# The Electricity Capacity Regulations 2014, Regulation 50: Reducing capacity payments: failure to demonstrate satisfactory performance


(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.

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Source: https://www.legislation.gov.uk/ukdsi/2014/9780111116852/regulation/50 (the official version)
Page: https://openlegislation.uk/draft-electricity-capacity-regulations-2014/regulation-50
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.