PART 6Payments

CHAPTER 2Calculations and determinations: capacity providers

Capacity provider penalty charges41.

(1)

A capacity provider (“C”) must pay to the Settlement Body a capacity provider penalty charge in respect of any month of a delivery year (“month M”) if, in respect of month M, a settlement period penalty applies to one or more capacity committed CMUs for which C was the capacity provider during month M.

(2)

If one or more capacity providers are liable to pay a capacity provider penalty charge in respect of month M the Settlement Body must, by no later than the F135th working day after the end of month M—

(a)

determine the amount, if any, payable by each capacity provider in respect of capacity provider penalty charges incurred in month M; and

(b)

issue to each capacity provider which is liable to pay capacity provider penalty charges an invoice for the amount determined for it.

(3)

The amount payable by C under paragraph (2)(a) is the sum of—

(a)

F2MPSAim, as calculated under paragraph 6 of Schedule 1, for each capacity committed CMU for which C was registered on the capacity market register as the capacity provider for the whole of month M; and

(b)

C’s proportion of F3MPSAim, as calculated under paragraphs 6 and 8 of Schedule 1, for each capacity committed CMU for which C was registered on the capacity market register as the capacity provider for part of month M.

F4(3A)

The percentages to be included in the capacity market register under regulation 31(2)(f) are—

(a)

for the annual penalty cap, 100%; and

(b)

for the monthly penalty cap, 200%.

(4)

In paragraph (1), “settlement period penalty” means a penalty calculated under paragraph 5 of Schedule 1.