DSR unproven capacity fee43ZB

1

A capacity provider (“C”) in respect of a demand side response CMU (“CMU i”) must pay to the Settlement Body a fee (a “DSR unproven capacity fee”), by way of financial penalty, if C has in accordance with capacity market rules provided to the Delivery Body a DSR test certificate which evidences CMU i’s proven DSR capacity is an amount less than CMU i’s de-rated capacity.

2

Where a DSR unproven capacity fee would be payable by C before the T-1 capacity agreement trigger event has occurred, this fee only becomes payable if the T-1 capacity agreement trigger event occurs.

3

Subject to paragraph (4), the Settlement Body must, as soon as reasonably practicable after receiving notice from the Delivery Body that C has provided a DSR test certificate which gives rise to a DSR unproven capacity fee—

a

determine the amount in pounds of the DSR unproven capacity fee that is payable (or which would be payable if the T-1 capacity agreement trigger event occurred); and

b

issue to the capacity provider an invoice for that amount.

4

An invoice under paragraph (3)(b) must only be issued on or after the date on which the T-1 capacity agreement trigger event occurred.

5

The DSR unproven capacity fee payable by C in respect of CMU i is—

a

where CMU i’s proven DSR capacity is less than 90% of CMU i’s de-rated capacity, UCF 1; and

b

where CMU i’s proven DSR capacity is equal to or greater than 90% of CMU i’s de-rated capacity, UCF 2.

6

In this regulation—

• “UCF 1” means an amount equal to £5000 per MW of the amount of the de-rated capacity of CMU i; and

• “UCF 2” means an amount calculated in accordance with the formula—

  $$UCF2=UCF1\times \left(\left(DC-PC\right)/DC\right)$$

7

In paragraph (6)—

• “DC” means CMU i’s de-rated capacity; and

• “PC” means CMU i’s proven DSR capacity.