This page provides full details of the proposed change, relevant dates and decisions.
What is the issue?
| A Capacity Provider’s Prospective CMU with a T-4 Agreement is required by Rule 6.6.1 to meet its Financial Commitment Milestone (FCM) by 16 months after its Auction Results Day (ARD), which includes (under Rule 6.6.2(a)) that Capital Expenditure (Capex) has been incurred and paid at least equal to 10% of the Total Project Spend (TPS).
For some CMUs this necessitates paying suppliers earlier than would otherwise be necessary, having negative commercial consequences for the project. |
What is the proposed solution?
| At CMAG21 a Surgery Item was discussed to consider the options for addressing this issue and it was agreed that the preferred solution was Option B, to only allow extension of the deadline for Capex to be incurred and paid up to 30 months after the ARD.
That means the other requirements for a Funding Declaration and Directors’ certificate (that the Final Investment Decision has been taken as well as Financial Close for any non-Group resources) remain subject to the existing 16 month deadline. Also, because the increase in Credit Cover if FCM is not met by 11 months after ARD is set out in Regulations as well as Rule 6.6A, this is outside the scope of CMAG and is not changed (as also with CP371 below). |
StatusTitle Decoration
With Ofgem phase
This is the stage after consultation and after the CMAG has sent a recommendation to Ofgem but before Ofgem has determined whether to approve/reject/send back a CM Rules change.
Next StepsTitle Decoration
| Milestone | Date |
|---|---|
| Proposal Form Submission | |
| CMAG Initial Consideration | Meeting 21 (18 June 2024) |
| CMAG Development | Meeting 23 (20 August 2024) |
| CMAG Recommendation to Ofgem | Meeting 24 (17 September 2024) |
| Ofgem Statutory Consultation | TBC |
| Implementation | TBC |
Impacts and Related ChangesTitle Decoration
Related Changes
CP371 Protection from Very Late Network Connections
Contact informationTitle Decoration
Lead Analyst:
Paul Farmer, Senior Change Lead
[email protected], 0207 380 4283