# The Electricity Capacity Regulations 2014, 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 (“ OD R ix ”);
(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 (“ OD P ij ”); and
(c) the amount in pounds of the total over-delivery payment applying to CMU i in respect of year X (“ TOD P ix ”).
(2) OD R ix must be calculated in accordance with the formula—
OD R ix =min( P R ix , TP R x TOD V x ).
(3) OD P ij must be calculated in accordance with the formula—
OD P ij =OD R ix ×( A E ij −ALFC O ij ).
(4) TOD P ix must be calculated as the sum of OD P ij 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 ix ” 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 ij is greater than ALFC O ij in one or more relevant settlement periods in year X;
“ TOD V x ” means the aggregate in MWh of the total amounts over-delivered in year X by all relevant CMUs;
“ TP R x ” means the total amount of capacity market penalty charge payments received by the Settlement Body in respect of year X.

---
Source: https://www.legislation.gov.uk/ukdsi/2014/9780111116852/schedule/1/paragraph/7 (the official version)
Page: https://openlegislation.uk/draft-electricity-capacity-regulations-2014/schedule-1/paragraph-7
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.