Paragraph 3 Capacity payments: calculations to be made annually for each capacity committed CMU

The Settlement Body must, by no later than 3 months before the commencement of a delivery year (“year X”), calculate in respect of each capacity committed CMU (“CMU i”)—

ACP_yx (for any value y) must be calculated in accordance with the formula—

$AC{P}_{yx}=C{O}_{yx}\times P{E}_{yx}$.

MCP_im must be calculated in accordance with the formula—

$MC{P}_{im}=W{F}_{mx}\times \left(AC{P}_{ix}+{\displaystyle {\sum }_{N}tAC{P}_N}\times \frac{D{T}_{mN}}{D_m}\right)$.

For the purpose of sub-paragraph (3) tACP_N is the amount $AC{P}_{zx}\times \frac{tIC{O}_{iN}}{C{O}_{zx}}$,

where—

• “tICO_iN” is any obligation, being the whole or part of the capacity obligation CO_zx, that has been transferred so as to—

  1. (a)

     apply to CMU i for all or part of month M, or

  2. (b)

     cease to apply to CMU i for all or part of month M (in which case tACP_N is to be expressed as a negative number);

• “DT_mN” means the number of days in month M for which that capacity obligation has been transferred;

• “D_m” means the total number of days in month M.

For the purpose of sub-paragraph (2), “F3PE_yx” means the price in pounds per MW at which capacity payments are payable in respect of CO_yx, which is to be determined in accordance with F4sub-paragraph (5).

If the relevant capacity auction was a T-4 auction, $P{E}_{ix}$ is to be calculated in accordance with the formula—

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

In this paragraph—

• F7“CCP_y” means the capacity cleared price for CO_yx, as recorded on the capacity market register

• F8...

• “$CP{I}_{base}$” means the average of the monthly values of CPI for the months of the base period F9referred to in regulation 11 for the relevant capacity auction;

• “$CP{I}_x$” means the average of the monthly values of CPI for the months of the winter ending on the 30th April preceding the start of year X;

• “relevant capacity auction” means the capacity auction in which F10CO_yx was awarded;

• F11...