# The Electricity Capacity Regulations 2014, Regulation 11: Meaning of auction parameters


(1) “Auction parameters”, in relation to a capacity auction, means, subject to paragraph (2), such of the following as are determined by the Secretary of State for that capacity auction under regulation 12 or 29(8)—
(a) the demand curve;
(b) the target capacity;
(c) the price cap;
(d) the price-taker threshold;
(e) the 15 year minimum £/kW threshold and 3 year minimum £/kW threshold;
(f) the base period applicable for the purpose of calculation of capacity payments;
(g) price duration equivalences for each possible clearing price in the capacity auction; and
(h) in relation to a DSR transitional auction, the parameter specified in regulation 29(8).
(2) If any of the parameters referred to in paragraph (1) for a capacity auction have been adjusted in accordance with these Regulations or capacity market rules, references to the auction parameters for that capacity auction are to the parameters as so adjusted.
(3) In paragraph (1)—
“15 year minimum £/kW threshold” means the minimum amount of capital expenditure per kilowatt of de-rated capacity which a bidder must commit to spending on a generating CMU to be eligible to bid for a capacity obligation for a period of more than 3 and up to 15 delivery years;
“3 year minimum £/kW threshold” means the minimum amount of capital expenditure per kilowatt of de-rated capacity which a bidder must commit to spending on a generating CMU to be eligible to bid for a capacity obligation for a period of 2 or 3 delivery years;
a “price duration equivalence” means the price at which a bid for a capacity obligation for a specified duration of 2 or more delivery years is to be treated as equivalent to a bid for a capacity obligation for one delivery year, for the purposes of determining—
(a) in respect of which bids capacity obligations are to be awarded; and
(b) the capacity cleared price applying to those capacity obligations.

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Source: https://www.legislation.gov.uk/ukdsi/2014/9780111116852/regulation/11 (the official version)
Page: https://openlegislation.uk/draft-electricity-capacity-regulations-2014/regulation-11
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.