Commentary on Sections Part 2: Electricity Market Reform Chapter 2: Contracts for difference Section 18: Application of sums held by CFD counterparty
120.This section enables the regulations to make provision about the allocation of sums between generators by the CFD counterparty in circumstances where the supplier obligation is not large enough to meet all of its obligations in full. In making these regulations, the Secretary of State must have regard to the principle that sums should be apportioned in proportion to the amounts which are owed, i.e. that they are pro-rated between generators (subsection (3)).
121.Subsections (4) and (5) enable the regulations to make provision about the use of sums a CFD counterparty holds and for the circumstances where monies received should or should not go to the Consolidated Fund.