PART 7E+W+SCredit cover

CHAPTER 2E+W+SApplicant credit cover

Requirement to provide applicant credit coverE+W+S

59.—(1) [F1Subject to [F2paragraph] (1B), an applicant] to prequalify for a capacity auction in respect of a CMU (“CMU i”) must, if the applicant receives from the Delivery Body a conditional prequalification notice under capacity market rules, provide applicant credit cover in the amount determined in accordance with paragraph (2).

F3(1A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F4(1B) Where an applicant provides applicant credit cover for a capacity auction in respect of an unproven demand side response CMU [F5or an interconnector CMU], the applicant is not required to provide further applicant credit cover for any subsequent capacity auction in respect of that CMU except in circumstances specified in capacity market rules.]

(2) [F6Subject to paragraphs (2A) and (2B), the amount] of applicant credit cover to be provided is—

[F7(a)in the case of an application to prequalify for a T-4 auction or a T-1 auction—

(i)if CMU i is an unproven demand side response CMU, an amount equal to £5,000 per MW of the de-rated capacity of CMU i; and

(ii)if CMU i is not an unproven demand side response CMU, an amount equal to £10,000 per MW of the de-rated capacity of CMU i;]

(b)in the case of an application to prequalify for a DSR transitional auction, an amount equal to £500 per MW of the de-rated capacity of CMU i.

[F8(2A) Paragraph (2B) applies where an applicant for a supplementary auction is required to provide credit cover in accordance with this regulation.

(2B) Where at the time applicant credit cover must be provided for the supplementary auction the applicant is maintaining applicant credit cover in accordance with regulation 60 for any other capacity auction (including a T-4 auction held in the same auction window as the supplementary auction) in respect of a CMU (“the original credit cover”)—

(a)in order to prequalify for the supplementary auction in respect of that CMU, the applicant is not required to provide additional credit cover of an amount exceeding the difference between—

(i)the amount determined under paragraph (2)(a), and

(ii)the amount of the original credit cover;

(b)the original credit cover is included in the credit cover that may be drawn down under regulation 61(1)(c) in relation to a capacity agreement awarded in the supplementary auction; and

(c)notwithstanding sub-paragraph (h) of regulation 60(1), any credit cover drawn down in relation to that agreement must be replaced in accordance with the obligation under regulation 60(1) to maintain the original credit cover.]

(3) If A is required to provide credit cover under paragraph (1), A must do so within [F915 working days] after receiving the conditional prequalification notice.

[F10(4) In circumstances specified in capacity market rules, the applicant credit cover provided under paragraph (1) in respect of a new build CMU must, where twelve months have elapsed after auction results day, be increased by the capacity provider to an amount equal to £15,000 per MW of de-rated capacity.

(5) The increased credit cover required to be provided under paragraph (4) must be provided within 15 working days after the end of that twelve-month period.

(6) For the purposes of paragraph (4)—

(a)“new build CMU” has the meaning given in the Rules; and

(b)“auction results day” means the date on which the auction results are published under regulation 25(1)(c).]

Textual Amendments