Regulation 4 CFD daily contributions

United Kingdom

(1)

The CFD daily contribution for a supplier for a day on which that supplier supplies electricity in a quarterly obligation period is the amount given by—

(G P - C P) \times [\frac{S D S - (X E + G E)}{T D S - (T E + G T)}]

where—

F2GP is the total amount of generation counterparty payments which the CFD counterparty is required to make in respect of—

(a)
electricity generation which occurred on that day,
(b)
electricity generation capacity which was made available on that day,
(c)
transport and storage capital costs or operational costs which arose on that day,
(d)
carbon dioxide capture which occurred on that day,
(e)
carbon dioxide capture capability which was made available on that day,
(f)
transport and storage revenue shortfalls which arose on that day,
(g)
F3the sustainable industry reward which arose on that day;

except for any payments which, at the time of the final reconciliation determination in respect of that quarterly obligation period, had not been determined by the CFD counterparty;

F4CP is the total amount of generation party payments which the CFD counterparty has received from CFD parties in respect of—

(a)
electricity generation which occurred on that day,
(b)
electricity generation capacity which was made available on that day,
(c)
transport and storage capital costs or operational costs which arose on that day,
(d)
carbon dioxide capture which occurred on that day,
(e)
carbon dioxide capture capability which was made available on that day,
(f)
transport and storage revenue shortfalls which arose on that day,
(g)
the sustainable industry reward which arose on that day;

except for any payments which, at the time of the final reconciliation determination in respect of that quarterly obligation period, had not been determined by the CFD counterparty;

SDS is the amount of electricity supplied by that supplier on that day;

F5XE is the amount of EII excluded electricity supplied by that supplier on that day;

F6...

TDS is the total amount of electricity supplied by all suppliers on that day.

F7TE is the total amount of EII excluded electricity supplied by all suppliers on that day;

F8...

F9(1A)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F10(1B)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2)

In this regulation F11and regulations 5 and 28—

F12“generation counterparty payment” means any CFD counterparty payment made under, or in respect of a breach of, a CFD or connected agreement which is calculated directly by reference to—
1. (a)
  an amount of electricity generated by a generating station which is the subject of that CFD or connected agreement,
2. (b)
  an amount of electricity generation capacity made available by a generating station which is the subject of that CFD or connected agreement,
3. (c)
  the capital costs or the operational costs incurred by a transport and storage provider and is payable under the CFD or connected agreement to the generating station which is the subject of that CFD or connected agreement,
4. (d)
  an amount of carbon dioxide captured by a generating station which is the subject of that CFD or connected agreement,
5. (e)
  an amount of carbon dioxide capture capability made available by a generating station which is the subject of that CFD or connected agreement,
6. (f)
  the revenue shortfalls of a transport and storage provider and is payable under the CFD or connected agreement to the generating station which is the subject of that CFD or connected agreement;
7. (g)
  F13the sustainable industry reward;
F14“generation party payment” means any CFD party payment made under a CFD or connected agreement which is calculated directly by reference to—
1. (a)
  an amount of electricity generated by a generating station which is the subject of that CFD or connected agreement,
2. (b)
  an amount of electricity generation capacity made available by a generating station which is the subject of that CFD or connected agreement,
3. (c)
  the capital costs or the operational costs incurred by a transport and storage provider and is payable under the CFD or connected agreement to a generating station which is the subject of that CFD or connected agreement,
4. (d)
  an amount of carbon dioxide captured by a generating station which is the subject of that CFD or connected agreement,
5. (e)
  an amount of carbon dioxide capture capability made available by a generating station which is the subject of that CFD or connected agreement,
6. (f)
  the revenue shortfalls of a transport and storage provider and is payable under the CFD or connected agreement to the generating station which is the subject of that CFD or connected agreement;
7. (g)
  F15the sustainable industry reward.

(3)

For the purposes of this regulation and regulation 5, the amount of electricity supplied by a supplier is the amount of electricity which the BSCCo determines was supplied by that supplier on the basis of—

(a)

a Final Reconciliation Volume Allocation Run; or

(b)

where a Post-Final Volume Allocation Run has occurred in relation to the day on which the electricity was supplied, a Post-Final Volume Allocation Run.

Annotations

Textual amendments

F1: Reg. 4(1) formula substituted (1.4.2023) by The Electricity Supplier Obligations (Green Excluded Electricity) (Amendment) Regulations 2023 (S.I. 2023/389), regs. 1(2), 2(3)(a)(i)
F2: Words in reg. 4(1) substituted (12.11.2024) by The Contracts for Difference (Electricity Supplier Obligations) (Amendment) Regulations 2024 (S.I. 2024/1159), regs. 1(2), 4(a)(i)
F3: Words in reg. 4(1) inserted (22.7.2025) by The Contracts for Difference (Miscellaneous Amendments) (No. 3) Regulations 2025 (S.I. 2025/903), regs. 1(2), 14(a)
F4: Words in reg. 4(1) substituted (12.11.2024) by The Contracts for Difference (Electricity Supplier Obligations) (Amendment) Regulations 2024 (S.I. 2024/1159), regs. 1(2), 4(a)(ii)
F5: Words in reg. 4(1) inserted (1.4.2015) by The Electricity Supplier Obligations (Amendment & Excluded Electricity) Regulations 2015 (S.I. 2015/721), regs. 1(2), 16(2)(b)
F6: Words in reg. 4(1) omitted (1.4.2023) by virtue of The Electricity Supplier Obligations (Green Excluded Electricity) (Amendment) Regulations 2023 (S.I. 2023/389), regs. 1(2), 2(3)(a)(ii)
F7: Words in reg. 4(1) inserted (1.4.2015) by The Electricity Supplier Obligations (Amendment & Excluded Electricity) Regulations 2015 (S.I. 2015/721), regs. 1(2), 16(2)(c)
F8: Words in reg. 4(1) omitted (1.4.2023) by virtue of The Electricity Supplier Obligations (Green Excluded Electricity) (Amendment) Regulations 2023 (S.I. 2023/389), regs. 1(2), 2(3)(a)(iii)
F9: Reg. 4(1A) omitted (1.4.2023) by virtue of The Electricity Supplier Obligations (Green Excluded Electricity) (Amendment) Regulations 2023 (S.I. 2023/389), regs. 1(2), 2(3)(b)
F10: Reg. 4(1B) omitted (1.4.2023) by virtue of The Electricity Supplier Obligations (Green Excluded Electricity) (Amendment) Regulations 2023 (S.I. 2023/389), regs. 1(2), 2(3)(c)
F11: Words in reg. 4(2) substituted (1.7.2017) by The Electricity Supplier Payments (Amendment) Regulations 2017 (S.I. 2017/502), regs. 1(2), 5(f)
F12: Words in reg. 4(2) substituted (12.11.2024) by The Contracts for Difference (Electricity Supplier Obligations) (Amendment) Regulations 2024 (S.I. 2024/1159), regs. 1(2), 4(b)(i)
F13: Words in reg. 4(2) inserted (22.7.2025) by The Contracts for Difference (Miscellaneous Amendments) (No. 3) Regulations 2025 (S.I. 2025/903), regs. 1(2), 14(b)(i)
F14: Words in reg. 4(2) substituted (12.11.2024) by The Contracts for Difference (Electricity Supplier Obligations) (Amendment) Regulations 2024 (S.I. 2024/1159), regs. 1(2), 4(b)(ii)
F15: Words in reg. 4(2) inserted (22.7.2025) by The Contracts for Difference (Miscellaneous Amendments) (No. 3) Regulations 2025 (S.I. 2025/903), regs. 1(2), 14(b)(ii)