Regulation 7 Minor modification

(1)

The CFD counterparty must determine that the effect of a modification is not minor where, in the opinion of the CFD counterparty, it would be likely to decrease the liabilities of a generator under a CFD or increase the commercial benefit for a generator of a CFD.

(2)

The CFD counterparty must determine that the effect of a modification is not minor where it would change provision for any of the following in the standard terms—

(a)

the period during which a generator may start to receive payments under a CFD;

(b)

the period during which the parties to a CFD must make payments under a CFD;

(c)

the date by which a generator must—

(i)

notify the CFD counterparty that it has incurred a sum specified in the CFD in the development of the generating facility; or

(ii)

provide the CFD counterparty with certain documentation specified in the CFD concerning the development of the generating facility;

(d)

any methodology which directly or indirectly affects the calculation of sums payable under a CFD;

(e)

any time limit for invoicing or for making a payment under a CFD;

(f)

which circumstances allow the CFD counterparty to use sums paid by a generator under a CFD as collateral; or

(g)

any requirement to provide information to the CFD counterparty where the information is necessary for the performance of any of the CFD counterparty’s obligations to make payments to a generator under a CFD.

(3)

The CFD counterparty must determine that the effect of a modification is not minor where, in the opinion of the CFD counterparty, it would be likely to cause the CFD counterparty to incur costs above an amount specified by the Secretary of State under paragraph (6) as a result of the CFD counterparty—

(a)

carrying out its obligations under a CFD; or

(b)

making arrangements for the performance of new obligations required by a modification.

(4)

Subject to paragraph (5), the CFD counterparty must determine that the effect of a modification is not minor where it would—

(a)

affect any existing contractual arrangements between the CFD counterparty and third parties; or

(b)

require the CFD counterparty to enter into any new contractual arrangements with third parties which are not provided for in a CFD.

(5)

The CFD counterparty may determine that a modification described in paragraph (4) is minor where, in the opinion of the CFD counterparty, the modification would be likely to provide the CFD counterparty with a commercial benefit.

(6)

At the same time as the Secretary of State gives an allocation round notice, the Secretary of State must give the CFD counterparty a notice setting out the specified amount for the purposes of paragraph (3).

(7)

The CFD counterparty must publish the notice on its website as soon as reasonably practicable after it is received.