Paragraph 7 Over-delivery payments

The Settlement Body must, after the end of each delivery year (“year X”), determine for each relevant CMU (“CMU i”)—

F2Subject to sub-paragraph (2A), F3ODR_ij must be calculated in accordance with the F4formula—

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 PR_ij 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.

$OD{P}_{ij}$must be calculated in accordance with the F6formula—

$TOD{P}_{ix}$must be calculated as the sum of $OD{P}_{ij}$ for all the relevant settlement periods in year X in which CMU i over-delivered.

For the purposes of this paragraph—

• “over-delivered” is to be interpreted in accordance with regulation 42(2);

• F7“PR_ij” 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

• F8“qualified person” has the meaning given in regulation 42(2);

• a “relevant CMU” means a capacity committed CMU in respect of which $A{E}_{ij}$ is greater than $ALFC{O}_{ij}$ in one or more relevant settlement periods in year X;

• “$TOD{V}_x$” means the aggregate in MWh of the total amounts over-delivered in year X by all relevant CMUs;

• “$TP{R}_x$” means the total amount of capacity market penalty charge payments received by the Settlement Body in respect of year X.