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The Electricity Capacity (Supplier Payment etc.) Regulations 2014

Draft Legislation:

This is a draft item of legislation. This draft has since been made as a UK Statutory Instrument: The Electricity Capacity (Supplier Payment etc.) Regulations 2014 No. 3354

Non-payment of invoices: draw down of credit cover

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12.—(1) Paragraph (2) applies where an electricity supplier (“S”) is in default in respect of an invoiced monthly capacity market supplier charge.

(2) Where this paragraph applies the Settlement Body must—

(a)give a notice (a “credit default notice”) to S which states that the Settlement Body intends to draw down on S’s supplier credit cover to pay the outstanding invoiced amount and the accruing interest which applies to that amount (“the debt plus interest”) if S does not pay the debt plus interest in full by no later than the 9th working day of the month to which the invoice relates; and

(b)give the credit default notice by no later than the 7th working day of the month to which the invoice relates.

(3) Where S does not pay the debt plus interest in accordance with the credit default notice, the Settlement Body must draw down on S’s credit cover for the debt plus interest (or so much of it as is covered by the credit cover) by no later than the 11th working day of the month to which the invoice relates.

(4) Where supplier credit cover is drawn down under this regulation, the Settlement Body must treat the amount drawn down as a payment, or part payment, of the debt plus interest.

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