Regulation 43 Termination fees

A capacity provider must pay to the Settlement Body a termination fee, by way of a financial penalty, if—

A termination fee is payable in accordance with paragraph (1) if the capacity agreement is terminated in accordance with capacity market rules, notwithstanding that the termination does not take effect until after the expiry of the delivery year, or period of delivery years, to which the capacity agreement relates (“the relevant period”).

The Settlement Body must, as soon as reasonably practicable after receiving notice of the termination of a capacity agreement on a ground for which a termination fee is payable—

Where capacity market rules specify that F3TFx is payable (for any value of x from x = 1 to x = F49), the amount must be determined in accordance with the formula—

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In this regulation—

• “CO” means the capacity obligation in MW for which the capacity agreement was issued, as specified in the capacity market register;

• F6“TFx_rate” (for any value of x from x = 1 to x = F79) means the rate in pounds per MW determined in accordance with regulation 32 and specified on the capacity market register as the rate at which TFx is payable under the capacity agreement.

In this regulation, references to the termination of a capacity agreement include references to the termination of a transferred part; and for that purpose—