# The Electricity Capacity (No. 1) Regulations 2019, Regulation 42: DSR unproven capacity fee


The Principal Regulations apply as if, after regulation 43ZA (termination fees: adjustment for DSR providers) there were inserted—
“DSR unproven capacity fee
43ZB. (1) A capacity provider (“C”) in respect of a demand side response CMU (“CMU i”) must pay to the Settlement Body a fee (a “DSR unproven capacity fee”), by way of financial penalty, if C has in accordance with capacity market rules provided to the Delivery Body a DSR test certificate which evidences CMU i’s proven DSR capacity is an amount less than CMU i’s de-rated capacity.
(2) Where a DSR unproven capacity fee would be payable by C before the T-1 capacity agreement trigger event has occurred, this fee only becomes payable if the T-1 capacity agreement trigger event occurs.
(3) Subject to paragraph (4), the Settlement Body must, as soon as reasonably practicable after receiving notice from the Delivery Body that C has provided a DSR test certificate which gives rise to a DSR unproven capacity fee—
(a) determine the amount in pounds of the DSR unproven capacity fee that is payable (or which would be payable if the T-1 capacity agreement trigger event occurred); and
(b) issue to the capacity provider an invoice for that amount.
(4) An invoice under paragraph (3)(b) must only be issued on or after the date on which the T-1 capacity agreement trigger event occurred.
(5) The DSR unproven capacity fee payable by C in respect of CMU i is—
(a) where CMU i’s proven DSR capacity is less than 90% of CMU i’s de-rated capacity, UCF 1; and
(b) where CMU i’s proven DSR capacity is equal to or greater than 90% of CMU i’s de-rated capacity, UCF 2.
(6) In this regulation—
“UCF 1” means an amount equal to £5000 per MW of the amount of the de-rated capacity of CMU i; and
“UCF 2” means an amount calculated in accordance with the formula—
UCF 2 = UCF 1 × ( ( DC−PC ) / DC )
(7) In paragraph (6)—
“DC” means CMU i’s de-rated capacity; and
“PC” means CMU i’s proven DSR capacity.”.

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Source: https://www.legislation.gov.uk/ukdsi/2019/9780111182437/regulation/42 (the official version)
Page: https://openlegislation.uk/draft-electricity-capacity-no-1-regulations-2019/regulation-42
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.