PART 6Payments
CHAPTER 4Payment and non-payment
Reducing capacity payments: failure to demonstrate satisfactory performanceC150
1
This regulation applies in relation to a capacity committed CMU (“CMU i”) and a delivery year (“year X”) if—
a
a satisfactory performance requirement applies in respect of CMU i in year X; and
b
the requirement has not been met by 30th April in year X.
2
If, by the end of a relevant month, the capacity provider in respect of CMU i (“C”) has not complied with the satisfactory performance requirement, no monthly capacity payment is to be paid in respect of CMU i for that month.
F12A
If C complies with the satisfactory performance requirement during May in year X, no monthly capacity payment is to be paid in respect of CMU i for that month.
3
a
A is the number of days in the relevant month before the day on which C complies with the satisfactory performance requirement; and
b
B is the number of days in the relevant month.
4
If C has not complied with the satisfactory performance requirement by the end of year X—
a
C must repay to the Settlement Body all capacity payments made in respect of CMU i and year X F4less the total amount of any capacity provider penalty charges that C has paid in respect of CMU i and year X; and
b
the Settlement Body must, as soon as reasonably practicable after the end of year X, issue an invoice to C for the amount F5due under sub-paragraph (a).
5
The Settlement Body must—
a
if paragraph (2) F3or paragraph (2A) applies, give a notice to C which states that no monthly capacity payment is to be paid in respect of CMU i for the relevant month, and states the reason;
b
if paragraph (3) applies, ensure that the credit note issued to C for the relevant month states the amount by which the credit is reduced, and states the reason;
c
if paragraph (4) applies, ensure that the invoice issued to C under paragraph (4)(b) states the reason for the issue of the invoice.
6
In this regulation—
“relevant month” means May, June, July, August or September in year X;
“satisfactory performance day” has the meaning given in the Rules;
“satisfactory performance requirement” means a requirement in capacity market rules for a capacity provider to demonstrate satisfactory performance days in respect of a capacity committed CMU.