Paragraph 8 New regulation 43A

After regulation 43 insert—

“Non-completion fee

43A.

(1)

A capacity provider in respect of a new build interconnector CMU must pay to the Settlement Body a fee (a “non-completion fee”) by way of a financial penalty if, in circumstances specified for the purposes of this regulation by capacity market rules, the capacity provider fails to meet the completion requirements of the capacity agreement.

(2)

For the purposes of paragraph (1)—

• “completion requirements” are requirements to reach a level of operational capability specified in capacity market rules by the end of a delivery year;

• “new build interconnector CMU” means a prospective interconnector CMU which has not been commissioned.

(3)

The Settlement Body must, as soon as reasonably practicable after receiving notice in accordance with capacity market rules of the imposition of a non-completion fee—

(a)

determine the amount in pounds of the non-completion fee that is payable; and

(b)

issue to the capacity provider an invoice for that amount.

(4)

Paragraphs (3) to (5) of regulation 43 apply to the determination of the amount of a non-completion fee as they apply to the determination of the amount of a termination fee.

(5)

For the purposes of this regulation, references in regulation 32(1)—

(a)

to a “termination fee” are to be construed as references to a non-completion fee; and

(b)

to termination on a ground specified in capacity market rules are to be construed as references to a failure to meet completion requirements in circumstances so specified.”.