# The Electricity Capacity Regulations 2014, Regulation 54: Credit cover: requirements


(1) A person who is under an obligation to provide credit cover must do so—
(a) for at least the required amount; and
(b) in a permissible form (or partly in one permissible form and partly in the other).
(2) The following are permissible forms of credit cover—
(a) a letter of credit which meets the conditions in paragraph (3);
(b) a cash deposit in a bank account specified by the Settlement Body in accordance with paragraph (4).
(3) The conditions in this paragraph are that the letter of credit is—
(a) issued by a qualifying bank;
(b) in sterling;
(c) available for payment at a London branch of the issuing bank against a notice of drawing delivered by the Settlement Body; and
(d) valid—
(i) at least until the end of the credit obligation period; or
(ii) if the credit obligation period is more than 6 months, for a period of not less than 6 months.
(4) A bank account specified by the Settlement Body for the purpose of paragraph (2)(b) must—
(a) be an interest bearing account in the name of the Settlement Body;
(b) be used only for the purpose of holding credit cover provided under these Regulations; and
(c) be an account the funds in which may only be withdrawn by or on behalf of the Settlement Body.

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Source: https://www.legislation.gov.uk/ukdsi/2014/9780111116852/regulation/54 (the official version)
Page: https://openlegislation.uk/draft-electricity-capacity-regulations-2014/regulation-54
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.