PART 2

Electricity Market Reform
CHAPTER 2

Contracts for Difference

Application of sums held by a CFD counterparty
18
1
Regulations may make provision for apportioning sums—
a
received by a CFD counterparty from electricity suppliers under provision made by virtue of section 9;
b
received by a CFD counterparty under a CFD,
in circumstances where the CFD counterparty is unable fully to meet its liabilities under a CFD.
2
Provision made by virtue of subsection (1) may include provision about the meaning of “unable fully to meet its liabilities under a CFD”.
3
In making provision by virtue of subsection (1) the Secretary of State must have regard to the principle that sums should be apportioned in proportion to the amounts which are owed.
4
Regulations may make provision about the application of sums held by a CFD counterparty.
5
Provision made by virtue of subsection (4) may include provision that sums are to be paid, or not to be paid, into the Consolidated Fund.