The Electricity Capacity Regulations 2014

Termination of capacity agreements: CFDs and ROO conversions E+W+S

34.—(1) The Delivery Body must terminate a capacity agreement (“A”) issued following a T-4 capacity auction where, by no later than 16 months before the start of the delivery period, the Delivery Body receives in respect of A—

(a) a CFD transfer notice; or

(b) a ROO conversion notice.

(2) The Delivery Body must—

(a) comply with paragraph (1) immediately it receives the notice; and

(b) as soon as reasonably practicable, give a notice that it has terminated A to—

(i) the capacity provider in respect of A;

(ii) the Settlement Body; and

(iii) the CFD counterparty in respect of a CFD transfer notice or the Authority in respect of a ROO conversion notice.

[F1 (2A) Subject to paragraph (2B), a CFD transfer notice must include a statement verifying the truth of the statements contained in the CFD transfer notice, which is signed by two directors of the capacity provider or, in the case of a capacity provider which is not a company, by two persons duly authorised by the capacity provider.

(2B) If a capacity provider has a sole director, references to “directors” in paragraph (2A) are to be read as the sole director.]

(3) In this regulation—

[F2 “allocation round” means an allocation round established by the Secretary of State under regulation 4 of the Contracts for Difference (Allocation) Regulations 2014;]

[F3 “CFD transfer notice” means a notice from the capacity provider in respect of CMU i which—

(a)

identifies A;

(b)

states that the capacity provider in respect of CMU i seeks the termination of A in order to become eligible to apply for a CFD in an allocation round;

(c)

identifies the specific allocation round in which the capacity provider intends to apply;

(d)

requests that the Delivery Body terminate A; and

(e)

complies with paragraph (2A);]

“CMU i” means the CMU to which A applies;

“the delivery period” means the delivery year or the period of delivery years for which A imposes a capacity obligation;

“ROO conversion notice” means a notice from the capacity provider in respect of A which—

(a)

identifies A;

(b)

states that the capacity provider intends to claim ROCs in respect of CMU i as a unit conversion or as part of a station conversion for any of the delivery period; and

(c)

includes a written confirmation from the Authority that at least one ROC has been issued in respect of CMU i as a unit conversion or as part of a station conversion since the date A was awarded;

“station conversion” has the same meaning as it has in the ROO M1 ; and

“unit conversion” has the same meaning as it has in the ROO M2 .

Textual Amendments

F1 Reg. 34(2A)(2B) inserted (22.7.2023) by The Electricity Capacity (Amendment) Regulations 2023 (S.I. 2023/860), regs. 1(2), 4(a)

F2 Words in reg. 34(3) inserted (22.7.2023) by The Electricity Capacity (Amendment) Regulations 2023 (S.I. 2023/860), regs. 1(2), 4(b)(i)

F3 Words in reg. 34(3) substituted (22.7.2023) by The Electricity Capacity (Amendment) Regulations 2023 (S.I. 2023/860), regs. 1(2), 4(b)(ii)

Marginal Citations

M1 The definition of “station conversion” was inserted into S.I. 2009/785 by S.I. 2013/768, and into S.S.I. 2009/140 by S.S.I. 2013/116.

M2 The definition of “unit conversion” was inserted into S.I. 2009/785 by S.I. 2013/768, and into S.S.I. 2009/140 by S.S.I. 2013/116.