Regulation 16 Determination of reconciliation payments

(1)

The amount of a reconciliation payment to be paid to or by a supplier in respect of the reconciliation period is—

(a)

the CFD counterparty’s calculation, at the time of making that calculation, of the CFD period contribution in relation to that supplier in respect of the reconciliation period, less

(b)

the net levied amount for that supplier in respect of that period.

(2)

For the purposes of the calculation of a CFD period contribution, where a Final Reconciliation Volume Allocation Run or Post-Final Volume Allocation Run has not been carried out by the BSCCo in relation to a day in the reconciliation period, the amount of electricity supplied on that day by a supplier is to be determined on the basis of the most recent BSC reconciliation run which the BSCCo has carried out in relation to that day.

(3)

Where the amount of a reconciliation payment in relation to an electricity supplier—

(a)

is a positive number that supplier must pay that amount to the CFD counterparty;

(b)

is a negative number the CFD counterparty must pay the absolute value of that amount to that supplier.

(4)

Where, following a reconciliation determination, the CFD counterparty must make a reconciliation payment to an electricity supplier, or that electricity supplier must make a reconciliation payment to the CFD counterparty, that payment must be made by the 90th day after the day on which the CFD counterparty has issued a notice to that supplier under regulation 15(3) in respect of that reconciliation determination.

(5)

Where an electricity supplier is required to pay a reconciliation payment and it fails to pay all or part of that payment by the day on which that payment must be made, that supplier must pay the CFD counterparty simple interest on any unpaid amount at the rate specified in regulation 35(1) from the day after the day on which the payment should have been made.

(6)

For the purposes of paragraph (1), the net levied amount for a supplier in respect of a reconciliation period is the sum of—

(a)

any payment that supplier was required to make under regulation 8(1) in respect of a day in the reconciliation period;

(b)

the sum of any payments that supplier was required to make under regulation 9(2) in respect of days in the reconciliation period less the sum of any payments the CFD counterparty was required to make under regulation 9(3) in respect of days in that period;

(c)

any payment that supplier was required to make under regulation 11(1) in respect of the reconciliation period;

(d)

any payment that supplier was required to make under regulation 14(3) in respect of the reconciliation period;

(e)

the sum of any reconciliation payments which that supplier was required to make under paragraph (3)(a) in respect of any previous reconciliation determination made in relation to the reconciliation period less the sum of any reconciliation payments which the CFD counterparty was required to make under paragraph (3)(b) in respect of any previous reconciliation determination made in relation to the reconciliation period.