# The Electricity Capacity Regulations 2014, Regulation 49: Reducing capacity payments: unpaid capacity provider penalty charges


(1) This regulation applies if, at the time when a credit note is issued to a capacity provider (“C”) for a capacity payment, C is in default in respect of a capacity provider penalty charge (an “unpaid penalty charge”).
(2) If this regulation applies—
(a) the Settlement Body must ensure that the credit otherwise payable to C is reduced—
(i) by the amount of the unpaid penalty charge;
(ii) to nil, if the amount of the unpaid penalty charge is equal to or greater than the amount of the credit; and
(b) the amount by which the credit is reduced is to be treated as a payment or part payment of the unpaid penalty charge.
(3) The Settlement Body must ensure that the credit note issued to C states the amount by which the credit is reduced, and the reason for the reduction.

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Source: https://www.legislation.gov.uk/ukdsi/2014/9780111116852/regulation/49 (the official version)
Page: https://openlegislation.uk/draft-electricity-capacity-regulations-2014/regulation-49
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.