# The Electricity Capacity Regulations 2014, Regulation 53: Application of this Part and interpretation


(1) This Part applies to a person who—
(a) has applied to prequalify for a capacity auction; and
(b) receives a notice from the Delivery Body under capacity market rules (a “conditional prequalification notice”) that it has prequalified in respect of that CMU subject to satisfying the requirements of this Part.
(2) In this Part, “A” means a person who is required to provide credit cover.
(3) In this Part—
“applicant credit cover” means credit cover provided, or required to be provided, by a person to which this Part applies;
“credit cover” means a letter of credit or cash deposit which meets the requirements in regulation 54;
“credit obligation period” means the period for which, under regulation 60, A is required to provide credit cover;
“draw down” means—
(a) in relation to a cash deposit in a bank account, the withdrawal of funds from the account by the Settlement Body;
(b) in relation to a letter of credit, the payment of funds by the issuing bank to the Settlement Body further to a notice of drawing;
“letter of credit” means a letter, in a form approved by the Settlement Body, which contains an irrevocable and unconditional authorisation in favour of the Settlement Body to be paid on demand up to an amount stated in the letter from an account held at a qualifying bank at any time during a period specified in the letter;
“notice of drawing” means a notice signed by or on behalf of the Settlement Body demanding payment under a letter of credit;
“qualifying bank” means—
(a) a United Kingdom clearing bank;
(b) any other bank which has a long term debt rating of—
(i) not less than A– by Standard & Poor’s; or
(ii) not less than A3 by Moody’s; or
(c) such other bank as the Settlement Body may approve;
“the required amount” means the amount of credit cover which A is required to provide, as determined in accordance with regulation 59(1) or, if applicable, regulation 60(2).
(4) In this Part, references to a prospective generating CMU are to be treated as including any generating CMU in respect of which a bidder is awarded, or an applicant pre-qualifies to bid for, a multi-year capacity obligation in a T-4 auction held on or before 31st July 2016.
(5) In paragraph (3), in the definition of “qualifying bank”—
“Moody’s” means the corporation known as Moody’s Investors Service, Inc, incorporated in the US State of Delaware with the file number 0577904;
“Standard & Poor’s” means the corporation known as Standard & Poor’s Corporation, incorporated in the US State of Delaware with the file number 4621989.

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Source: https://www.legislation.gov.uk/ukdsi/2014/9780111116852/regulation/53 (the official version)
Page: https://openlegislation.uk/draft-electricity-capacity-regulations-2014/regulation-53
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.