# The Electricity Capacity (Amendment and Transitional Provision) Regulations 2026, 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;
“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 (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;
“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;”.

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Source: https://www.legislation.gov.uk/ukdsi/2026/9780348283129/schedule/1/paragraph/2 (the official version)
Page: https://openlegislation.uk/draft-electricity-capacity-amendment-and-transitional-provision-regulations-2026/schedule-1/paragraph-2
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.