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Regulation 50 Reducing capacity payments: failure to demonstrate satisfactory performance

Original text. Later amendments are not shown.

(1)

This regulation applies in relation to a capacity committed CMU (“CMU i”) and a delivery year (“year X”) if—

(a)

a satisfactory performance requirement applies in respect of CMU i in year X; and

(b)

the requirement has not been met by 30th April in year X.

(2)

If, by the end of a relevant month, the capacity provider in respect of CMU i (“C”) has not complied with the satisfactory performance requirement, no monthly capacity payment is to be paid in respect of CMU i for that month.

(3)

If C complies with the satisfactory performance requirement during a relevant month, the Settlement Body must ensure that the credit which would otherwise be payable to C in respect of the monthly capacity payment for CMU i for that month is reduced by the proportion A B , where—

(a)

A is the number of days in the relevant month before the day on which C complies with the satisfactory performance requirement; and

(b)

B is the number of days in the relevant month.

(4)

If C has not complied with the satisfactory performance requirement by the end of year X—

(a)

C must repay to the Settlement Body all capacity payments made in respect of CMU i and year X; and

(b)

the Settlement Body must, as soon as reasonably practicable after the end of year X, issue an invoice to C for the amount of those capacity payments.

(5)

The Settlement Body must—

(a)

if paragraph (2) applies, give a notice to C which states that no monthly capacity payment is to be paid in respect of CMU i for the relevant month, and states the reason;

(b)

if paragraph (3) applies, ensure that the credit note issued to C for the relevant month states the amount by which the credit is reduced, and states the reason;

(c)

if paragraph (4) applies, ensure that the invoice issued to C under paragraph (4)(b) states the reason for the issue of the invoice.

(6)

In this regulation—

  • “relevant month” means May, June, July, August or September in year X;

  • “satisfactory performance day” has the meaning given in the Rules;

  • “satisfactory performance requirement” means a requirement in capacity market rules for a capacity provider to demonstrate satisfactory performance days in respect of a capacity committed CMU.