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The Contracts for Difference (Allocation) Regulations 2014

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Allocation frameworksE+W+S

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6.—[F1(1) The Secretary of State—

(a)must ensure that one contract allocation framework applies to each allocation round;

(b)may apply a contract allocation framework to more than one allocation round;

(c)may, in relation to [F2an allocation round established by an allocation round notice given before 31st December 2028], apply a sustainable industry reward allocation framework to the allocation round in addition to the contract allocation framework; and

(d)may, if the Secretary of State applies a sustainable industry reward allocation framework to [F3an allocation round established by an allocation round notice given before 31st December 2028, apply that framework to more than one such allocation round].]

(2) [F4A contract allocation framework] must, in respect of the allocation round or rounds to which it applies, set out—

(a)the [F5contract allocation process] which applies to each type of application which may be made; and

(b)each method of calculation which the delivery body must apply to determine—

(i)the applications valuations; and

(ii)the value of an application whilst carrying out the [F5contract allocation process].

[F6(2A) A sustainable industry reward allocation framework must, in respect of the allocation round or rounds to which it applies, set out—

(a)the sustainable industry reward allocation process;

[F7(ab)the classes of eligible generators that will be required, or permitted, to make a sustainable industry reward application;]

(b)how the Secretary of State is to determine the contribution which the [F8sustainable industry reward applicant] is likely to make to the development and sustainability of supply chainsF9...;

(c)a process for review before a final determination is made of the likely contribution referred to in sub-paragraph (b);

(d)the minimum standards of the likely contribution referred to in sub-paragraph (b) which must be met before the Secretary of State may give a sustainable industry reward statement;

(e)the method which the Secretary of State must apply to determine whether a sustainable industry reward may be payable and the amount of that potential reward; and

(f)the method by which the Secretary of State must score and rank sustainable industry reward applications.

(2B) [F10For the purposes of setting out how the determination mentioned in paragraph (2A)(b) is to be made, the Secretary of State must have regard to how the development and sustainability of supply chains is supported by]—

(a)increasing productivity, competitiveness and capacity in supply chains;

(b)encouraging innovation in supply chains;

(c)developing a diverse and skilled workforce [F11, implementing fair work practices] and increasing employment opportunities;

(d)increasing investment in and finding technical solutions to improving infrastructure that is relevant to the generation, storage, demand or use of electricity;

(e)increasing the sustainability of supply chains, in particular—

(i)increasing the long-term economic sustainability of supply chains;

(ii)minimising the negative environmental impacts of supply chains; and

(iii)delivering benefits to the communities in which supply chains operate; and

(f)increasing the investment in deprived areas which results from supply chains.]

(3) To the extent that the [F12contract allocation process] imposes requirements on the delivery body, the Secretary of State must be satisfied that it is reasonable to expect the delivery body to comply with those requirements.

(4) Where the provisions of an allocation framework conflict with the provisions of these Regulations, the latter prevail.

F13(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Commencement Information

I1Reg. 6 in force at 1.8.2014, see reg. 1(1)

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