The Electricity Capacity (Amendment etc.) (Coronavirus) Regulations 2020

PART 2 Auction parameters

Regulation 11 (meaning of auction parameters)

2.—(1) In regulation 11(1)(b), before “target capacity” insert “auction”.

(2) In regulation 11(3)—

(a) in the definition of “15 year minimum £/kW threshold”, after “a generating CMU” insert “or an unproven demand side response CMU”;

(b) in the definition of “3 year minimum £/kW threshold”, after “a generating CMU” insert “or an unproven demand side response CMU”; and

(c) after the definition of “3 year minimum £/kW threshold” insert—

““auction target capacity” means, in respect of a capacity auction, the portion of the target capacity in relation to the capacity year corresponding to the delivery year for which the capacity auction is to be held which should be used for that capacity auction.”

Regulation 12 (determination of auction parameters by Secretary of State)

3.—(1) After regulation 12(2), insert—

“(2A) When determining under paragraph (1) the auction parameter referred to in regulation 11(1)(b) (auction target capacity) in respect of a T-4 auction and the delivery year for which that T-4 auction is to be held (“delivery year x”), the Secretary of State must—

(a) determine the target capacity for the capacity year corresponding to delivery year x;

(b) determine the target capacity for the capacity year corresponding to delivery year x that should be set aside for the T-1 auction for delivery year x (“the T-1 auction set aside”) in accordance with paragraph (2B); and

(c) deduct the T-1 auction set aside from the target capacity for the capacity year corresponding to delivery year x.

(2B) For the purposes of paragraph (2A)(b), the Secretary of State must determine the T-1 auction set aside by applying a 95% confidence interval around the target capacity for the capacity year corresponding to delivery year x.

(2C) For each T-1 auction, where the delivery year corresponds with delivery year x, the Secretary of State must determine the auction parameter referred to in regulation 11(1)(b) (auction target capacity) to be an amount equal to or greater than 50% of the T-1 auction set aside if previously determined under paragraph (2A)(b) for the T-1 auction for delivery year x.”.

(2) For regulation 12(6), substitute—

“(6) If the auction target capacity determined by the Secretary of State for a T-1 auction or a T-4 auction is different from a recommendation in the electricity capacity report as to the portion of the target capacity that should be used in that capacity auction, the determination must include an explanation of—

(a) the Secretary of State’s reasons for not following that recommendation; and

(b) the basis upon which the Secretary of State has made the determination.”.

(3) After regulation 12(6), insert—

“(7) In this regulation—

“the 95% confidence interval” means the range of values within which the target capacity for a capacity year may be expected to lie with a 0.95 level of probability;

“auction target capacity” has the meaning given in regulation 11(3).”.

Regulation 13 (adjustment of auction parameters following prequalification)

4.—(1) In regulation 13(1), at the beginning insert “Subject to paragraph (1A),”.

(2) After regulation 13(1), insert—

“(1A) If the Secretary of State adjusts the auction parameter referred to in regulation 11(1)(b) (auction target capacity) for a T-1 auction, that auction target capacity must remain equal to or greater than 50% of the T-1 auction set aside if previously determined under regulation 12(2A)(b) for that T-1 auction and delivery year.”.

(3) After regulation 13(2), insert—

“(3) In this regulation, “the T-1 auction set aside” has the meaning given in regulation 12(2A)(b).”.