Paragraph 7 Amendments to regulation 51

In regulation 51 (withholding credit payments to capacity providers)—

(a)

in paragraph (1)—

(i)

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

(ii)

after sub-paragraph (a), insert—

“(aa)

C is issued a termination notice in relation to a CMU (“CMU i”) for an insolvency termination event (a “relevant termination notice”); or”;

(iii)

in sub-paragraph (b), at the start, insert, “other than when sub-paragraph (aa) applies,”;

(b)

in paragraph (2)—

(i)

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

(ii)

after sub-paragraph (a), insert—

“(aa)

where a relevant termination notice has been issued, no monthly capacity payment is paid in respect of the relevant CMU from the date the relevant termination notice is issued, and credit is withheld in accordance with paragraph (2A); and”;

(c)

after paragraph (2), insert—

“(2A)

Where C is issued a relevant termination notice, the Settlement Body must withhold credit in accordance with the formula—
$A = X \times \frac{Y}{Z}$
where—

A is the adjusted capacity payment;

X is the full monthly capacity payment;

Y is the number of days in that month before the date the relevant termination notice was issued; and

Z is the total number of days in the month during which the termination notice was issued.

(2B)

The Settlement Body is not required to withhold credit from C under paragraph (1)(aa) if the relevant termination notice is withdrawn.

(2C)

Paragraph (1)(aa) applies to the termination of a transferred part as it applies to the termination of a capacity agreement.”.

(d)

for paragraph (3), substitute—

“(3)

In this regulation—

“data default notice” has the meaning given in regulation 37(1);

“insolvency termination event” and“termination notice” have the meanings given in the Rules.”.