PART 6Payments
CHAPTER 2Calculations and determinations: capacity providers
Termination fees43
1
A capacity provider must pay to the Settlement Body a termination fee, by way of a financial penalty, if—
a
a capacity agreement is terminated on a ground specified in capacity market rules; and
b
capacity market rules specify that a termination fee is payable in the event of the capacity agreement being terminated on that ground.
F11A
A termination fee is payable in accordance with paragraph (1) if the capacity agreement is terminated in accordance with capacity market rules, notwithstanding that the termination does not take effect until after the expiry of the delivery year, or period of delivery years, to which the capacity agreement relates (“the relevant period”).
2
The Settlement Body must, as soon as reasonably practicable after receiving notice of the termination of a capacity agreement on a ground for which a termination fee is payable—
a
determine the amount in pounds of the termination fee that is payable; and
b
issue to the capacity provider an invoice for that amount.
F43
Where capacity market rules specify that F3TFx is payable (for any value of x from x = 1 to x = 5), the amount must be determined in accordance with the formula—
F54
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
In this regulation—
“CO” means the capacity obligation in MW for which the capacity agreement was issued, as specified in the capacity market register;
F6“TFxrate” (for any value of x from x = 1 to x = 5) means the rate in pounds per MW determined in accordance with regulation 32 and specified on the capacity market register as the rate at which TFx is payable under the capacity agreement.
F26
In this regulation, references to the termination of a capacity agreement include references to the termination of a transferred part; and for that purpose—
a
the reference to the relevant period in paragraph (1A) is to be construed as a reference to the transfer period as defined in regulation 30A(1)(b); and
b
“CO” in paragraph (5) means the capacity obligation in MW comprised in that transferred part as specified on the capacity market register.