The Electricity Capacity (No. 1) Regulations 2019

Termination trigger events

6.—(1) If the Secretary of State is aware of a decision by a relevant authority after 15th November 2018 that has the consequence that it would not be in accordance with the law relating to state aid for capacity payments to be made to capacity providers in respect of—

(a) a capacity agreement that existed on 15th November 2018; or

(b) a conditional capacity agreement,

the Secretary of State must notify the Settlement Body of that decision as soon as reasonably practicable.

(2) If the Secretary of State is satisfied that there is no reasonable prospect that there will be a decision by a relevant authority before 1st October 2020 that would have the consequence that—

(a) the making of any capacity payments in relation to a capacity agreement that existed on 15th November 2018 would be in accordance with the law relating to state aid; or

(b) the making of any capacity payments to holders of agreements awarded to successful bidders in the conditional agreement auction would be in accordance with the law relating to state aid,

the Secretary of State must notify the Settlement Body and the Delivery Body by 1st October 2020 that that is the case.

(3) A notification by the Secretary of State under paragraph (1) or (2) terminates with immediate effect, and without any entitlement to capacity payments, any agreement of a kind specified in the notification.

(4) A notification by the Secretary of State under paragraph (1) or (2) must—

(a) specify the date of the notification;

(b) specify that the notification is given for the purposes of this regulation;

(c) specify whether the notification relates to either or both of the following kinds of agreement—

(i) capacity agreements that—

(aa) existed on 15th November 2018;

(bb) had not already expired by the effluxion of time, or been terminated, by the date on which the notification is given; and

(cc) contain a capacity obligation applying to the delivery year beginning on 1st October 2018 or any subsequent delivery year; and

(ii) conditional capacity agreements; and

(d) be published as soon as reasonably practicable after it is given.