Regulation 28 Requirement to provide supplier credit cover

(1)

By no later than 12 working days before the commencement of month M, each electricity supplier who has been given notice of a schedule of monthly credit cover must provide to the Settlement Body credit cover—

(a)

to at least the amount specified in the schedule for month M (“the required amount”); and

(b)

which the Settlement Body may draw down at any time during the period commencing with the date it is provided and ending with the 11th working day of month M.

(2)

By no later than 9 working days before the commencement of month M, the Settlement Body must—

(a)

if S has not provided credit cover, or has provided credit cover for less than the required amount, give S notice of that fact;

(b)

if S has provided credit cover—

(i)

determine in accordance with regulation 55(1)(a) of the Principal Regulations whether the credit cover is approved; and

(ii)

give S the notice required by regulation 55(1)(b) of the Principal Regulations.

(3)

Where a notice is given under paragraph (2)(a), or a notice is given under paragraph (2)(b) that credit cover is not approved or approved only in part—

(a)

S must be entered by the Settlement Body on the credit default register as being in “capacity market stage 1 credit default” in respect of month M; and

(b)

S must provide credit cover (or further credit cover) to the Settlement Body by no later than 5 working days after the notice is given under paragraph (2).

(4)

Where credit cover is provided under paragraph (3)(b), the Settlement Body must by no later than 2 working days before the commencement of month M—

(a)

determine in accordance with regulation 55(1)(a) of the Principal Regulations whether the credit cover is approved; and

(b)

give S the notice required by regulation 55(1)(b) of the Principal Regulations.