# The Electricity Capacity Regulations 2014, Regulation 61: Draw down of applicant credit cover


(1) The Settlement Body must draw down applicant credit cover provided by A in respect of a CMU (“CMU i”) if—
(a) where CMU i is an unproven demand side response CMU—
(i) the credit obligation period has not ended by the date on which the delivery year of A’s capacity agreement in respect of CMU i commences; or
(ii) the Settlement Body receives a notice from the Delivery Body that A has provided a DSR test certificate which evidences a proven DSR capacity less than 90% of CMU i’s unproven DSR capacity;
(b) where CMU i is a prospective generating CMU, the credit obligation period has not ended by the latest of the date in paragraph (i) and such of the dates in paragraphs (ii) and (iii) as are applicable—
(i) the date falling 18 months after the date on which A was awarded a capacity agreement in respect of CMU i;
(ii) if CMU i is a distribution CMU in respect of which regulation 60(1)(g)(ii) applies, the date 18 months prior to the commencement of the first delivery year of A’s capacity agreement in respect of CMU i;
(iii) if the date by which a financial commitment milestone is required by capacity market rules to be met or a copy of a distribution connection agreement is required by capacity market rules to be provided in respect of CMU i is extended under regulation 33(2)(b), the date to which the requirement is extended; or
(c) payment of a termination fee has become due pursuant to an invoice issued under regulation 43, and the termination fee is unpaid.
(2) Where the Settlement Body is required to drawn down applicant credit cover—
(a) under sub-paragraph (a)(i) or (b) of paragraph (1), it must do so within 60 days from the date specified in that sub-paragraph;
(b) under sub-paragraph (a)(ii) of paragraph (1), it must do so within 60 days from the date on which the Settlement Body receives the notice referred to in that sub-paragraph;
(c) under sub-paragraph (c) of paragraph (1), it must do so as soon as reasonably practicable after the date on which payment of the termination fee becomes due.
(3) Subject to paragraph (4), applicant credit cover which is drawn down in accordance with this regulation is forfeited by A.
(4) If, after applicant credit cover has been drawn down, it is determined under Chapter 2 of Part 10 that the credit cover should not have been drawn down, the Settlement Body must pay to A the amount of the credit cover that was wrongly drawn down.

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Source: https://www.legislation.gov.uk/ukdsi/2014/9780111116852/regulation/61 (the official version)
Page: https://openlegislation.uk/draft-electricity-capacity-regulations-2014/regulation-61
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.