# The Electricity Capacity Regulations 2014, Paragraph 7: Over-delivery payments


(1) The Settlement Body must, after the end of each delivery year (“year X”), determine for each relevant CMU (“CMU i”)—
(a) the over-delivery rate in £/MWh applying to CMU i in respect of each relevant settlement period in year X (“ODRij”);
(b) the amount in pounds of the over-delivery payment applying to CMU i in respect of each such settlement period in which CMU i over-delivered (“ODPij”); and
(c) the amount in pounds of the total over-delivery payment applying to CMU i in respect of year X (“TODPix”).
(2) Subject to sub-paragraph (2A), ODRij must be calculated in accordance with the formula—
ODRix=min(PRix,TPRxTODVx).
(2A) For the purposes of the calculation in paragraph (2), where the over-delivery payment is to be made to a qualified person who is not a capacity provider in settlement period j, the value of PRij is deemed to be equal to the penalty rate applying to a capacity obligation awarded in the T-4 auction for year X and calculated in accordance with paragraph 5.
(3) ODPijmust be calculated in accordance with the formula—
ODPij=ODRix×(AEij−ALFCOij).
(4) TODPixmust be calculated as the sum of ODPij for all the relevant settlement periods in year X in which CMU i over-delivered.
(5) For the purposes of this paragraph—
“over-delivered” is to be interpreted in accordance with regulation 42(2);
“PRij” means the penalty rate in pounds per MWh applying to CMU i in respect of settlement period j, as calculated in accordance with paragraph 5
“qualified person” has the meaning given in regulation 42(2);
a “relevant CMU” means a capacity committed CMU in respect of which AEij is greater than ALFCOij in one or more relevant settlement periods in year X;
“TODVx” means the aggregate in MWh of the total amounts over-delivered in year X by all relevant CMUs;
“TPRx” means the total amount of capacity market penalty charge payments received by the Settlement Body in respect of year X.

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Source: https://www.legislation.gov.uk/uksi/2014/2043/schedule/1/paragraph/7 (the official version)
Page: https://openlegislation.uk/electricity-capacity-regulations-2014/schedule-1/paragraph-7
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.