# The Electricity Capacity Regulations 2014, Regulation 12: Determination of auction parameters by the Secretary of State


(1) For each capacity auction, the Secretary of State must determine each of the auction parameters referred to in sub-paragraphs (a) to (d) of regulation 11(1).
(2) For each T-4 auction, the Secretary of State must also—
(a) determine the auction parameters referred to in sub-paragraphs (e) and (f) of regulation 11(1); and
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2A) When determining under paragraph (1) the auction parameter referred to in regulation 11(1)(b) (auction target capacity) in respect of a T-4 auction and the delivery year for which that T-4 auction is to be held (“delivery year x”), the Secretary of State must—
(a) determine the target capacity for the capacity year corresponding to delivery year x;
(b) determine the target capacity for the capacity year corresponding to delivery year x that should be set aside for the T-1 auction for delivery year x (“the T-1 auction set aside”) in accordance with paragraph (2B); and
(c) deduct the T-1 auction set aside from the target capacity for the capacity year corresponding to delivery year x.
(2B) For the purposes of paragraph (2A)(b), the Secretary of State must determine the T-1 auction set aside by applying a 95% confidence interval around the target capacity for the capacity year corresponding to delivery year x.
(2C) For each T-1 auction, where the delivery year corresponds with delivery year x, the Secretary of State must determine the auction parameter referred to in regulation 11(1)(b) (auction target capacity) to be an amount equal to or greater than 50% of the T-1 auction set aside if previously determined under paragraph (2A)(b) for the T-1 auction for delivery year x.
(3) The determinations under paragraphs (1) and (2) are subject to any adjustments which may be made under regulations 13 and 28.
(4) The Secretary of State must—
(a) make the determinations under paragraph (1) and, if applicable, paragraph (2), and give notice of them to the Delivery Body as soon as reasonably practicable after publishing a decision to hold a capacity auction; and
(b) publish the determinations.
(5) In making the determinations under paragraphs (1) and (2), the Secretary of State must take into account—
(a) the electricity capacity report ...;
(b) the reliability standard; and
(c) the matters specified in section 5(2) of the Act.
(6) If the auction target capacity determined by the Secretary of State for a T-1 auction or a T-4 auction is different from a recommendation in the electricity capacity report as to the portion of the target capacity that should be used in that capacity auction, the determination must include an explanation of—
(a) the Secretary of State’s reasons for not following that recommendation; and
(b) the basis upon which the Secretary of State has made the determination.
(7) In this regulation—
“the 95% confidence interval” means the range of values within which the target capacity for a capacity year may be expected to lie with a 0.95 level of probability;
“auction target capacity” has the meaning given in regulation 11(3).

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Source: https://www.legislation.gov.uk/uksi/2014/2043/regulation/12 (the official version)
Page: https://openlegislation.uk/electricity-capacity-regulations-2014/regulation-12
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.