# The Electricity Capacity Regulations 2014, Regulation 43: Termination fees


(1) A capacity provider must pay to the Settlement Body a termination fee, by way of a financial penalty, if—
(a) a capacity agreement is terminated on a ground specified in capacity market rules; and
(b) capacity market rules specify that a termination fee is payable in the event of the capacity agreement being terminated on that ground.
(2) The Settlement Body must, as soon as reasonably practicable after receiving notice of the termination of a capacity agreement on a ground for which a termination fee is payable—
(a) determine the amount in pounds of the termination fee that is payable; and
(b) issue to the capacity provider an invoice for that amount.
(3) Where capacity market rules specify that TF1 is payable, the amount must be determined in accordance with the formula—
TF1=TF 1 rate ×CO.
(4) Where capacity market rules specify that TF2 is payable, the amount must be determined in accordance with the formula—
TF2=TF 2 rate ×CO.
(5) In this regulation—
“CO” means the capacity obligation in MW for which the capacity agreement was issued, as specified in the capacity market register;
“ TF 1 rate ” means the rate in pounds per MW determined in accordance with regulation 32 and specified in the capacity market register as the rate at which TF1 is payable under the capacity agreement; and
“ TF 2 rate ” means the rate in pounds per MW determined in accordance with regulation 32 and specified in the capacity market register as the rate at which TF2 is payable under the capacity agreement.

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Source: https://www.legislation.gov.uk/ukdsi/2014/9780111116852/regulation/43 (the official version)
Page: https://openlegislation.uk/draft-electricity-capacity-regulations-2014/regulation-43
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.