Regulation 6 New regulation 34A

After regulation 34, insert—

“Termination of capacity agreements: CCS CFDs

34A

(1)

This regulation applies where a capacity provider gives the Delivery Body, in accordance with capacity market rules, a CCS CFD transfer notice in relation to a CMU (“CMU i”) to which a capacity agreement (“A”) applies.

(2)

The Delivery Body must give a notice specifying the CCS CFD related termination date in respect of A, to—

(a)

the capacity provider in respect of A;

(b)

the Secretary of State;

(c)

the Authority;

(d)

the Settlement Body; and

(e)

the CFD counterparty.

(3)

A is terminated on the CCS CFD related termination date specified in the notice given by the Delivery Body under paragraph (2) unless—

(a)

A is terminated in accordance with these Regulations or on a ground specified in the capacity market rules prior to the CCS CFD related termination date; or

(b)

the duration of A is reduced in accordance with capacity market rules such that it expires before the CCS CFD related termination date.

(4)

In this regulation—

• “CCS CFD” means a CFD in connection with which an eligible generator is to alter an existing generating station so that it becomes a generating station connected to a complete CCS system;

• “CCS CFD evidence” has the meaning given in the Rules;

• “CCS CFD payment start date” means the date on which a person becomes eligible under a CCS CFD to receive a generation counterparty payment;

• “CCS CFD related termination date” means the date which is:

  1. (a)

     the last day of the capacity year which the capacity provider in respect of CMU i specifies in a CCS CFD transfer notice as the final delivery year of A; or

  2. (b)

     six working days after the CCS CFD transfer notice window during which a CCS CFD transfer notice is given, where the capacity provider in respect of CMU i states in a CCS CFD transfer notice that it intends for A to end before its first delivery year;

• “CCS CFD transfer notice” means a notice from a capacity provider which—

  1. (a)

     identifies a capacity agreement which the capacity provider holds;

  2. (b)

     describes the CMU to which that capacity agreement relates;

  3. (c)

     states that the capacity provider proposes to enter or has entered into a CCS CFD in respect of the CMU;

  4. (d)

     specifies—

     1. (i)

        the capacity year which the capacity provider intends to be the final delivery year of the capacity agreement; or

     2. (ii)

        that the capacity provider intends for the capacity agreement to end before its first delivery year;

  5. (e)

     requests that the Delivery Body terminates the capacity agreement on a nominated CCS CFD related termination date;

  6. (f)

     is accompanied by CCS CFD evidence; and

  7. (g)

     includes a statement verifying the truth of the statements contained in and accompanying the notice, which is signed by—

     1. (i)

        where the capacity provider is a company with more than one director, two directors;

     2. (ii)

        where the capacity provider is a company with a sole director, the sole director;

     3. (iii)

        where the capacity provider is not a company, by two persons duly authorised by the capacity provider;

• “CCS CFD transfer notice window” has the meaning given in the Rules;

• “complete CCS system” has the meaning given in regulation 2(1) of the Contracts for Difference (Definition of Eligible Generator) Regulations 2014^f1;

• “generating station” has the meaning given in regulation 2(1) of the Contracts for Difference (Definition of Eligible Generator) Regulations 2014;

• “generation counterparty payment” has the meaning given in regulation 4(2) of the Contracts for Difference (Electricity Supplier Obligations) Regulations 2014^f2;

• “nominated CCS CFD related termination date” means, in respect of a CMU described in a CCS CFD transfer notice, a date which is—

  1. (a)

     before the date which the capacity provider expects to be the CCS CFD payment start date under a CCS CFD which the capacity provider proposes to enter or has entered into in respect of the CMU; and

  2. (b)

     either—

     1. (i)

        the last day of the capacity year which the capacity provider in respect of the CMU intends to be the final delivery year of the capacity agreement which applies to the CMU; or

     2. (ii)

        six working days after the CCS CFD transfer notice window during which the CCS CFD transfer notice is given by the capacity provider, where the capacity provider in respect of the CMU intends for the capacity agreement to end before its first delivery year.”.