Paragraph 3 Capacity payments: calculations to be made annually for each capacity committed CMU

(1)

The Settlement Body must, by no later than 3 months before the commencement of a delivery year (“year X”), calculate in respect of each capacity committed CMU (“CMU i”)—

(a)

the total amount in pounds of the capacity payments which, subject to regulation 40(5) and (6) and to regulations 49 to 51, are payable in respect of CMU i for year X (“ $A C P_{i x}$ ”); and

(b)

in respect of each month of year X (“month M”), the amount in pounds of the capacity payment which, subject to those regulations, is payable in respect of CMU i for that month (“ $M C P_{i m}$ ”).

(2)

$A C P_{i x}$ must be calculated in accordance with the formula—

A C P_{i x} = C O_{i x} \times P E_{i x} .

(3)

$M C P_{i m}$ must be calculated in accordance with the formula—

M C P_{i m} = A C P_{i x} \times W F_{m x} .

(4)

For the purpose of sub-paragraph (2), “ $P E_{i x}$ ” means the price in pounds per MW at which capacity payments are payable in respect of CMU i for year X, which is to be determined in accordance with sub-paragraphs (5) and (6).

(5)

If the relevant capacity auction was a T-4 auction, $P E_{i x}$ is to be calculated in accordance with the formula—

P E_{i x} = C C P_{i} \times \frac{C P I_{x}}{C P I_{b a s e}} .

(6)

If the relevant capacity auction was a T-1 auction or a DSR transitional auction, $P E_{i x}$ is equal to $C C P_{i}$ .

(7)

In this paragraph—

“ $C C P_{i}$ ” means the capacity cleared price for CMU i, as recorded on the capacity market register;
“ $C O_{i x}$ ” means the capacity obligation in MW, as recorded on the capacity market register, applying to CMU i for year X;
“ $C P I_{b a s e}$ ” means the average of the monthly values of CPI for the months of the base period determined under regulation 11 for the relevant capacity auction;
“ $C P I_{x}$ ” means the average of the monthly values of CPI for the months of the winter ending on the 30th April preceding the start of year X;
“relevant capacity auction” means the capacity auction in which the capacity obligation applying to CMU i was awarded;
“ $W F_{m x}$ ” means the weighting factor determined under paragraph 2 for month M.