Regulation 29 DSR transitional auctions

(1)

A “DSR transitional auction” is a capacity auction in which bids may only be made for a one year capacity agreement in respect of—

(a)

a demand side response CMU; or

(b)

a non-CMRS distribution CMU with a connection capacity not exceeding 50MW.

(2)

The Delivery Body must hold a DSR transitional auction—

(a)

in the auction window commencing on 1st September 2015, for the 2016-17 delivery year; and

(b)

in the auction window commencing on 1st September 2016, for the 2017-18 delivery year.

(3)

Following a DSR transitional auction, a successful bidder must, in accordance with capacity market rules, elect whether to be issued with a capacity agreement for—

(a)

a time banded capacity obligation; or

(b)

a non-time banded capacity obligation.

(4)

A time banded capacity obligation is an obligation to provide capacity during such times of the day and such months of a delivery year as are specified in capacity market rules.

(5)

A non-time banded capacity obligation is an obligation to provide capacity at any time during a delivery year.

(6)

Capacity payments for a non-time banded capacity obligation are payable at a rate equal to the auction clearing price.

(7)

Capacity payments for a time banded capacity obligation awarded following the DSR transitional auction held under paragraph (2)(a) are payable at a rate equal to 70% of the auction clearing price.

(8)

The Secretary of State must determine as an auction parameter the rate, expressed as a percentage of the auction clearing price, at which capacity payments are to be payable for a time banded capacity obligation awarded following the DSR transitional auction held under paragraph (2)(b).

(9)

The Secretary of State must—

(a)

determine the auction parameters under—

(i)

regulation 12(1); and

(ii)

paragraph (8);

(b)

give notice of them to the Delivery Body as soon as reasonably practicable after making those determinations; and

(c)

publish the determinations.

(10)

Chapters 1 to 4 of this Part apply in relation to DSR transitional auctions with the modifications that—

(a)

regulation 12 applies as if paragraphs (4), (5)(a) and (b) and (6) were omitted; and

(b)

regulation 23 applies as if paragraphs (1)(c) and (2) to (4) were omitted.

(11)

In this regulation, “non-CMRS distribution CMU” means a CMU consisting of one or more non-CMRS distribution units, within the meaning given in regulation 5(8).