# The Electricity Capacity (No. 1) Regulations 2019, Regulation 65: Subsequent capacity auctions: credit cover arrangements


Regulation 59 (requirement to provide applicant credit cover) of the Principal Regulations applies in relation to the subsequent capacity auctions (including the rights and obligations arising out of, or in relation to, those auctions) and capacity agreements that existed on 15th November 2018 as if, after paragraph (1B), there were inserted—
“(1BA) This paragraph applies where—
(a) an applicant is required to provide applicant credit cover under paragraph (5A) in respect of an unproven demand side response CMU or an interconnector CMU for a capacity auction which concluded prior to 15th November 2018 (“suspended credit cover”);
(b) the applicant has provided credit cover in respect of that CMU for—
(i) the T-1 auction for the delivery year commencing on 1st October 2020;
(ii) the T-3 auction; or
(iii) the T-4 auction for the delivery year commencing on 1st October 2023,
in accordance with this regulation (“subsequent credit cover”); and
(c) if the applicant had provided the suspended credit cover before the subsequent credit cover, the applicant would have been eligible to receive an exemption from the requirement to provide some or all of the subsequent credit cover pursuant to paragraph (1B) and capacity market rules.
(1BB) Where paragraph (1BA) applies subsequent credit cover provided by the applicant in respect of the CMU may, to the extent it would not have been required to be provided if an exemption had been obtained pursuant to paragraph (1B) and capacity market rules, instead, at the applicant’s request, and in accordance with capacity market rules, be treated thereafter as applicant credit cover which—
(a) was provided in relation to the applicant’s obligation to provide suspended credit cover under paragraph (5A) in respect of the CMU; and
(b) for the purposes of paragraph (1B), existed at the date on which the applicant was required to provide subsequent credit cover in respect of the CMU.”

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Source: https://www.legislation.gov.uk/uksi/2019/862/regulation/65 (the official version)
Page: https://openlegislation.uk/electricity-capacity-no-1-regulations-2019/regulation-65
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.