2) The report must in particular—
(a) set out the objectives intended to be achieved by these Regulations and the Supplier Payment Regulations;
(b) assess the extent to which those objectives are achieved; and
(c) assess whether those objectives remain appropriate and, if so, the extent to which they could be achieved in a less burdensome way.
(3) The first report under this regulation must be published before the end of the period of five years beginning with the date on which these Regulations come into force.
(4) Reports under this regulation are, after the first report, to be published at intervals not exceeding five years.
(5) In carrying out the review under paragraph (1)(a), the Secretary of State must take account of any reports published by the Authority under regulation 82 or provided to the Secretary of State under regulation 83.
(1) The Authority must—
(a) provide the Secretary of State with an annual report on—
(i) the operation of the capacity market; and
(ii) the Delivery Body's performance of its functions in relation to the capacity market; and
(b) publish the report.
(2) The annual report must also include a report on any particular matters specified in a notice given by the Secretary of State to the Authority.
(3) The Secretary of State must give any notice to the Authority under paragraph (2) not later than 3 months before the date by which the Authority is required to provide the annual report.
(4) The first report under this regulation must be provided to the Secretary of State by no later than 6 months after the completion of the first capacity auction.
(5) Reports under this regulation are afterwards to be provided to the Secretary of State—
(a) by no later than 6 months after the completion of each T-4 auction; and
(b) if no T-4 auction is held in a capacity year, by no later than 6 months after the end of that capacity year.
(1) The Settlement Body must, in respect of each capacity year which commences after this regulation comes into force, produce an annual report on its performance of its functions.
(2) The Settlement Body must, not later than 3 months after the end of the capacity year to which it relates—
(a) provide the report to the Secretary of State; and
(b) publish the report.
(1) Paragraph (2) applies to—
(a) the national system operator;
(b) any director of the national system operator; and
(c) any employee, officer or agent of the national system operator.
(2) Subject to paragraph (3), a person to whom this paragraph applies is not liable in damages for anything done or omitted to be done in the exercise or purported exercise of the national system operator's functions under—
(a) these Regulations; or
(b) capacity market rules.
(3) The exclusion of liability in paragraph (2) does not—
(a) apply where the act or omission occurs in bad faith, including where the act or omission—
(i) constitutes a tort which involved a wilful act or omission calculated to cause harm or loss to another person; or
(ii) is fraudulent;
(b) prevent an award of damages in respect of an act or omission which is—
(i) unlawful by virtue of section 6(1) of the Human Rights Act 1998 ;
(ii) a breach of a duty owed by virtue of section 27(4) of EA 1989;
(iii) a criminal offence;
(iv) an infringement of a person's intellectual property rights;
(v) a breach of confidentiality, whether statutory or at common law; or
(vi) a breach of contract.
(1) This regulation applies if the Secretary of State determines ... that the T-3 auction is to be held.
(2) Where this regulation applies—
(a) references to a T-4 auction in regulations ... 31(2)(e), ... 59(2)(a), 60(2)(a) and Schedule 1 are treated as including the T-3 auction;
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(c) regulation 59 (requirement to provide applicant credit cover) applies—
(i) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(ii) in relation to credit cover provided in respect of the T-3 auction and the subsequent T-4 auction as if for paragraphs (2A) and (2B) there were substituted—
(2A) Paragraph (2B) applies where an applicant for the T-3 auction and the subsequent T-4 auction is required to provide applicant credit cover in respect of the same CMU (“CMU i”) for both auctions in accordance with this regulation.
(2B) Where this paragraph applies—
(a) the applicant may satisfy their obligation to provide credit cover in respect of CMU i for both auctions by providing credit cover of an amount equal to the greater of the amounts determined under paragraph (2)(a) in respect of—
(i) the T-3 auction; and
(ii) the subsequent T-4 auction;
(b) credit cover provided in accordance with sub-paragraph (a) may be drawn down under regulation 61(1) in relation to a capacity agreement awarded in either of the auctions referred to in sub-paragraph (a); and
(c) notwithstanding paragraph (1)(h) or (3) of regulation 60, any credit cover drawn down in relation to a capacity agreement awarded in either of the auctions referred to in sub-paragraph (a) must be replaced in accordance with the obligation under regulation 60(1) to maintain credit cover in respect of the other auction.
;
(d) regulation 60 (credit obligation period) applies in respect of the T-3 auction and the subsequent T-4 auction as if—
(i) before paragraph (1)(a) there were inserted—
(aa) where credit cover provided by A in respect of CMU i for an auction (“auction X”) also satisfies A’s obligation to provide credit cover in respect of CMU i for another auction because regulation 59(2B) applies and an event in sub-paragraph (b) to (h) has occurred in respect of the other auction;
;
(ii) after paragraph (1) there were inserted—
(1A) Where paragraph (1)(aa) applies, A must thereafter maintain credit cover in respect of auction X in an amount equal to—
(a) the amount calculated under regulation 59(2)(a) in respect of A’s application to prequalify for auction X in respect of CMU i; or
(b) where paragraph (1)(a) applies, the amount calculated under paragraph (2) in respect of CMU i and auction X,
until the earliest of the events in sub-paragraphs (b) to (h) of paragraph (1) has occurred in respect of auction X.
; and
(iii) after paragraph (4) there were inserted—
(4C) Paragraphs (1) to (4) are subject to paragraph (4D).
(4D) Where regulation 59(2B) applies, A is required to maintain credit cover in the amount equal to the greater of the amounts A is required to maintain in respect of CMU i under this regulation in relation to—
(a) the T-3 auction; and
(b) the subsequent T-4 auction,
until the applicant is no longer required to maintain credit cover in respect of CMU i in relation to either auction.
; and
(e) regulation 69(3) applies to requests for review of prequalification decisions for—
(i) the T-1 auction for the delivery year commencing on 1st October 2020;
(ii) the T-3 auction; and
(iii) the subsequent T-4 auction,
as if for “15” there were substituted “20”.
(3) In this regulation “subsequent T-4 auction” means the T-4 auction for the delivery year commencing on 1st October 2023.
Regulation 36
Interpretation
1 (1) In this Schedule—
“AEij”, “ALFCOij” and “Eij”, in relation to a capacity committed CMU i and a relevant settlement period j, are to be interpreted in accordance with regulation 39 and mean the amounts determined in accordance with that regulation;
“COix” means the capacity obligation in MW, as recorded on the capacity market register, awarded in respect of CMU i for year X in a capacity auction;
“ICOij” means the whole or part of any capacity obligation COzx in MW, as recorded on the capacity market register, which applies to CMU i in relevant settlement period j;
“WFmx” means the weighting factor determined under paragraph 2 for month M in capacity year X.
(2) Where, in a formula, two values in parentheses are separated by a comma and preceded by “min”, that means that the lesser of those two values is to be used in making the calculation.
(3) Where, in a formula, the symbol ∑ is used, it denotes that a value is to be determined from the summation of the sequence of elements found immediately to its right; these elements may be derived from one variable or a collection of variables contained in parentheses.
(4) In this Schedule, if not otherwise defined, subscript suffixes used in a term refer to the following things unless the context requires otherwise—
“i” refers to a specific CMU which is the subject of the provision the term appears in (“the relevant provision”);
“j” refers to a relevant settlement period which is the subject of the relevant provision;
“k” refers to any relevant settlement periods in a given month that precede the relevant settlement period which is the subject of the relevant provision;
“m” refers to a given month;
“y” refers to any capacity obligation awarded in a capacity auction in respect of a CMU; and
“z” refers to a specific capacity obligation awarded in a capacity auction in respect of a CMU.
Weighting factor
2 (1) The Settlement Body must, by no later than 3 months before the commencement of a capacity year (“year X”), calculate in respect of each month of year X (“month M”) the weighting factor (“WFmx”) which is to be used for the purpose of calculating capacity payments in respect of that month.
(2) WFmxmust be calculated to 10 decimal places in accordance with the formula—
W
F
m
x
=
A
B
.
(3) In this paragraph—
“A” means the sum of the amounts of electrical demand in GWh in Great Britain during each of the months corresponding to month M in the calculation period;
“B” means the sum of the amounts of electrical demand in GWh in Great Britain during the calculation period;
“the calculation period” means the period of 3 years ending on the last day of the month preceding the month in which WFmx is calculated.
Capacity payments: calculations to be made annually for each capacity committed CMU
3 (1) The Settlement Body must, by no later than 3 months before the commencement of a delivery year (“year X”), calculate in respect of each capacity committed CMU (“CMU i”)—
(a) the total amount in pounds of the capacity payments which, subject to regulation 40(5) and (6) and to regulations 49 to 51, are payable in respect of COix (“ACPix”); and
(b) in respect of each month of year X (“month M”), the amount in pounds of the capacity payment which, subject to those regulations, is payable in respect of CMU i for that month (“MCPim”).
(2) ACPyx (for any value y) must be calculated in accordance with the formula—
ACPyx=COyx×PEyx.
(3) MCPim must be calculated in accordance with the formula—
MCPim=WFmx×(ACPix+∑NtACPN×DTmNDm).
(3A) For the purpose of sub-paragraph (3) tACPN is the amount ACPzx×tICOiNCOzx,
where—
“tICOiN” is any obligation, being the whole or part of the capacity obligation COzx, that has been transferred so as to—
apply to CMU i for all or part of month M, or
cease to apply to CMU i for all or part of month M (in which case tACPN is to be expressed as a negative number);
“DTmN” means the number of days in month M for which that capacity obligation has been transferred;
“Dm” means the total number of days in month M.
(4) For the purpose of sub-paragraph (2), “PEyx” means the price in pounds per MW at which capacity payments are payable in respect of COyx, which is to be determined in accordance with sub-paragraph (5).
(5) If the relevant capacity auction was a T-4 auction, PEix is to be calculated in accordance with the formula—
P
E
i
x
=
C
C
P
i
×
C
P
I
x
C
P
I
b
a
s
e
.
(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(7) In this paragraph—
“CCPy” means the capacity cleared price for COyx, as recorded on the capacity market register
...
“CPIbase” means the average of the monthly values of CPI for the months of the base period referred to in regulation 11 for the relevant capacity auction;
“CPIx” means the average of the monthly values of CPI for the months of the winter ending on the 30th April preceding the start of year X;
“relevant capacity auction” means the capacity auction in which COyx was awarded;
...
Capacity payments: calculations to be made monthly for each capacity provider
4 (1) The Settlement Body must, after the end of each month of a delivery year (“month M”), calculate for each capacity provider (“C”) the amount in pounds of the capacity payment which, subject to regulation 40(5) and (6) and to regulations 49 to 51, is payable to C in respect of month M (“MCPcm”).
(2) MCPcmmust be calculated as the sum of—
(a) MCPim, as calculated under paragraph 3, for each capacity committed CMU for which C was the capacity provider for the whole of month M; and
(b) C’s proportion of MCPim, as calculated under paragraphs 3 and 8, for each capacity committed CMU for which C was the capacity provider for part of month M.
Capacity provider penalty charges: calculation of settlement period penalty applying to a capacity committed CMU
5 (1) The Settlement Body must, after the end of each month of a delivery year (“year X”) in which one or more relevant settlement periods occur (“month M”), calculate in respect of each relevant CMU (“CMU i”) and each relevant settlement period (“settlement period j”) the settlement period penalty in pounds applying to CMU i in respect of settlement period j (“SPPij”).
(2) SPPijmust be calculated in accordance with the formula—
S
P
P
i
j
=
P
R
i
x
×
(
A
L
F
C
O
i
j
−
A
E
i
j
)
.
(2A) For the purpose of sub-paragraph (2), “PRij” is the penalty rate in pounds per MWh applying to CMU i in respect of settlement period j, and is to be calculated in accordance with the formula—
PR=ij∑(PR×NICOijN)N∑INCOijN
where—
“ICOijN” is the whole or a part of any capacity obligation COzx applying to CMU i in settlement period j, and
“PRN” is the penalty rate applying to that capacity obligation.
(3) For the purpose of sub-paragraph (2A), PRN is to be calculated in accordance with the formula—
PRN=PEzx×(124).
(4) In this paragraph—
“PEzx” means the price in pounds per MW determined for COzx in accordance with paragraph 3(4) to (5)
“relevant CMU” means a capacity committed CMU in respect of which AEij is less than ALFCOij in one or more relevant settlement periods in month M.
Capacity provider penalty charges: calculation of monthly penalty charge for a capacity committed CMU
6 (1) The Settlement Body must, after the end of each month of a delivery year (“year X”) in which one or more relevant settlement periods occur (“month M”), calculate for each relevant CMU (“CMU i”)—
(a) for each relevant settlement period in month M (“settlement period j”), the settlement period penalty settlement amount for CMU i in settlement period j (“SPPSAij”); and
(b) the monthly penalty charge to be paid in respect of month M (“MPSAim”).
(2) For the purpose of sub-paragraph (1)—
(a) SPPSAij is—
(i) equal to the amount Pij (calculated in accordance with paragraph (3)) unless paragraph (2A) applies; and
(ii) equal to the lesser of the amount Pij and the amount Qij (calculated in accordance with paragraph (5)) if paragraph (2A) applies; and
(b) MPSAim is equal to the value of SPPSAij for the last relevant settlement period j in month M in which the value of ALFCOij for CMU i was greater than zero.
(2A) This paragraph applies where—
(a) a capacity provider penalty charge has been incurred in respect of CMU i in at least 48 relevant settlement periods, and
(b) those periods together comprise at least 8 relevant settlement periods in each of at least 6 months in delivery year X.
(3) Pij must be calculated in accordance with the formula—
Pij=(SPiMaxSPi)×min(MaxSPi,MPCij).
(4) For the purposes of the calculation in sub-paragraph (3), MPCij is the monthly penalty cap in pounds applying to CMU i in respect of relevant settlement period j in month M, and is to be calculated in accordance with the formula—
MPCij=RMCPij+∑ASPPA′
where—
(a) RMCPij is to be calculated in accordance with the formula—
RMCPij=(ACPix×WFmx×Fi)+∑N(tACPN×WFmx×Fz), and
(b) ∑ASPPA′ is to be calculated in accordance with the formula—
∑ASPPA′=∑AASPPAA−∑BASPPAB
where—
(i) ∑AASPPAA is the sum of each amount ASPPAikA calculated under paragraph 6A(4) for any obligation ICOikA applying to CMU i in any relevant settlement period k in month M preceding settlement period j; and
(ii) ∑BASPPAB is the sum of each amount ASPPAijB calculated under paragraph 6A(4) for any obligation ICOijB applying to CMU i in both—
(aa) settlement period j, and
(bb) any relevant settlement period k in month M preceding settlement period j.
(5) Qijmust be calculated in accordance with the formula—
Qij=APCij−∑k=1m−1MPSAik
and where that calculation would give a negative number, the value of Qij is to be taken to be zero.
(5A) For the purposes of the calculation in sub-paragraph (5), APCij is the annual penalty cap in pounds applying to CMU i in respect of relevant settlement period j, and is to be calculated in accordance with the formula—
APCij=ACPix×Gi+∑N(tACPN×Gz×WFmx×DTmNDm),
where “DTmN” and “Dm” have the meanings given in paragraph 3(3A)
(6) In this paragraph—
...
“ACPix” means the amount of annual capacity payments calculated under paragraph 3 for CMU i in respect of year X;
“Fy” (for any value y) means the percentage stated on the capacity market register under regulation 31(2)(f), at the date of issue of the capacity agreement, as the monthly penalty cap percentage for the capacity obligation COyx awarded in respect of CMU y for year X;
“Gy” (for any value y) means the percentage stated on the capacity market register under regulation 31(2)(f), at the date of issue of the capacity agreement, as the annual penalty cap percentage for the capacity obligation COyx awarded in respect of CMU y for year X;
“MaxSPi” is the sum in pounds of all settlement period penalties which would have applied to CMU i in respect of relevant settlement periods in month M, as calculated in accordance with paragraph 5 up to and including the settlement period for which the calculation is being made, if AEij had been 0 for all such settlement periods;
“MCPim” means the amount of the monthly capacity payment calculated under paragraph 3 for CMU i and month M;
“∑k=1m−1MPSAik”
means the sum of the monthly penalty charges paid or payable in respect of CMU i for each of the months of year X preceding month M (or where M is the first such month, zero); and
“relevant CMU” has the same meaning as in paragraph 5;
“SPi” is the sum of all settlement period penalties applying to CMU i in respect of relevant settlement periods in month M, as calculated in accordance with paragraph 5 up to and including the settlement period for which the calculation is being made;
...
“tACPN” has the meaning given in paragraph 3(3A)
Capacity provider penalty charges: apportionment
6A. (1) Immediately after calculating SPPSAij for a relevant CMU i and any relevant settlement period j in month M under paragraph 6, the settlement body must also calculate D in accordance with the formula—
D=SPPSAij−SPPSAi(j−1),
where “SPPSAi(j-1)” is the settlement period penalty settlement amount for CMU i in the relevant settlement period preceding period j (or, where j is the first such period in month M, zero).
(2) For each relevant settlement period j in month M, the settlement body must then determine for each obligation ICOij applying to CMU i in that settlement period (“ICOijN”)—
(a) the monthly penalty cap applying in respect of ICOijN (“MPCijN”); and
(b) the apportioned settlement period penalty amount for ICOijN (“ASPPAijN”) as determined in accordance with sub-paragraph (4).
(3) For the purpose of sub-paragraph (2)(a), MPCijN is to be determined in accordance with the formula—
MPCijN=ICOijN×PEzx×WFmx×Fz−∑k=1j−1ASPPAikN,
where—
“ICOijN” is the whole or a part of the capacity obligation COzx awarded in respect of CMU z for year X,
“PEzx” means the price in pounds per MW determined for COzx in accordance with paragraph 3(4) to (6),
“Fz” is to be interpreted in accordance with paragraph 6(6), and
“∑k=1j−1ASPPAikN”
means the sum of all apportioned settlement period penalty amounts calculated for ICOijN when that obligation applies to CMU i in any relevant settlement period in month M that precedes period j (or, where j is the first such period, zero).
(4) For the purpose of sub-paragraph (2)(b) ASPPAijN is to be determined as follows (where D is the result of the calculation referred to in sub-paragraph (1))—
(a) for each obligation ICOijN referred to in sub-paragraph (2), calculate PRN in accordance with paragraph 5(3), and arrange those obligations in a series (beginning with ICOij1) as described in paragraph (b);
(b) each such obligation ICOijN is ranked according to the magnitude of its corresponding PRN (in descending order with the highest corresponding penalty rate first), except that where the same penalty rate corresponds to more than one such obligation those obligations are ranked between themselves—
(i) according to the date on which the obligation was awarded in respect of CMU i, or transferred so as to apply to CMU i (with the latest such date first), and
(ii) for obligations awarded or transferred on the same date, according to the time at which a request to transfer the obligation was received by the Delivery Body (with the latest such time first), and with an awarded obligation ranking prior to any transferred obligation;
(c) then for any such ICOijN—
(i) if∑k=1NMPCijk>D,ASPPA=ijNMPCijN;
(ii) if ∑k=1N−1MPCijk<Dand∑k=1NMPCijk>D,ASPPAijN=D−∑k=1N−1MPCijk; and
(iii) otherwise, ASPPAijN=0.
Over-delivery payments
7 (1) The Settlement Body must, after the end of each delivery year (“year X”), determine for each relevant CMU (“CMU i”)—
(a) the over-delivery rate in £/MWh applying to CMU i in respect of each relevant settlement period in year X (“ODRij”);
(b) the amount in pounds of the over-delivery payment applying to CMU i in respect of each such settlement period in which CMU i over-delivered (“ODPij”); and
(c) the amount in pounds of the total over-delivery payment applying to CMU i in respect of year X (“TODPix”).
(2) Subject to sub-paragraph (2A), ODRij must be calculated in accordance with the formula—
O
D
R
i
x
=
min
(
P
R
i
x
,
T
P
R
x
T
O
D
V
x
)
.
(2A) For the purposes of the calculation in paragraph (2), where the over-delivery payment is to be made to a qualified person who is not a capacity provider in settlement period j, the value of PRij is deemed to be equal to the penalty rate applying to a capacity obligation awarded in the T-4 auction for year X and calculated in accordance with paragraph 5.
(3) ODPijmust be calculated in accordance with the formula—
O
D
P
i
j
=
O
D
R
i
x
×
(
A
E
i
j
−
A
L
F
C
O
i
j
)
.
(4) TODPixmust be calculated as the sum of ODPij for all the relevant settlement periods in year X in which CMU i over-delivered.
(5) For the purposes of this paragraph—
“over-delivered” is to be interpreted in accordance with regulation 42(2);
“PRij” means the penalty rate in pounds per MWh applying to CMU i in respect of settlement period j, as calculated in accordance with paragraph 5
“qualified person” has the meaning given in regulation 42(2);
a “relevant CMU” means a capacity committed CMU in respect of which AEij is greater than ALFCOij in one or more relevant settlement periods in year X;
“TODVx” means the aggregate in MWh of the total amounts over-delivered in year X by all relevant CMUs;
“TPRx” means the total amount of capacity market penalty charge payments received by the Settlement Body in respect of year X.
Apportionment between capacity providers
8 (1) This paragraph applies if—
(a) an amount in pounds (“AC”) has been calculated under paragraph 3(1)(b), 6(1) or 7(1)(c) in respect of a CMU (“CMU i”); and
(b) two or more persons were each registered on the capacity market register as the capacity provider in respect of CMU i for different parts of the period for which the calculation was made.
(2) For each of the persons referred to in sub-paragraph (1)(b) (“CX”), the Settlement Body must calculate CX’s share of AC (“ACcx”).
(3) ACcxmust be calculated in accordance with the formula—
A
C
c
x
=
A
C
×
D
P
c
x
D
P
.
(4) In sub-paragraph (3)—
“DP” means the number of days in the period for which AC was calculated; and
“DPcx” means the number of days during that period for which CX was registered on the capacity market register as the capacity provider in respect of CMU i.
Settlement costs levy: the first levy period
9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Regulation 86
1 The provisions of this Schedule—
(a) apply to a document, which includes an application, notice, invoice or credit note; and
(b) are subject to any specific provisions in these Regulations , the Supplier Payment Regulations or capacity market rules about—
(i) a particular kind of document; or
(ii) the provision of documents by or to a particular person or class of persons.
2 A document must be in writing and dated.
3 A document given to a person on a non-working day is to be treated as given on the next following working day.
4 A document may be given to a person by—
(a) delivering it to that person in person;
(b) leaving it at that person's proper address;
(c) sending it by post or fax to that person's proper address;
(d) sending it by email to that person; or
(e) submitting it by means of a dedicated portal on that person's website.
5 For the purposes of paragraph 4(a) a document is given to—
(a) a body corporate, where it is given to a person having control or management of that body;
(b) a partnership, where it is given to a partner or a person having control or management of the partnership business;
(c) an unincorporated association, where it is given to a person having management responsibilities in respect of the association.
6 For the purposes of paragraph 4(d), a document is given to—
(a) a body corporate, where it is sent to an email address of—
(i) the body corporate; or
(ii) a person having control or management of that body,
where that address is supplied by that body for the conduct of the affairs of that body;
(b) a partnership, where it is sent to an email address of—
(i) the partnership; or
(ii) a partner or a person having control or management of the partnership business,
where that address is supplied by that partnership for the conduct of the affairs of that partnership;
(c) an unincorporated association, where it is sent to an email address of a person having management responsibilities in respect of the association, where that address is supplied by that association for the conduct of the affairs of that association.
7 A person may, in substitution for the proper address which would otherwise apply, specify an address in the United Kingdom at which that person or someone on that person's behalf may be given documents, which address is to be treated instead as that person's proper address.
8 In this Schedule—
“dedicated portal” means a facility on a person's website which is established to allow electronic communication with that person;
“proper address” means in the case of—
a body corporate, the registered office (if it is in the United Kingdom) or the principal office of that body in the United Kingdom;
a partnership, the principal office of the partnership in the United Kingdom;
any other person, that person's last known address, which includes an email address.