Paragraph 7 Over-delivery payments

(1)

The Settlement Body must, after the end of each delivery year (“year X”), determine for each relevant CMU (“CMU i”)—

(a)

the over-delivery rate in £/MWh applying to CMU i in respect of relevant settlement periods in year X (“ $O D R_{i x}$ ”);

(b)

the amount in pounds of the over-delivery payment applying to CMU i in respect of each such settlement period in which CMU i over-delivered (“ $O D P_{i j}$ ”); and

(c)

the amount in pounds of the total over-delivery payment applying to CMU i in respect of year X (“ $T O D P_{i x}$ ”).

(2)

$O D R_{i x}$ must be calculated in accordance with the formula—

O D R_{i x} = \min (P R_{i x}, \frac{T P R_{x}}{T O D V_{x}}) .

(3)

$O D P_{i j}$ must be calculated in accordance with the formula—

O D P_{i j} = O D R_{i x} \times (A E_{i j} - A L F C O_{i j}) .

(4)

$T O D P_{i x}$ must be calculated as the sum of $O D P_{i j}$ for all the relevant settlement periods in year X in which CMU i over-delivered.

(5)

For the purposes of this paragraph—

“over-delivered” is to be interpreted in accordance with regulation 42(2);
“ $P R_{i x}$ ” means the penalty rate in pounds per MWh applying to CMU i in respect of year X, as calculated in accordance with paragraph 5;

a “relevant CMU” means a capacity committed CMU in respect of which $A E_{i j}$ is greater than $A L F C O_{i j}$ in one or more relevant settlement periods in year X;
“ $T O D V_{x}$ ” means the aggregate in MWh of the total amounts over-delivered in year X by all relevant CMUs;
“ $T P R_{x}$ ” means the total amount of capacity market penalty charge payments received by the Settlement Body in respect of year X.