PART 4 Capacity auctions

CHAPTER 5 DSR transitional auctions

29 DSR transitional auctions
1 A “DSR transitional auction” is a capacity auction in which bids may only be made for a one year capacity agreement in respect of—
(a) a demand side response CMU; or
(b) a non-CMRS distribution CMU with a connection capacity not exceeding 50MW.
2 The Delivery Body must hold a DSR transitional auction—
(a) in the auction window commencing on 1st September 2015, for the 2016-17 delivery year; and
(b) in the auction window commencing on 1st September 2016, for the 2017-18 delivery year.
3 Following a DSR transitional auction, a successful bidder must, in accordance with capacity market rules, elect whether to be issued with a capacity agreement for—
(a) a time banded capacity obligation; or
(b) a non-time banded capacity obligation.
4 A time banded capacity obligation is an obligation to provide capacity during such times of the day and such months of a delivery year as are specified in capacity market rules.
5 A non-time banded capacity obligation is an obligation to provide capacity at any time during a delivery year.
6 Capacity payments for a non-time banded capacity obligation are payable at a rate equal to the auction clearing price.
7 Capacity payments for a time banded capacity obligation awarded following the DSR transitional auction held under paragraph (2)(a) are payable at a rate equal to 70% of the auction clearing price.
8 The Secretary of State must determine as an auction parameter the rate, expressed as a percentage of the auction clearing price, at which capacity payments are to be payable for a time banded capacity obligation awarded following the DSR transitional auction held under paragraph (2)(b).
9 The Secretary of State must—
(a) determine the auction parameters under—
(i) regulation 12(1); and
(ii) paragraph (8);
(b) give notice of them to the Delivery Body as soon as reasonably practicable after making those determinations; and
(c) publish the determinations.
10 Chapters 1 to 4 of this Part apply in relation to DSR transitional auctions with the modifications that—
(a) regulation 12 applies as if paragraphs (4), (5)(a) and (b) and (6) were omitted; and
(b) regulation 23 applies as if paragraphs (1)(c) and (2) to (4) were omitted.
11 In this regulation, “non-CMRS distribution CMU” means a CMU consisting of one or more non-CMRS distribution units, within the meaning given in regulation 5(8).