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Regulation 10 Reserve payments

Original text. Later amendments are not shown.

(1)

The CFD counterparty must determine—

(a)

the total amount of reserve payments (“the total reserve amount”) to be collected from suppliers in respect of each quarterly obligation period; and

(b)

the amount of each electricity supplier’s reserve payment in respect of each quarterly obligation period calculated in accordance with regulation 11.

(2)

The CFD counterparty must determine the total reserve amount and the amount of each electricity supplier’s reserve payment for a quarterly obligation period—

(a)

where that period commences on 1st April 2015, before 1st January 2015;

(b)

for any other quarterly obligation period, before the commencement of the quarterly obligation period which immediately precedes that period.

(3)

The CFD counterparty must publish its determination of the total reserve amount for a quarterly obligation period—

(a)

where that period commences on 1st April 2015, before 1st January 2015;

(b)

for any other quarterly obligation period, before the commencement of the quarterly obligation period which immediately precedes that period.

(4)

The CFD counterparty must issue a notice to every electricity supplier which sets out the amount of that supplier’s reserve payment for a quarterly obligation period—

(a)

where that period commences on 1st April 2015, before 1st January 2015;

(b)

for any other quarterly obligation period, before the commencement of the quarterly obligation period which immediately precedes that period.

(5)

The total reserve amount for a quarterly obligation period is the amount which the CFD counterparty determines it would need to be paid for there to be a 19 in 20 probability of it being able to make all the payments it is required to make to CFD parties during that period having regard to—

(a)

the amount of interim rate payments which it expects to be paid during the period;

(b)

the likelihood of any supplier failing to make payments it is required to make under these Regulations during that period; and

(c)

the estimated quarterly obligation period income, estimated quarterly obligation period electricity supply and the estimated quarterly period cost in respect of that period.