PART 6Payments

CHAPTER 4Payment and non-payment

Reducing capacity payments: failure to demonstrate satisfactory performance50.

(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.

F1(2A)

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)

If C complies with the satisfactory performance requirement during a relevant month F2other than May, the Settlement Body must ensure that the credit which would otherwise be payable to C in respect of the monthly capacity payment for CMU i for that month is reduced by the proportion ABmath, where—

(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 F3less 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 F4due under sub-paragraph (a).

(5)

The Settlement Body must—

(a)

if paragraph (2) F5or 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—

F6“extended performance” has the meaning given in the Rules;

“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 F7or extend performance during a satisfactory performance day in respect of a capacity committed CMU.