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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

Capacity market supplier charge: mutualisation payments

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5.—(1) If, in respect of a month of a delivery year (“month M”), one or more electricity suppliers is in capacity market stage 2 credit default, the Settlement Body must calculate in accordance with sub-paragraphs (2) and (3) the mutualisation payment to be made by each electricity supplier (“S”) who is not in such default (“MPsm”).

(2) If the calculation date is before the date on which the Settlement Body makes the calculations required by paragraph 3, then MPsm must be calculated in accordance with the formula—

(3) If the calculation date is on or after the date on which the Settlement Body makes the calculations required by paragraph 3, then MPsm must be calculated in accordance with the formula—

(4) In this paragraph—

“∑dPMCMSCdm” means the sum of the amounts calculated under paragraph 2(1)(c) for month M for every electricity supplier who is in capacity market stage 2 credit default in respect of month M;

“PSCsx” means the amount calculated under paragraph 2(1)(a) for supplier S and year X;

“∑nPSCnx” means the sum of the amounts calculated under paragraph 2(1)(a) for year X for every electricity supplier who is not in capacity market stage 2 credit default in respect of month M;

“∑dRMCMSCdm” means the sum of the amounts calculated under paragraph 3(1)(c) for month M for every electricity supplier who is in capacity market stage 2 credit default in respect of month M;

“RSCsx” means the amount calculated under paragraph 3(1)(a) for supplier S and year X;

“∑nRSCnx” means the sum of the amounts calculated under paragraph 3(1)(a) for year X for every electricity supplier who is not in capacity market stage 2 credit default in respect of month M; and

“year X” means the delivery year in which month M falls.

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