Regulation 8 Penalty residual supplier amountI1

England, Wales and Scotland

(1)

An electricity supplier (“S”) who has paid capacity market supplier charges in respect of a delivery year (“year X”) is, subject to paragraph (2), entitled to receive from the Settlement Body following the end of year X payment of a share of the capacity provider penalty charges collected from capacity providers under regulation 41 of the Principal Regulations in respect of year X (a “penalty residual supplier amount”).

(2)

S is not entitled to receive a penalty residual supplier amount if, in respect of year X—

(a)

no capacity provider penalty charges are collected from capacity providers; or

(b)

the total amount of over-delivery payments paid to capacity providers under regulation 42 of the Principal Regulations equals the total amount of capacity provider penalty charges collected from capacity providers.

(3)

The Settlement Body must, by no later than the F128th working day after the end of each delivery year—

(a)

determine the penalty residual supplier amount, if any, payable to each electricity supplier in respect of that delivery year; and

(b)

issue to each electricity supplier—

(i)

a credit note for the amount determined for that supplier under sub-paragraph (a); or

(ii)

if paragraph (2) applies, a notice that no penalty residual supplier amount is payable in respect of year X.

(4)

The determination required by paragraph (3)(a) must be made in accordance with paragraph 6 of Schedule 1.

(5)

The amounts determined under paragraph (3)(a) are subject to reconciliation under Part 5.

Annotations

Textual amendments

F1: Word in reg. 8(3) substituted (14.7.2016) by The Electricity Capacity (Amendment) Regulations 2016 (S.I. 2016/742), reg. 1(2), Sch. 2 para. 3

Commencement

I1: Reg. 8 in force at 18.12.2014, see reg. 1(2)