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The Contracts for Difference (Electricity Supplier Obligations) Regulations 2014

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Estimated cost, income & electricity supplyU.K.

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7.[F1(1) The estimated quarterly obligation period payment cost in respect of a quarterly obligation period (“the rate period”) is the sum of [F2any SoS repayment and] the CFD counterparty’s estimates of TGPR and NDSR in respect of that period, estimated by the CFD counterparty having regard to the matters set out in paragraph (2).]

(2) The matters referred to in paragraph (1) are—

(a)the strike prices which, in the opinion of the CFD counterparty, will apply to CFDs F3... during the rate period;

(b)the CFD counterparty's estimate of—

(i)where payments under a CFD may become due in relation to the generation of electricity in a settlement hour by a CFD generating station, the amount of electricity generated by each such CFD generating station in each settlement hour F3... during the rate period;

(ii)where payments under a CFD may become due in relation to the generation of electricity in a settlement period by a CFD generating station, the amount of electricity generated by each such CFD generating station in each settlement period F3...during the rate period;

(iii)the market reference price which is to apply in relation to each settlement hour in respect of which a payment may become due during the rate period;

(iv)the market reference price which is to apply in relation to each settlement period in respect of which a payment may become due during the rate period;

F4(v). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) The estimated quarterly obligation period income in respect of the rate period is the [F5sum of [F6any SoS funds that the Secretary of State has specified will be available in respect of that rate period and that the Secretary of State has specified should be taken into account when calculating the interim levy rate under regulation 6 and/or adjusting the levy rate under regulation 13 and] the CFD counterparty’s estimates of TCPR and NGSR in respect of] the rate period having regard to—

(a)the matters in paragraph (2)(a) and (b)(i) to (iv);

F7(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c)the CFD counterparty's estimate of the likelihood of the failure of CFD parties to make CFD party payments in accordance with CFDs.

(4) The estimated quarterly obligation period electricity supply in respect of the rate period is the amount of electricity which the CFD counterparty estimates will be supplied by all electricity suppliers in the rate period [F8less the amount of EII excluded electricity which it estimates will be supplied by all suppliers in that period].

(5) In this regulation—

CFD generating station” means any generating station which is the subject of a CFD;

[F9“CP” and “GP” are to be construed in accordance with regulation 4;]

“market reference price”, “settlement hour”, “settlement period” and “strike price” are to be construed in accordance with CFDs to which the CFD counterparty is a party.

[F10“NDS” and “NGS” are to be construed in accordance with regulation 5;]

[F10“NDSR” means the NDS required to be paid by the CFD counterparty during the rate period;]

[F10“NGSR” means the NGS which is paid to the CFD counterparty during the rate period;]

[F10“TCPR” means the sum of all CP paid to the CFD counterparty in respect of electricity generation during the rate period; F11...]

[F10“TGPR” means the sum of all GP required to be paid by the CFD counterparty in respect of electricity generation during the rate period][F12; and

“SoS repayment” is to be construed in accordance with regulation 5].

(6) For the purposes of this regulation reference to a CFD includes reference to a connected agreement.

Textual Amendments

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