Paragraph 5 Capacity provider penalty charges: calculation of settlement period penalty applying to a capacity committed CMU

The Settlement Body must, after the end of each month of a delivery year (“year X”) in which one or more relevant settlement periods occur (“month M”), calculate in respect of each relevant CMU (“CMU i”) and each relevant settlement period (“settlement period j”) the settlement period penalty in pounds applying to CMU i in respect of settlement period j (“$SP{P}_{ij}$”).

$SP{P}_{ij}$must be calculated in accordance with the F1formula—

For the purpose of sub-paragraph (2), “PR_ij” is the penalty rate in pounds per MWh applying to CMU i in respect of settlement period j, and is to be calculated in accordance with the formula—

$PR{}_{ij}=\frac{\sum {}_N\left(PR{}_N\times ICO{}_{ijN}\right)}{\sum {}_{N}ICO{}_{ijN}}$

where—

• “ICO_ijN” is the whole or a part of any capacity obligation CO_zx applying to CMU i in settlement period j, and

• “PR_N” is the penalty rate applying to that capacity obligation.

For the purpose of sub-paragraph (2A), PR_N is to be calculated in accordance with the formula—

$P{R}_N=P{E}_{zx}\times \left(\frac{1}{24}\right)$.

In this paragraph—

• F4“PE_zx” means the price in pounds per MW determined for CO_zx in accordance with paragraph 3(4) F5to (5)

• “relevant CMU” means a capacity committed CMU in respect of which $A{E}_{ij}$ is less than $ALFC{O}_{ij}$ in one or more relevant settlement periods in month M.