Q&As

Do the Capacity Market Rules permit changes in ownership of a prequalified Capacity Market Unit (CMU) prior to the point a capacity agreement is awarded in respect of the relevant CMU?

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Published on LexisPSL on 01/08/2017

The following Energy Q&A provides comprehensive and up to date legal information covering:

  • Do the Capacity Market Rules permit changes in ownership of a prequalified Capacity Market Unit (CMU) prior to the point a capacity agreement is awarded in respect of the relevant CMU?

In answering this Q&A, research has been limited to cover the Capacity Market Rules 2014 (CM Rules) (including amendments effective as at today’s date) and the provisions of the electricity and any relevant provisions of the Electricity Capacity Regulations 2014 (as amended) (CM Regulations). See here for the CM Rules: Capacity Market Rules and here for the CM Regulations: Electricity Capacity Regulations 2014, SI 2014/2043. We have also reviewed the National Grid (NG) Capacity Market Auction User Guides, Auction Guidelines, and Capacity Auction Bidding Company and Authorised Individual Management Guidelines (all available through the NG EMR Delivery Body webpage), in respect of recent auctions, along with current and historic Capacity Market ‘FAQ’ documents issued by government (August/December 2014 and November 2016).

The CM Rules and CM Regulations do not appear to allow for a CMU change of ownership between prequalification and the award of a capacity agreement. This is most clearly set out at CM Regulations, SI 2014

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