The Electricity Capacity (No. 1) Regulations 2019

Calculation of amounts: modifications

63.  Schedule 1 (calculation of amounts) to the Supplier Payment Regulations applies as if—

(a) in paragraph 2 (provisional annual calculations)—

(i) in sub-paragraph (1), “no later than three months” were omitted; and

(ii) in sub-paragraph (5), after “a capacity committed CMU” there were inserted “, including payments that may be prevented from being paid by the law relating to state aid”;

(b) in paragraph 3(5), in the definition of “∑_iACCP_ix”—

(i) after “year X” there were inserted “(including payments that have been or may be prevented from being paid by the law relating to state aid)”;

(ii) in paragraph (a), after “a” there were inserted “conditional capacity agreement or”; and

(iii) in paragraph (b), at the end there were inserted “(capacity payments which will be paid or become payable at a later date if a payment trigger event occurs are not considered reduced or forfeited solely because they cannot be paid or are not payable at the time of the calculation under this paragraph)”;

(c) after paragraph 5 (capacity market supplier charge: mutualisation payments), there were inserted—

“Standstill collection period: mutualisation payments

5A.— (1) If, in respect of the standstill collection period of a delivery year (“collection period X”), one or more electricity suppliers is in post-standstill payment default, the Settlement Body must calculate in accordance with sub-paragraphs (2) and (3) the mutualisation payment to be made by each electricity supplier (“S”) who is not in such default (“MP_scp”).

(2) If the calculation date is before the date on which the Settlement Body makes the calculations required by paragraph 3, then MP_scp must be calculated in accordance with the formula—

(3) If the calculation date is on or after the date on which the Settlement Body makes the calculations required by paragraph 3, then MP_scp must be calculated in accordance with the formula—

(4) If regulation 7A(8) applies in respect of collection period X, the Settlement Body must calculate in accordance with sub-paragraphs (5) and (6) the supplementary mutualisation payment to be made by each electricity supplier (“S”) who is not in post-standstill payment default (“SMP_scp”.

(5) If the calculation date is before the date on which the Settlement Body makes the calculations required by paragraph 3, then SMP_scp must be calculated in accordance with the formula—

(6) If the calculation date is on or after the date on which the Settlement Body makes the calculations required by paragraph 3, then SMP_scp must be calculated in accordance with the formula—

(7) In this paragraph—

“late payment” means a payment in respect of collection period X by an electricity supplier in post-standstill payment default of—

(a)

all or part of the standstill collection period supplier charge invoiced to it;

(b)

all or part of the mutualisation payment invoiced to it; or

(c)

late payment interest on such a charge or payment;

“∑_dLP” means the sum of all late payments in respect of collection period X from electricity suppliers who—

(a)

were in post-standstill payment default when the mutualisation payment in respect of collection period X was calculated; or

(b)

entered into post-standstill payment default in respect of this mutualisation payment;

“PSC_sx” means the amount calculated under paragraph 2(1)(a) for supplier S and year X;

“∑_nPSC_nx” means the sum of the amounts calculated under paragraph 2(1)(a) for year X for every electricity supplier who is not in post-standstill payment default in respect of collection period X;

“RA” means the sum of the residual amounts (if any) determined in respect of collection period X under—

(a)

regulation 40(7)(a) of the Principal Regulations (as modified by Chapter 2 of Part 3 of the Electricity Capacity (No. 1) Regulations 2019); and

(b)

regulation 40A(7)(a) of the Principal Regulations (as modified by Part 5 of the Electricity Capacity (No. 1) Regulations 2019);

“RSC_sx” means the amount calculated under paragraph 3(1)(a) for supplier S and year X (taking into account any revised calculations under this paragraph required by regulation 6A(12)(a));

“∑_nRSC_nx” means the sum of the amounts calculated under paragraph 3(1)(a) for year X for every electricity supplier who is not in post-standstill payment default in respect of collection period X (taking into account any revised calculations under this paragraph required by regulation 6A(12)(a));

“∑_dSCPSC_dcp” means the sum of the amount determined under regulation 6A(5)(b) for every electricity supplier who is in post-standstill period payment default in respect of the collection period; and

“year X” means the delivery year in which collection period X falls.”; and

(d) in paragraph 6(3), in the definition of “TPR_x”, at the end there were inserted “(and in respect of the delivery year beginning on 1st October 2019 means this amount after any repayments of overcharged penalty charge by the Settlement Body under regulation 43E of the Principal Regulations (as modified by Part 5 of the Electricity Capacity (No. 1) Regulations 2019) are subtracted)”.