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PART 6E+W+SPayments

CHAPTER 1E+W+SGeneral

The settlement calculationsE+W+S

36.—(1) The Settlement Body must make the calculations set out in this Part and Schedule 1 (the “settlement calculations”)—

(a)by such date as may be specified or, where no date is specified, by such time as is necessary to enable the Settlement Body to comply with the regulations in this Part; and

(b)so far as possible, using the required data.

(2) Where, by the time a settlement calculation is to be made, the Settlement Body has not been provided with any required data which is necessary for that calculation, the calculation must be made using the best data available to the Settlement Body.

(3) In this regulation, “required data” means data which is required to be provided to the Settlement Body under capacity market rules.

Data default noticesE+W+S

37.—(1) Where a capacity provider (“C”) fails to comply with a requirement in capacity market rules to provide data to the Settlement Body, the Settlement Body must give a notice to C that C is in default (a “data default notice”).

(2) A data default notice may be varied by the Settlement Body and must be revoked when C has provided all the data required by capacity market rules.

Invoices and credit notes: generalE+W+S

38.—(1) An invoice or credit note issued by the Settlement Body must set out the determination of the amount which the recipient is liable to pay, or is entitled to receive, in such detail as will readily show the recipient how the determination has been made.

(2) An invoice must specify the day by which it is to be paid, which must be not less than 3 working days after the date on which the invoice is issued.

(3) Each electricity supplier and capacity provider must provide the Settlement Body with an address for electronic service of invoices and credit notes.

(4) Where an electricity supplier or a capacity provider has complied with paragraph (3), the Settlement Body must send an invoice or credit note electronically to the address provided.

CHAPTER 2E+W+SCalculations and determinations: capacity providers

Determination of adjusted load-following capacity obligation, net output and adjusted net outputE+W+S

39.—(1) For each relevant settlement period in a month (“month M”), the Settlement Body must determine for each capacity committed CMU—

(a)the adjusted load-following capacity obligation of the CMU in the settlement period ("”);

(b)the net output of the CMU in the settlement period (“”); and

(c)adjusted Eij (“”).

(2) The Settlement Body must make the determinations under paragraph (1) in accordance with capacity market rules.

(3) The determinations under paragraph (1)(a) and (b) must be made by no later than 10 working days after the end of month M.

(4) The determination under paragraph (1)(c) must be made after the close of the volume reallocation window for month M, but by no later than 20 working days after the end of month M.

(5) In this regulation—

“adjusted Eij”, in relation to a capacity committed CMU and a relevant settlement period, means Eij with any adjustment made to it as a result of volume reallocation;

“capacity market volume reallocation notifications” has the meaning given in the Rules;

[F1“net output”, in relation to a demand side response CMU, means DSR volume (as defined in capacity market rules);]

“volume reallocation” means the procedure in capacity market rules by which part of the net output of a F2... CMU in a relevant settlement period may be reallocated to another F2... CMU for the purpose of the settlement calculations; and

“volume reallocation window” means the period during which [F3persons qualified to do so (within the meaning given in regulation 42(2)(c))] may submit capacity market volume reallocation notifications under capacity market rules.

Textual Amendments

Capacity paymentsE+W+S

40.—(1) A capacity provider (“C”) is entitled, subject to paragraphs (5) and (6) and to regulations 49 to 51, to receive from the Settlement Body a capacity payment determined in accordance with this regulation in respect of each month of a delivery year (“month M”) for the capacity committed CMUs for which C was the capacity provider during month M.

(2) The Settlement Body must, after the end of month M—

(a)determine the amount of the capacity payment which is payable to C in respect of month M (“”); and

(b)issue a credit note to C for the amount determined for it.

(3) must be calculated in accordance with paragraph 4 of Schedule 1.

(4) The Settlement Body must issue a credit note to C under paragraph (2)(b)—

(a)by no later than the [F428th] working day after the end of month M; but

(b)if C is liable to pay a capacity provider penalty charge in respect of month M, not earlier than the day after the day by which C is required to pay that charge.

(5) Paragraphs (1) to (4) do not apply unless by the [F526th] working day after the end of month M the Settlement Body has received capacity market supplier charges in respect of month M.

(6) If by the day referred to in paragraph (5) the Settlement Body has received capacity market supplier charges in respect of month M the total of which is less than the sum of for all capacity providers, the amount of each capacity payment which would otherwise be determined under paragraph (2) must be reduced by the same proportion so that the total amount of capacity payments payable to capacity providers is equal to the total amount of capacity market supplier charges received.

(7) In this regulation, “capacity market supplier charges” means charges which electricity suppliers are required to pay under electricity capacity regulations to meet the cost of funding capacity payments.

Textual Amendments

Capacity provider penalty chargesE+W+S

41.—(1) A capacity provider (“C”) must pay to the Settlement Body a capacity provider penalty charge in respect of any month of a delivery year (“month M”) if, in respect of month M, a settlement period penalty applies to one or more capacity committed CMUs for which C was the capacity provider during month M.

(2) If one or more capacity providers are liable to pay a capacity provider penalty charge in respect of month M the Settlement Body must, by no later than the [F635th] working day after the end of month M—

(a)determine the amount, if any, payable by each capacity provider in respect of capacity provider penalty charges incurred in month M; and

(b)issue to each capacity provider which is liable to pay capacity provider penalty charges an invoice for the amount determined for it.

(3) The amount payable by C under paragraph (2)(a) is the sum of—

(a)[F7MPSAim], as calculated under paragraph 6 of Schedule 1, for each capacity committed CMU for which C was registered on the capacity market register as the capacity provider for the whole of month M; and

(b)C’s proportion of [F8MPSAim], as calculated under paragraphs 6 and 8 of Schedule 1, for each capacity committed CMU for which C was registered on the capacity market register as the capacity provider for part of month M.

[F9(3A) The percentages to be included in the capacity market register under regulation 31(2)(f) are—

(a)for the annual penalty cap, 100%; and

(b)for the monthly penalty cap, 200%.]

(4) In paragraph (1), “settlement period penalty” means a penalty calculated under paragraph 5 of Schedule 1.

Textual Amendments

[F10Over-delivery paymentsE+W+S

42.—(1) A person (“P”) is entitled to receive from the Settlement Body an over-delivery payment in respect of a delivery year (“year X”) if—

(a)any capacity committed CMU (“CMU i”) for which P was the capacity provider over-delivered in any relevant settlement period in year X; or

(b)P has made a qualifying delivery in any such settlement period.

(2) For the purposes of this regulation—

(a)CMU i over-delivers in a relevant settlement period j if AEij is greater than ALFCOij in that settlement period;

(b)P makes a qualifying delivery in a relevant settlement period j if—

(i)P was a qualified person (but not a capacity provider) in respect of a CMU (“CMU i”) during that period, and

(ii)in that period, AEij is greater than zero;

(c)a “qualified person” is a person who—

(i)has registered with the delivery body under capacity market rules in respect of a CMU for the purpose of participating in volume reallocation, and

(ii)is an “acceptable transferee” within the meaning of capacity market rules; and

(d)“volume reallocation” has the meaning given in regulation 39(5).

(3) The Settlement Body must, by not later than the 28th working day after the end of year X—

(a)determine the amount, if any, of the payments payable to each person under this regulation in respect of year X; and

(b)issue to each person who is entitled to such a payment a credit note for the amount determined for it.

(4) The amount payable to P under paragraph (3)(a) is the sum of—

(a)TODPix, as calculated in accordance with paragraph 7 of Schedule 1, for each CMU—

(i)for which P was registered on the capacity market register as the capacity provider for the whole of year X, or

(ii)in respect of which P was a qualified person for the whole of year X; and

(b)P’s proportion of TODPix, as calculated in accordance with paragraphs 7 and 8 of Schedule 1, for each CMU—

(i)for which P was registered on the capacity market register as the capacity provider for part of year X, or

(ii)in respect of which P was a qualified person for part of year X.]

Textual Amendments

Termination feesE+W+S

43.—(1) A capacity provider must pay to the Settlement Body a termination fee, by way of a financial penalty, if—

(a)a capacity agreement is terminated on a ground specified in capacity market rules; and

(b)capacity market rules specify that a termination fee is payable in the event of the capacity agreement being terminated on that ground.

[F11(1A) A termination fee is payable in accordance with paragraph (1) if the capacity agreement is terminated in accordance with capacity market rules, notwithstanding that the termination does not take effect until after the expiry of the delivery year, or period of delivery years, to which the capacity agreement relates (“the relevant period”).]

(2) The Settlement Body must, as soon as reasonably practicable after receiving notice of the termination of a capacity agreement on a ground for which a termination fee is payable—

(a)determine the amount in pounds of the termination fee that is payable; and

(b)issue to the capacity provider an invoice for that amount.

F12(3) Where capacity market rules specify that [F13TFx is payable (for any value of x from x = 1 to x = 5)], the amount must be determined in accordance with the formula—

F14(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) In this regulation—

“CO” means the capacity obligation in MW for which the capacity agreement was issued, as specified in the capacity market register;

[F15“TFxrate” (for any value of x from x = 1 to x = 5) means the rate in pounds per MW determined in accordance with regulation 32 and specified on the capacity market register as the rate at which TFx is payable under the capacity agreement.]

[F16(6) In this regulation, references to the termination of a capacity agreement include references to the termination of a transferred part; and for that purpose—

(a)the reference to the relevant period in paragraph (1A) is to be construed as a reference to the transfer period as defined in regulation 30A(1)(b); and

(b)“CO” in paragraph (5) means the capacity obligation in MW comprised in that transferred part as specified on the capacity market register.]

Textual Amendments

[F17Termination fees: adjustment for DSR providersE+W+S

43ZA.—(1) This regulation applies where—

(a)a termination fee is payable by a DSR provider;

(b)before that termination fee became payable, the Settlement Body had drawn down applicant credit cover provided by the DSR provider in accordance with regulation 60(3) or regulation 61(1)(a)(ii);

(c)the termination fee and the applicant credit cover relate to the same unproven demand side response CMU; and

(d)either—

(i)the termination fee and the applicant credit cover relate to the same capacity auction; or

(ii)the termination fee relates to a capacity auction for which no further applicant credit cover was required to be provided because of regulation 59(1B).

(2) The amount of the termination fee to be determined and invoiced under regulation 43 is reduced by the amount of the credit cover drawn down.]

Textual Amendments

[F18Non-completion feeE+W+S

43A.—(1) A capacity provider in respect of a new build interconnector CMU must pay to the Settlement Body a fee (a “non-completion fee”) by way of a financial penalty if, in circumstances specified for the purposes of this regulation by capacity market rules, the capacity provider fails to meet the completion requirements of the capacity agreement.

(2) For the purposes of paragraph (1)—

“completion requirements” are requirements to reach a level of operational capability specified in capacity market rules by the end of a delivery year;

“new build interconnector CMU” means a prospective interconnector CMU which has not been commissioned.

(3) The Settlement Body must, as soon as reasonably practicable after receiving notice in accordance with capacity market rules of the imposition of a non-completion fee—

(a)determine the amount in pounds of the non-completion fee that is payable; and

(b)issue to the capacity provider an invoice for that amount.

(4) Paragraphs (3) to (5) of regulation 43 apply to the determination of the amount of a non-completion fee as they apply to the determination of the amount of a termination fee.

(5) For the purposes of this regulation, references in regulation 32(1)—

(a)to a “termination fee” are to be construed as references to a non-completion fee; and

(b)to termination on a ground specified in capacity market rules are to be construed as references to a failure to meet completion requirements in circumstances so specified.]

[F19(6) Regulation 33 applies (except for paragraphs (2)(b), (3) and (5)(b)) to a non-completion notice as it applies to a termination notice, and for that purpose, a reference in regulation 33 to—

(a)a “termination fee” is to be construed as a reference to a non-completion fee; and

(b)a “termination notice” is to be construed as a reference to a non-completion notice.]

Textual Amendments

Modifications etc. (not altering text)

[F20Repayment of capacity payments: terminationE+W+S

43B.—(1) A capacity provider must repay capacity payments to the Settlement Body if—

(a)a capacity agreement is terminated on a ground specified in capacity market rules; and

(b)capacity market rules specify that capacity payments are repayable in the event of the capacity agreement being terminated on that ground.

(2) The Settlement Body must, as soon as reasonably practicable after receiving final notice of termination of the capacity agreement—

(a)determine the amount in pounds of the capacity payments that are repayable; and

(b)issue to the capacity provider an invoice for that amount.

(3) Where capacity market rules specify that capacity payments are repayable in respect of—

(a)the period TP1, the capacity payments that must be repaid are those made in respect of the period beginning with the date of the termination notice and ending with the date of termination of the relevant capacity agreement;

(b)the period TP2, the capacity payments that must be repaid are those made in respect of the period beginning with the date of the termination event and ending with the date of termination of the relevant capacity agreement;

[F21(c)the period TP3, the capacity payments that must be repaid are those made in respect of the period beginning with the date on which capacity payments began under the relevant capacity agreement and ending with the date of termination of the relevant capacity agreement [F22;]]

[F23(d)the period TP4, the capacity payments that must be repaid are those made in respect of the period beginning on 1st October, and ending on 1st May, of the relevant delivery year.]

(4) In this regulation—

(a)“final notice of termination” means a notice given by the Delivery Body in accordance with capacity market rules that the capacity agreement has terminated; and

(b)“termination event” and “termination notice” have the meaning given in the Rules.

[F24(5) This regulation applies to the termination of a transferred part as it applies to the termination of a capacity agreement.]

Textual Amendments

Repayment of capacity payments: metering faultE+W+S

43C.—(1) A capacity provider must repay capacity payments to the Settlement Body if—

(a)a metering test certificate or DSR test certificate is, in accordance with capacity market rules, determined to be invalid on a ground specified in those rules; and

(b)capacity market rules specify that capacity payments are repayable in the event that a metering test certificate or DSR test certificate is determined to be invalid on that ground.

(2) The Settlement Body must, as soon as reasonably practicable after the relevant date—

(a)determine the amount in pounds of the capacity payments that are repayable; and

(b)issue to the capacity provider an invoice for that amount.

(3) In paragraph (2) the “relevant date” means the date on which, in accordance with capacity market rules—

(a)in the case of a metering test certificate, the certificate was determined by the Settlement Body to be invalid; or

(b)in the case of a DSR test certificate, the Settlement Body received notice of the invalidity of the certificate.

(4) Where capacity market rules specify that capacity payments are repayable in respect of—

(a)the period MP1, the capacity payments that must be repaid are those made in respect of the period beginning with the relevant invalidation date and ending with the date on which the relevant metering recovery payment notice is issued;

(b)the period MP2, the capacity payments that must be repaid are those made in respect of the period beginning with the relevant invalidation date and ending with the date on which the relevant completion notice is issued;

(c)the period MP3, the capacity payments that must be repaid are those made in respect of the period beginning with the first day of the relevant delivery year and ending with the date on which the relevant metering recovery payment notice is issued.

(5) In this regulation, “completion notice”, “invalidation date”, “metering recovery payment notice” and “metering test certificate” have the meaning given in the Rules.]

Textual Amendments

CHAPTER 3E+W+SCalculations and determinations: electricity suppliers

Settlement costs levy: the first levy periodE+W+S

44.—(1) Each liable electricity supplier must pay to the Settlement Body a settlement costs levy calculated in accordance with this regulation in respect of the first levy period.

(2) Subject to paragraph (3), the prescribed amount is £1,374,000.

(3) If the appointment date is on or after 1st September 2014, the prescribed amount is to be reduced by £100,000 for each full calendar month between 31st July 2014 and the appointment date.

(4) The Settlement Body must, as soon as reasonably practicable after the end of the first levy period—

(a)calculate the amount of the settlement costs levy to be paid by each liable electricity supplier; and

(b)issue an invoice to each liable electricity supplier for the amount to be paid by that supplier.

(5) The calculation under paragraph (4)(a) must be made in accordance with paragraph 9 of Schedule 1.

(6) In this regulation—

“the appointment date” means the date on which the Secretary of State first appoints a Settlement Body under regulation 80;

“the first levy period” means the period commencing on the appointment date and ending on 31st March 2015; and

“liable electricity supplier” means an electricity supplier which supplied electricity to [F25premises] in Great Britain in the first levy period;

“the prescribed amount” means the total amount of the settlement costs levy to be invoiced to liable electricity suppliers in respect of the first levy period;

“settlement costs” means costs incurred by the Settlement Body in connection with the performance of its functions under electricity capacity regulations and capacity market rules;

“settlement costs levy” means the levy imposed by this regulation on liable electricity suppliers in respect of settlement costs.

Textual Amendments

CHAPTER 4E+W+SPayment and non-payment

GeneralE+W+S

45.—(1) In this Chapter—

“draw down” has the same meaning as it has in Part 7;

“in default” means a failure to pay in full an invoiced amount by [F26the end of] the payment due date;

“invoiced amount” means the total amount payable by a payer as stated in the invoice issued to that payer under regulation 41, 43 [F27, 44 or 49A];

“payer” [F28, subject to regulation 47(7),] means a person to whom an invoice is issued under regulation 41, 43 [F29, 44 or 49A];

“payment due date” means the day specified in an invoice in accordance with regulation 38(2) as the date by which it is to be paid.

F30(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F30(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Payment of invoices and accruing interestE+W+S

46.—(1) A payer must pay the invoiced amount to the Settlement Body by no later than [F31the end of] the payment due date.

(2) Where a payer has not paid in full the invoiced amount to the Settlement Body as required by paragraph (1), the payer must pay the Settlement Body simple interest at the rate specified in paragraph (4) (“late payment interest”) on the outstanding balance of the invoiced amount from and including the payment due date until the date of payment.

(3) Where a payer disputes an invoiced amount under Chapter 2 of Part 10—

(a)if the decision of the Settlement Body under that Part is that the invoiced amount is reduced but not extinguished, late payment interest accrues on the reduced amount from and including the payment due date until the date of payment;

(b)if the decision of the Settlement Body under that Part is that the invoiced amount is extinguished, no late payment interest accrues in respect of the invoiced amount.

(4) The rate at which late payment interest is payable is 5 per cent per annum over the Bank of England base rate in force on the 30th June (in respect of interest which starts to run between 1st July and 31st December) or the 31st December (in respect of interest which starts to run between 1st January and 30th June) immediately before the date on which the interest starts to run.

(5) In paragraph (4), “Bank of England base rate” means—

(a)the rate announced from time to time by the Monetary Policy Committee of the Bank of England as the official dealing rate, being the rate at which the Bank is willing to enter into transactions for providing short term liquidity in the money markets; or

(b)where an order under section 19 of the Bank of England Act 1998 M1 is in force, any equivalent rate determined by the Treasury under that section.

Textual Amendments

Marginal Citations

The non-payment registerE+W+S

47.—(1) The Settlement Body must maintain a register (“the non-payment register”) which is to include in respect of a payer (“P”) who has not paid an invoice by [F32the end of] the payment due date—

(a)the name of P;

(b)whether P is an electricity supplier or a capacity provider;

(c)the type of invoice in respect of which P is in default;

(d)the payment due date;

(e)the date or dates when any payment has been made by P in respect of the invoice, and whether it is a full or partial payment; and

(f)whether P has given a disputes notice to the Settlement Body in respect of the invoice;

(g)if P has given a disputes notice in respect of the invoice, whether the dispute has been determined under Chapter 2 of Part 10 and, if so, that determination.

(2) The matters included on the non-payment register under paragraph (1) are a “relevant register entry” in relation to P.

(3) The Settlement Body must—

(a)make a relevant register entry as soon as possible after P is in default; and

(b)update the relevant register entry if a payment is subsequently made, or a dispute is raised or determined.

(4) The Settlement Body must remove a relevant register entry—

(a)if it is determined under Chapter 2 of Part 10 that the payment is not due, as soon as reasonably practicable after the Settlement Body makes that determination;

(b)in any other case, 12 months after the date on which P became in default.

(5) The Settlement Body must publish the information contained in the non-payment register on a website.

(6) The Settlement Body must retain the data contained in a relevant register entry for 5 years after the relevant register entry is made.

[F33(7) In this regulation, “payer” means a person to whom an invoice is issued under these Regulations or the Supplier Payment Regulations.]

Textual Amendments

Payment of credit notesE+W+S

48.  Subject to regulations 49 to 52, the Settlement Body must pay the amount due to—

(a)each capacity provider issued with a credit note for a capacity payment, by no later than [F34the end of the 33rd] working day after the end of the month to which the payment relates; and

(b)each capacity provider issued with a credit note for an over-delivery payment, by no later than [F35the end of the 33rd] working day after the end of the delivery year to which the payment relates.

Textual Amendments

Reducing capacity payments: unpaid capacity provider penalty chargesE+W+S

49.—(1) This regulation applies if, at the time when a credit note is issued to a capacity provider (“C”) for a capacity payment, C is in default in respect of a capacity provider penalty charge (an “unpaid penalty charge”).

(2) If this regulation applies—

(a)the Settlement Body must ensure that the credit otherwise payable to C is reduced—

(i)by the amount of the unpaid penalty charge;

(ii)to nil, if the amount of the unpaid penalty charge is equal to or greater than the amount of the credit; and

(b)the amount by which the credit is reduced is to be treated as a payment or part payment of the unpaid penalty charge.

(3) The Settlement Body must ensure that the credit note issued to C states the amount by which the credit is reduced, and the reason for the reduction.

[F36Reducing capacity payments: offsetting relevant expenditureE+W+S

49A.—[F37(1) This paragraph applies if, before the time when a credit note is issued to a capacity provider (“C”) for a capacity payment, the Delivery Body has acknowledged receipt of a declaration under the Rules that—

(a)relevant expenditure has been incurred, or is expected to be incurred; or

(b)relevant benefit has been received, or is expected to be received,

in respect of the capacity committed CMU for which C is responsible (“CMU i”).]

(2) If [F38paragraph (1)] applies, the Settlement Body must ensure that the credit otherwise payable to C is reduced—

(a)by the [F39aggregate] amount of any outstanding relevant expenditure [F40and outstanding relevant benefit]; or

(b)to nil, if the [F41aggregate] amount of any outstanding relevant expenditure [F42and outstanding relevant benefit] is equal to or greater than the amount of the credit.

(3) The Settlement Body must ensure that the credit note issued to C states the amount by which the credit is reduced, and the reason for the reduction.

[F43(3A) This paragraph applies where—

(a)the aggregate amount of any outstanding relevant expenditure and outstanding relevant benefit (“aggregate outstanding amount”) in respect of CMU i is greater than nil; and

(b)there are no further capacity payments in respect of CMU i which the Settlement Body would be required to reduce under paragraph (2) to offset this aggregate outstanding amount.

(3B) Where paragraph (3A) applies—

(a)C is liable to pay to the Settlement Body an amount equal to the lesser of—

(i)the aggregate outstanding amount; or

(ii)the total amount of all the capacity payments paid to C in respect of CMU i, less the amount of any repayment of these capacity payments by C to the Settlement Body under regulation 43B, 43C or 50; and

(b)the Settlement Body must, as soon as reasonably practicable after paragraph (3A) becomes applicable, issue to C an invoice for the amount C is liable to pay under sub-paragraph (a).]

[F44(4) This regulation applies to a credit note or invoice issued in respect of a transferred part as it applies to a credit note or invoice issued in respect of a capacity agreement, and where a capacity agreement has been transferred pursuant to regulation 30A(1)(b) or (2)(b)—

(a)the reduction in the amount payable to C pursuant to paragraph (2) is to be calculated so that it is proportionate to the period and part of the capacity obligation held by C during the month to which the credit note relates; and

(b)the aggregate outstanding amount attributable to C under paragraph (3B)(a) is to be determined by adjusting this amount so that it is proportionate to the period and part of the capacity obligation held by C throughout the duration of the capacity agreement.]

(5) In this regulation—

[F45“outstanding relevant benefit” means relevant benefit that has not been deducted from capacity payments pursuant to this regulation;]

“outstanding relevant expenditure” means relevant expenditure that has not been deducted from capacity payments pursuant to this regulation; and

[F46“relevant benefit” has the meaning given in the Rules.]

“relevant expenditure” has the meaning given in the Rules.]

Textual Amendments

Reducing capacity payments: failure to demonstrate satisfactory performanceE+W+S

50.—(1) This regulation applies in relation to a capacity committed CMU (“CMU i”) and a delivery year (“year X”) if—

(a)a satisfactory performance requirement applies in respect of CMU i in year X; and

(b)the requirement has not been met by 30th April in year X.

(2) If, by the end of a relevant month, the capacity provider in respect of CMU i (“C”) has not complied with the satisfactory performance requirement, no monthly capacity payment is to be paid in respect of CMU i for that month.

[F47(2A) If C complies with the satisfactory performance requirement during May in year X, no monthly capacity payment is to be paid in respect of CMU i for that month.]

(3) If C complies with the satisfactory performance requirement during a relevant month [F48other than May], the Settlement Body must ensure that the credit which would otherwise be payable to C in respect of the monthly capacity payment for CMU i for that month is reduced by the proportion , where—

(a)A is the number of days in the relevant month before the day on which C complies with the satisfactory performance requirement; and

(b)B is the number of days in the relevant month.

(4) If C has not complied with the satisfactory performance requirement by the end of year X—

(a)C must repay to the Settlement Body all capacity payments made in respect of CMU i and year X [F49less the total amount of any capacity provider penalty charges that C has paid in respect of CMU i and year X]; and

(b)the Settlement Body must, as soon as reasonably practicable after the end of year X, issue an invoice to C for the amount [F50due under sub-paragraph (a)].

(5) The Settlement Body must—

(a)if paragraph (2) [F51or paragraph (2A)] applies, give a notice to C which states that no monthly capacity payment is to be paid in respect of CMU i for the relevant month, and states the reason;

(b)if paragraph (3) applies, ensure that the credit note issued to C for the relevant month states the amount by which the credit is reduced, and states the reason;

(c)if paragraph (4) applies, ensure that the invoice issued to C under paragraph (4)(b) states the reason for the issue of the invoice.

(6) In this regulation—

“relevant month” means May, June, July, August or September in year X;

“satisfactory performance day” has the meaning given in the Rules;

“satisfactory performance requirement” means a requirement in capacity market rules for a capacity provider to demonstrate satisfactory performance days in respect of a capacity committed CMU.

Textual Amendments

Modifications etc. (not altering text)

Withholding credit payments to capacity providersE+W+S

51.—(1) This regulation applies where, at the time when a credit note is issued to a capacity provider (“C”) under this Part—

(a)C is subject to a data default notice; or

(b)the Settlement Body is aware that C is insolvent.

(2) The Settlement Body must ensure that—

(a)the credit is withheld; and

(b)the credit note states that the payment is to be withheld and states the reason why.

(3) In this regulation, “data default notice” has the meaning given by regulation 37(1).

Payment of withheld creditE+W+S

52.—(1) Paragraphs (2) and (3) apply where a credit is withheld from a capacity provider (“C”) under regulation 51.

(2) If, where the credit is withheld for the reason in regulation 51(1)(b), an invoice is due to be issued to C, the Settlement Body may deduct all or part of the withheld credit from the amount invoiced, and the amount so deducted is to be treated as having been paid to C.

(3) Except where the withheld credit has been deducted from an invoice in accordance with paragraph (2), the Settlement Body must pay the withheld credit on the next occasion which the Settlement Body considers practicable when—

(a)credit payments are made under this Part; and

(b)the Settlement Body is not required to withhold a credit from C under regulation 51.