Regulation 2 Interpretation

In these Regulations—

• “absolute value”, in relation to an amount, means the magnitude of that amount without regard to whether that amount is positive or negative;

• “the Act” means the Energy Act 2013;

• “the Balancing and Settlement Code” means the code for the governance of electricity balancing and settlement in Great Britain which is maintained in accordance with the conditions of transmission licences granted under section 6(1)(b) of the Electricity Act 1989^f1 as it was in force on 1st April 2014;

• “BSC volume allocation run” means any one of the following—

  1. (a)

     an Initial Volume Allocation Run,

  2. (b)

     an Interim Information Volume Allocation Run,

  3. (c)

     a Reconciliation Volume Allocation Run (including a Final Reconciliation Volume Allocation Run or a Post-Final Volume Allocation Run);

• “the BSCCo” means ELEXON Limited (or any successor to that company acting in the capacity of the BSCCo within the meaning given in the Balancing and Settlement Code);

• “CFD counterparty payment” means any payment which the CFD counterparty must make—

  1. (a)

     under a CFD;

  2. (b)

     under a connected agreement;

  3. (c)

     to a CFD party for the purpose of compensating that person for any costs incurred by that person in respect of a breach of a CFD or a connected agreement,

  and includes any payment made to a person to whom a benefit under a CFD or connected agreement has been assigned in accordance with the terms of that agreement;

• “CFD party” means a person, other than the CFD counterparty, who is a party to a CFD or connected agreement and is entitled to payments under such an agreement;

• “CFD party payment” means any payment which a CFD party must make to the CFD counterparty—

  1. (a)

     under a CFD;

  2. (b)

     under a connected agreement,

  and includes a payment made to a person to whom a benefit under a CFD or connected agreement has been assigned in accordance with the terms of that agreement;

• “CFD period contribution” is to be construed in accordance with regulation 3;

• “connected agreement” means any agreement entered into by the CFD counterparty or a CFD party, pursuant to a CFD;

• “electricity supplier” means a person who is the holder of a licence to supply electricity under section 6(1)(d) of the Electricity Act 1989;

• “electricity supply” means a supply of electricity to any premises in Great Britain;

• “estimated quarterly obligation period electricity supply”, “estimated quarterly obligation period income”, and “estimated quarterly obligation period payment cost” are to be construed in accordance with regulation 7;

• “Final Reconciliation Volume Allocation Run” has the meaning given in the Balancing and Settlement Code (see section U of that code);

• “first operational cost period” means the period beginning on 1st January 2015 and ending on 31st March 2015;

• “Initial Volume Allocation Run” has the meaning given in the Balancing and Settlement Code (see section U of that code);

• “Interim Information Volume Allocation Run” has the meaning given in the Balancing and Settlement Code (see section U of that code);

• “interim rate payment” is to be construed in accordance with regulation 8;

• “investment contract” has the meaning given in Schedule 2 to the Act;

• “letter of credit” means a letter from a person which contains an irrevocable and unconditional authorisation in favour of the CFD counterparty to be paid by that person on demand up to an amount stated in the letter;

• “mutualisation amount” and “mutualisation notice” are to be construed in accordance with regulation 17;

• “operational cost period” means—

  1. (c)

     the first operational cost period, or

  2. (d)

     any subsequent period beginning on 1st April in a year and ending on 31^st March in the following year;

• “Post-Final Volume Allocation Run” has the meaning given in the Balancing and Settlement Code (see section U of that code);

• “quarterly obligation period” means a period of 3 months commencing after 31st March 2015 on 1st April, 1st July, 1st October or 1st January in any period of 12 months;

• “reconciliation determination” and “reconciliation period” are to be construed in accordance with regulation 15(1);

• “Reconciliation Volume Allocation Run” has the meaning given in the Balancing and Settlement Code (see section U of that code);

• “reserve payment” means a payment an electricity supplier is required to make under regulation 11(1);

• “total reserve amount” is to be construed in accordance with regulation 10;

• “working day” means a day that is not a Saturday or Sunday, Christmas Day, Good Friday or any day that is a bank holiday in England and Wales under the Banking and Financial Dealings Act 1971^f2.

Any reference in these Regulations to an amount of electricity is a reference to that amount expressed in megawatt hours.

Any reference in these Regulations to an amount to be paid or provided is a reference to that amount expressed in pounds sterling and rounded to the nearest whole penny with any half of a penny being rounded upwards.

Any reference in these Regulations to a CFD includes a reference to an investment contract which was transferred to the CFD counterparty by virtue of paragraph 16(1) of Schedule 2 to the Act.

For the purposes of sections 7, 8, 9, 17 to 21 and 26 of the Act an investment contract which was transferred to the CFD counterparty by virtue of paragraph 16(1) of Schedule 2 to the Act is to be treated as a CFD.

Where more than one person is designated under section 7 of the Act as a CFD counterparty, the Schedule has effect and these Regulations have effect as set out in that Schedule.