The Contracts for Difference (Standard Terms) Regulations 2014

Provision to be included in standard terms E+W+S

3.— [F1 (1)] The standard terms issued under section 11(1) of the Act or revised under section 11(2) of the Act must set out—

(a) that where a strike price is higher than a reference price, the CFD counterparty must pay the generator the difference between the strike price and the reference price F2 ...;

[F3 (aa) any circumstances in which the CFD counterparty is not required to pay the generator the amount, or the full amount, specified under paragraph (a);]

(b) that where a reference price is higher than a strike price, the generator must pay the CFD counterparty the difference between the reference price and the strike price;

(c) that the amount payable under paragraph (a) or (b) must be calculated by reference to the amount of low carbon electricity generation produced by a generating facility;

(d) the way in which a reference price is to be determined;

(e) the way in which a strike price is to be adjusted according to inflation;

(f) the way in which the amount of low carbon electricity generation produced by a generating facility is to be determined;

(g) that sums must not be paid by the CFD counterparty under a CFD where those sums are not allocated to that CFD in accordance with the Contracts for Difference (Supplier Obligation) Regulations 2014(1);

(h) which circumstances allow a generator to reduce the capacity of its generating facility;

(i) which changes in law will cause compensation to be payable by one party to the other party or cause a change to a strike price;

(j) the way in which the amount of compensation payable or a change to a strike price under paragraph (i) is to be determined;

[F4 (ja) which circumstances will allow for a payment under a CFD to be adjusted by reference to the generator’s fulfilment, or non-fulfilment, of the obligations set out in a sustainable industry reward statement F5 ...;]

(k) which time limits in a CFD may be extended where force majeure prevents a party from complying with them;

(l) which circumstances require a generator to receive the consent of the CFD counterparty before transferring a CFD or assigning its rights and obligations under a CFD;

(m) the way in which the parties to a CFD may amend a CFD;

(n) a mechanism by which disputes between the parties to a CFD are to be resolved;

(o) which circumstances allow the CFD counterparty to terminate a CFD;

(p) which circumstances require a generator to make a payment to the CFD counterparty following termination of a CFD; and

(q) the way in which the amount payable under paragraph (p) is to be determined.

F6 (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1 Reg. 3 renumbered as reg. 3(1) (20.7.2015) by The Contracts for Difference (Standard Terms) (Amendment) Regulations 2015 (S.I. 2015/1425), regs. 1, 2(2)

F2 Words in reg. 3(1)(a) omitted (1.3.2017) by virtue of The Contracts for Difference (Standard Terms) (Amendment) Regulations 2017 (S.I. 2017/112), regs. 1, 2(3)

F3 Reg. 3(1)(aa) inserted (1.3.2017) by The Contracts for Difference (Standard Terms) (Amendment) Regulations 2017 (S.I. 2017/112), regs. 1, 2(4)

F4 Reg. 3(1)(ja) inserted (13.6.2024) by The Contracts for Difference (Sustainable Industry Rewards) Regulations 2024 (S.I. 2024/710), regs. 1(1), 66

F5 Words in reg. 3(1)(ja) omitted (15.4.2026) by virtue of The Contracts for Difference (Sustainable Industry Rewards and Contract Budget Notice Amendments) Regulations 2026 (S.I. 2026/411), regs. 1(1), 25

F6 Reg. 3(2) omitted (1.3.2017) by virtue of The Contracts for Difference (Standard Terms) (Amendment) Regulations 2017 (S.I. 2017/112), regs. 1, 2(2)

Commencement Information

I1 Reg. 3 in force at 1.8.2014, see reg. 1

(1)

S.I. 2014/2014.