UK Statutory Instrument 2014 United Kingdom

The Electricity Capacity Regulations 2014

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At a glance

Enforced by

Ofgem

What's here

70 compliance obligations, 1 practical guide · 1 journey

Penalty landscape

1 of 70 obligations carry an unlimited fine. 69 have no criminal penalty — flagged in the list below.

Who this Act binds

Business-side actors with duties under this Act, ranked by how often they appear.

  • Any Person 29
  • Trader 12
  • Distributor 1

Plus 28 non-business duties on Crown ministers, regulators, local authorities or tribunals — shown collapsed under each section below.

Step-by-step journeys using this legislation

Walkthroughs that take you from a real business situation to compliance.

Relevant guidance

Practical guides for businesses affected by this Act, ordered by how closely they engage with it.

Mentioned in related content

1 guides

Other Acts binding the same actors

For each actor bound by this Act, the other UK Acts that bind them most often. Useful for understanding the full compliance landscape facing each role.

Any Person also bound by 749 other Acts (top 5 shown)
Traders also bound by 219 other Acts (top 5 shown)
Distributors also bound by 33 other Acts (top 5 shown)

What this Act requires

Sections that create concrete duties on businesses or carry penalties. Procedural and definitional sections are folded into the “Browse other sections” expander at the bottom of each group. Click any section title to read the source text on legislation.gov.uk.

Part 1 — Introduction

s.005

“Demand side response CMU”

  • Meet eligibility and control requirements for Demand Side Response (DSR) Any Person
  • Provide and manage demand‑side response capacity in the Capacity Market Any Person
Browse 4 other sections in this Part — procedural / definitional / commencement
s."interconnector cmu"

"Interconnector CMU"

Part 2 — Reliability standard

Browse 1 other section in this Part — procedural / definitional / commencement

Part 3 — Electricity capacity reports

s.007

Annual electricity capacity report

Other duties (1) — Crown / regulator
  • National Grid must produce and submit an annual electricity capacity report Statutory regulator
Browse 1 other section in this Part — procedural / definitional / commencement

Part 4 — Capacity auctions

s.015

General eligibility criteria

  • Ensure your capacity unit meets eligibility for capacity auctions Any Person
Other duties (1) — Crown / regulator
  • Delivery Body must only qualify eligible projects for capacity auctions Statutory regulator
s.020

General duty of Delivery Body

  • Exercise capacity market functions in line with regulations Any Person
Other duties (1) — Crown / regulator
  • National Grid must perform duties to run the Capacity Market Statutory regulator
s.021

Auction guidelines

Other duties (1) — Crown / regulator
  • Delivery Body must publish capacity auction guidelines and timetables Statutory regulator
s.022

Determination of eligibility

Other duties (1) — Crown / regulator
  • Delivery Body must determine Capacity Market eligibility and notify applicants Statutory regulator
s.025

Notification of results

  • Notify and publish capacity auction results promptly Any Person
Other duties (1) — Crown / regulator
  • Delivery Body must notify and publish capacity auction results Statutory regulator
Browse 15 other sections in this Part — procedural / definitional / commencement
s.second dsr transitional auction

Second DSR transitional auction

Part 5 — Capacity agreements, capacity market register and termination

s.031

Capacity market register

Other duties (1) — Crown / regulator
  • Delivery Body must maintain the Capacity Market Register Statutory regulator
Browse 6 other sections in this Part — procedural / definitional / commencement
s.reduction of the duration of capacity agreements:

Reduction of the duration of capacity agreements: Secretary of State’s discretion

s.termination of capacity agreements: ccs cfds

Termination of capacity agreements: CCS CFDs

s.transfer of a capacity agreement

Transfer of a capacity agreement

Part 6 — Payments

s.037

Data default notices

  • Notify a capacity provider of data default and revoke when data is supplied Any Person
Other duties (1) — Crown / regulator
  • Settlement Body must issue a data default notice if requirements are missed Statutory regulator
s.038

Invoices and credit notes: general

  • Provide an email address for receiving invoices and credit notes Distributor
  • Provide an electronic address for invoices and credit notes Trader
s.040

Capacity payments

  • Keep records of your monthly capacity commitments for payment Any Person
Other duties (1) — Crown / regulator
  • Settlement Body must calculate and issue monthly capacity payments Statutory regulator
s.041

Capacity provider penalty charges

  • Pay capacity provider penalty charges for under-delivery Any Person
  • Pay capacity provider penalty charges when invoiced Trader
s.043

Termination fees

  • Pay termination fee if capacity agreement is terminated on specified grounds Trader
  • Pay termination fees if your capacity agreement is cancelled Any Person
s.047

The non-payment register

Other duties (1) — Crown / regulator
  • Settlement Body must maintain and publish a non-payment register Statutory regulator
s.048

Payment of credit notes

  • Pay capacity‑provider credit notes within 33 working days Any Person
Other duties (1) — Crown / regulator
  • Settlement Body must pay credit notes to capacity providers Statutory regulator
s.non-completion fee

Non-completion fee

  • Pay non‑completion fee if new interconnector is not finished on time Trader
  • Pay non-completion fees for new build interconnector projects Any Person
s.reducing capacity payments: offsetting relevant ex

Reducing capacity payments: offsetting relevant expenditure

  • Pay invoice for outstanding relevant expenditure/benefit Trader
  • Repay or offset grants and subsidies against capacity payments Any Person
s.repayment of capacity payments: metering fault

Repayment of capacity payments: metering fault

  • Repay capacity payments if a metering or DSR test certificate is found invalid Any Person
  • Repay capacity payments if metering test is invalid Trader
s.repayment of capacity payments: termination

Repayment of capacity payments: termination

  • Repay capacity payments if your agreement is terminated Any Person
Browse 7 other sections in this Part — procedural / definitional / commencement
s.termination fees: adjustment for dsr providers

Termination fees: adjustment for DSR providers

Part 7 — Credit cover

s.054

Credit cover: requirements

  • Provide and maintain valid credit cover Any Person
  • Provide required credit cover in an approved form Any Person
s.055

Approval of credit cover

  • Approve or reject credit cover and notify the creditor Any Person
Other duties (1) — Crown / regulator
  • Settlement Body must notify you of credit cover approval decisions Statutory regulator
s.056

Maintenance of credit cover

  • Maintain and update credit cover for the Capacity Market Any Person
  • Maintain required credit cover for CFD contracts Trader
s.057

Downgrade of letter of credit

  • Notify downgrade and replace credit cover within 10 working days Trader
  • Replace credit cover if your bank is downgraded Any Person
s.061

Draw down of applicant credit cover

  • Withdraw applicant credit cover when required Any Person
Other duties (1) — Crown / regulator
  • Settlement Body must draw down credit cover for non-compliance Statutory regulator
Browse 4 other sections in this Part — procedural / definitional / commencement

Part 8 — Information

s.064

Limitation on duty to provide information

  • Keep privileged legal communications confidential Any Person
Other duties (1) — Crown / regulator
  • Ofgem cannot compel you to provide legally privileged information Statutory regulator
s.065

Protection of information

  • Protect and restrict the use of Capacity Market information Trader
  • Protect confidential capacity market information Any Person
Browse 2 other sections in this Part — procedural / definitional / commencement

Part 9 — Enforcement

s.067

Relevant requirements

Unlimited fine
  • Comply with information duties and other requirements under the CFD regulations Any Person
Other duties (1) — Crown / regulator
  • Ofgem must enforce Capacity Market and information requirements Statutory regulator

Part 10 — Dispute resolution and appeals

s.073

Consequences of successful review or appeal

  • Respond to a capacity agreement offer within 5 working days Any Person
Other duties (1) — Crown / regulator
  • Delivery Body must update register and notify you after a successful appeal Statutory regulator
s.075

Disputes notice

  • Send a disputes notice within 28 days of receiving a calculation Any Person
  • Submit a disputes notice if you disagree with a calculation or decision Any Person
Browse 6 other sections in this Part — procedural / definitional / commencement

Part 11 — Capacity market rules

s.078

Objectives

Other duties (1) — Crown / regulator
  • Ofgem must apply core objectives when making Capacity Market rules Statutory regulator
s.079

Procedure

Other duties (1) — Crown / regulator
  • Ofgem must consult stakeholders before making or amending Capacity Market rules Statutory regulator
Browse 1 other section in this Part — procedural / definitional / commencement

Part 12 — Other functions of the administrative parties

s.081

Review by Secretary of State

Other duties (1) — Crown / regulator
  • Secretary of State must review Electricity Capacity Regulations every five years Crown / Minister / Government department
s.082

Review of capacity market rules

Other duties (1) — Crown / regulator
  • Ofgem and Secretary of State must review and report on capacity market rules Statutory regulator
s.083

Annual operational reports

Other duties (1) — Crown / regulator
  • Ofgem must publish annual reports on the Capacity Market Statutory regulator
Browse 2 other sections in this Part — procedural / definitional / commencement

Part 13 — Miscellaneous

Browse 2 other sections in this Part — procedural / definitional / commencement

Part 14 — Transitory provisions and repeal

Browse 5 other sections in this Part — procedural / definitional / commencement
s.transitory provisions: the second t-4 auction

Transitory provisions: the second T-4 auction

s.transitory provisions: the t-3 auction

Transitory provisions: the T-3 auction

s.transitory provisions: the third t-4 auction and s

Transitory provisions: the third T-4 auction and supplementary auction

Schedules

Browse 1 other Schedule — structural / supplementary
Read the full Act on legislation.gov.uk (opens in a new tab)

Enforcement and responsible bodies

The regulators that administer or enforce this legislation.

Ofgem

Office of Gas and Electricity Markets

Regulates gas and electricity markets in Great Britain. Issues licences for generation, transmission, distribution, and supply. Protects consumers and promotes competition. Also …

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