Paragraph 2 Amendments to regulation 16

In regulation 16 (excluded capacity: low carbon support scheme CMUs)—

(a)

for paragraph (2), substitute—

“(2)

The Delivery Body must not prequalify a CMU if, in respect of the generating station that comprises or includes the CMU—

(a)

the CFD counterparty has made an offer of a direct award CFD and—

(i)

the CFD counterparty and an eligible generator have entered into that CFD;

(ii)

that CFD has not expired or been terminated; and

(iii)

the applicant does not provide a non-support confirmation by the close of the prequalification window; or

(b)

the CFD counterparty has made an offer of an allocation round CFD and—

(i)

an eligible generator has entered into the CFD; and

(ii)

that CFD has not expired or been terminated.”;

(b)

in paragraph (2A), for “(2)(a)(ii)” substitute “(2)(b)(i)”;

(c)

in paragraph (4)—

(i)

before the definition of “co-firing CMU”, insert—

““allocation round” means an allocation round established by the Secretary of State under regulation 4 of the Contracts for Difference (Allocation) Regulations 2014^f1;

“allocation round CFD” means a CFD offered under section 14(1) of the Act (CFD notification: offer to contract on standard terms) and regulation 10(1) of the Contracts for Difference (Standard Terms) Regulations 2014^f2 (offer to contract) following an allocation round;”;

(ii)

after the definition of “co-firing CMU”, insert—

““direct award CFD” means a CFD offered by the CFD counterparty following a direction given by the Secretary of State under section 10(1) of the Act (direction to offer to contract);”;

(iii)

after the definition of “FIT Order”, insert—

““generation counterparty payment” has the meaning given in regulation 4(2) of the Contracts for Difference (Electricity Supplier Obligations) Regulations 2014^f3;

“generation party payment” has the meaning given in regulation 4(2) of the Contracts for Difference (Electricity Supplier Obligations) Regulations 2014;”;

(iv)

in the definition of “non-support confirmation”—

(aa)

at the end of sub-paragraph (a), omit “or”;

(bb)

at the end of sub-paragraph (b), insert “or”;

(cc)

after sub-paragraph (b), insert—

“(c)

that, in respect of a direct award CFD, the applicant will not receive a generation counterparty payment or be obliged to make a generation party payment in respect of the relevant CMU for any of the delivery period;”.

Annotations

Footnotes

f1: S.I. 2014/2011; amended by S.I. 2024/710; there are other amending instruments but none are relevant.
f2: S.I. 2014/2012; amended by S.I. 2016/784; there are other amending instruments but none are relevant.
f3: S.I. 2014/2014; relevant amending instruments are S.I. 2024/1159 and S.I. 2025/903.