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The Contracts for Difference (Allocation) Regulations 2014

Type Statutory-Instrument

Publication 2014-07-31

Last updated 2025-07-22

State In force

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Made: 31st July 2014

Coming into force in accordance with regulation 1

Accordingly, the Secretary of State, in exercise of the powers conferred by sections 6(1), 10, 12(1) to (3), 13(2),(3) and (8) and 19 of the Energy Act 2013, makes the following Regulations:

PART 1 — Introduction

Citation, commencement and extent

1

(1) These Regulations may be cited as the Contracts for Difference (Allocation) Regulations 2014 and come into force on the day after the day on which they are made.

(2) Except for Part 10, these Regulations do not extend to Northern Ireland.

Interpretation

2

(1) In these Regulations—

“accreditation” means accreditation under any of the renewables obligation orders;

“the Act” means the Energy Act 2013;

“additional qualification requirements” means the requirements set out in Chapter 4 of Part 4 applicable to particular applications;

“administrative strike price” means the strike price—used by the delivery body to value an application under regulation 29[^f00002]; andwhich is the maximum strike price which applies to a successful application;

“allocation round notice” has the meaning given by regulation 4;

“appeals deadline date” has the meaning given by regulation 43(2)(c) ...;

“applicable planning consents” has the meaning given by regulation 24(1);

“applicant” has the meaning given by regulation 16(2);

“application” means (except in paragraph 4(b) of Schedule 1) a request by an applicant to the delivery body to take part in a contract allocation process in respect of a CFD unit;

“application closing date” in relation to an allocation round has the meaning given by regulation 4A(2)(b)(iii);

“application opening date” has the meaning given by regulation 4A(2)(b)(ii);

“application window” means the period beginning with the application opening date and ending with the application closing date;

“application window notice” has the meaning given by regulation 4A(1);

“application window variation notice” has the meaning given by regulation 5A(1);

“applications valuations” has the meaning given by regulation 29(1) and (2);

“associated” has the same meaning as it has in paragraph 37 of Schedule 2A to the Electricity Act 1989;

“audit report” has the meaning given by regulation 36(2)(b);

“CFD unit” means the whole or part of an eligible generating station;

“connection agreement” has the meaning given by regulation 25(6);

“contract allocation framework” means the part of an allocation framework[^f00003] which deals with matters other than sustainable industry rewards;

“contract allocation process” means the process included in a contract allocation framework by which the delivery body determines which qualifying applications are successful applications and the strike price applicable to successful applications;

“contract budget” means an amount set out in a contract budget notice, which is the total—sum of money potentially payable by the CFD counterparty[^f00004] under CFDs[^f00005] to eligible generators[^f00006] in a delivery year, excluding sustainable industry rewards;capacity of electricity which may be generated by generating stations subject to a CFD in a delivery year; ora combination of (a) and (b);

“contract budget notice” means a notice required by regulation 11;

“contract budget revision notice” means a notice referred to in regulation 12(2)(b);

“contract framework notice” has the meaning given by regulation 7(1);

“contract framework revision notice” has the meaning given by regulation 8(4);

“delivery body” means—the national system operator; orif the national system operator’s functions under Chapter 2 of Part 2 of the Act have been transferred to an alternative delivery body, that body;

“delivery year” means any of—the period from the date on which these Regulations come into force and ending on 31st March 2015; andthe 12 month periods commencing on 1st April 2015 and each anniversary of that date and ending with the 12 month period ending on 31st March 2035;

“distribution system” means a system, other than a private network, of the type described in section 4(4) of the Electricity Act 1989[^f00003];

“estimated budget” means the total—estimated sum of money potentially payable by the CFD counterparty under CFDs to eligible generators in a delivery year, excluding sustainable industry rewards;estimated capacity of electricity which may be generated by generating stations subject to a CFD in a delivery year; ora combination of (a) and (b);

“estimated budget notice” means a notice required by regulation 10B(2);

“excluded application” has the meaning given by regulation 14(1);

“excluded site” has the meaning given by regulation 14A(6);

“exemption certificate” has the meaning given by regulation 14C(9);

“exemptions request notice” has the meaning given by regulation 14C(2);

“final strike price” means the strike price which applies to a successful application after the contract allocation process applicable to that application has been completed;

“general qualification requirements” means the requirements set out in Chapter 3 of Part 4;

“halt direction” has the meaning given by regulation 38(1)(a)(ii);

“maxima” has the meaning given by regulation 11(2)(b);

“minima” has the meaning given by regulation 11(2)(a);

“a non-delivery case” has the meaning given by regulation 14A(1)(b);

“non-fossil fuel orders” means—the Electricity (Non-Fossil Fuel Sources)(England and Wales) Order 1994[^f00004];the Electricity (Non-Fossil Fuel Sources)(Scotland) Order 1994[^f00005];the Electricity (Non-Fossil Fuel Sources)(England and Wales) Order 1997[^f00006];the Electricity (Non-Fossil Fuel Sources)(Scotland) Order 1997[^f00007];the Electricity (Non-Fossil Fuel Sources)(England and Wales) Order 1998[^f00008];the Electricity (Non-Fossil Fuel Sources)(Scotland) Order 1999[^f00009];

“non-qualification determination” has the meaning given by regulation 19(2)(b);

“non-qualification review” has the meaning given by regulation 20(1);

“non-qualification review request date” has the meaning given by regulation 20(2)(a);

“a non-signature case” has the meaning given by regulation 14A(1)(a);

“offer lapsed” in relation to the offer of a CFD is to be construed in accordance with regulation 11(1) of the Standard Terms Regulations 2014;

“offer of a CFD” has the meaning given in regulation 10(1) of the Standard Terms Regulations 2014;

“offshore waters” means waters—in or adjacent to England, Wales or Scotland which are between the mean low water mark and the seaward limits of the territorial sea; orwithin the area of the sea designated under section 41(3) of the Marine and Coastal Access Act 2009[^f00010];

“offshore wind CFD unit” means a CFD unit which generates electricity by the use of wind and which is situated (or is to be situated) wholly in offshore waters;

“pending applicant” and “pending application” have the meanings given to those terms by regulation 49(2);

“pending bid” has the meaning given by regulation 50(2)(b);

“phased offshore wind CFD unit” means an offshore wind CFD unit—which is to be established or altered by two or three phases of construction;where each phase of construction is to provide new generating capacity; andin the case of a CFD unit which is to be established, where each phase of construction is to provide a generating capacity of more than 5 megawatts;

“post-appeals indicative start date” has the meaning given by regulation 31(2);

“pot” has the meaning given by regulation 11(2)(c);

“pot notice” means a notice referred to in regulation 10A(3);

“price notice” means a notice required by regulation 10A(1);

“private network” means a network for the distribution of electricity which is not operated by a person authorised to distribute electricity under a licence granted or treated as granted under section 6(1)(c) of the Electricity Act 1989;

“proceed direction” has the meaning given by regulation 38(1)(b)(i);

“proceed notice” has the meaning given by regulation 37(1)(b)(i);

“qualification appeal” has the meaning given by regulation 43(1);

“qualifying applicant” has the meaning given by regulation 17(2) and includes a person determined by the appeals body as a qualifying applicant;

“qualifying application” has the meaning given by regulation 17(2);

“registration” means, other than in Schedule 1, registration on the central FIT register as an accredited FIT installation within the meaning of Part 3 of the Feed-in Tariffs Order 2012[^f00011];

“relevant CFD unit” means the CFD unit which is the subject of an application;

“relevant works” has the meaning given by regulation 23(2) and (4);

“remote island wind CFD unit” means a CFD unit which satisfies the remote island wind conditions in regulation 27A(3);

“renewables obligation orders” means—the Renewables Obligation Order 2009[^f00012]; orthe Renewables Obligation (Scotland) Order 2009[^f00013];

“re-run notice” has the meaning given by regulation 37(1)(b)(ii);

“review notice” has the meaning given by regulation 20(1);

“round variation notice” has the meaning given by regulation 5(1)(a);

“the Standard Terms Regulations 2014” means the Contracts for Difference (Standard Terms) Regulations 2014;

“strike price” means (except in Part 10) a price for one megawatt hour of electricity generated by a CFD unit;

“successful application” means an application in respect of which, further to a contract allocation process, a CFD notification may be made or, in the case of an application in respect of a phased offshore wind CFD unit, more than one CFD notification may be made;

“sustainable industry reward” means a sum of money which—may be payable by the CFD counterparty to an eligible generator under a CFD allocated in the seventh, eighth or ninth allocation round;is determined in accordance with a sustainable industry reward allocation framework; andis payable for the purpose of supporting the matters referred to in regulation 6(2B) (development and sustainability of supply chains);

“sustainable industry reward allocation framework” means the part of an allocation framework which deals with sustainable industry rewards;

“sustainable industry reward allocation process” means the process included in a sustainable industry reward allocation framework for the determining of sustainable industry reward applications;

“sustainable industry reward applicant” means an eligible generator which makes a sustainable industry reward application;

“sustainable industry reward application” means an application made under regulation 28A(1);

“sustainable industry reward budget” means an amount set out in a sustainable industry reward budget notice, which is the sum of money potentially payable by the CFD counterparty under CFDs to eligible generators who are eligible for such payments in accordance with a sustainable industry reward statement, expressed as a sum of money payable per gigawatt of electricity generated by such generators;

“sustainable industry reward budget notice” means a notice required by regulation 13A(1);

“sustainable industry reward framework notice” has the meaning given by regulation 7(3);

“sustainable industry reward framework revision notice” has the meaning given by regulation 8(5);

“sustainable industry reward statement” means a statement given by the Secretary of State under regulation 28C, as revised, where applicable, in accordance with regulation 28E;

“target commissioning date” means the intended date, being a date within the target commissioning window, for the generation of electricity to begin by a CFD unit once it is established or altered;

“target commissioning window” means the period in which the generation of electricity must take place by a CFD unit once it is established or altered, the duration of which is listed in the contract allocation framework for each type of eligible generating station;

“target commissioning window start date” means the date on which the target commissioning window begins;

“target dates” means the target commissioning date and the target commissioning window start date;

“temporary site exclusion” has the meaning given by regulation 14A(2) and (3);

“termination notice” has the meaning given by regulation 5(1)(b);

“transmission system” has the meaning given by section 4(4) of the Electricity Act 1989;

“variation notice” has the meaning given by regulation 34(2);

“working day” means a day that is not a Saturday or Sunday, Christmas Day, Good Friday or any day that is a bank holiday in England and Wales under the Banking and Financial Dealings Act 1971.

(2) The following have the same meanings as they have in the Contracts for Difference (Definition of Eligible Generator) Regulations 2014[^f00015]—

“complete CCS system”;

“eligible generating station”;

“eligible generator”;

“generating station”;

“hydro generating station”;

“landfill gas”;

“photovoltaic array”;

“relevant fossil fuel generating station”;

“sewage gas”.

PART 2 — Allocation rounds and allocation frameworks

Notices

3

A notice given by the Secretary of State under this Part must be made publicly available by the Secretary of State as soon as practicable after it is given.

Establishing allocation rounds

4

(1) The Secretary of State may by notice establish an allocation round (“an allocation round notice”).

(2) An allocation round notice must be given to the delivery body and the CFD counterparty.

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) An allocation round may be for some or all of the period of another allocation round.

(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Varying and terminating allocation rounds

5

(1) The Secretary of State may—

(a) by notice (“a round variation notice”) vary the commencement date of an allocation round, where the commencement date of that allocation round has not yet passed; or

(b) by notice (“a termination notice”) terminate an allocation round so that no CFDs are to be allocated further to that round.

(2) A round variation notice or a termination notice must—

(a) be given to the delivery body and the CFD counterparty;

(b) ... state the date on which it has effect; and

(3) A round variation notice must give reasons for the variation effected by the notice.

(4) Where an allocation round is terminated after a contract allocation process in that round is completed, the termination notice must give reasons for the termination.

(5) A ... termination notice is not valid unless the date on which it has effect is—

(a) not earlier than the date of the notice; and

(b) before the delivery body makes the first CFD notification further to the allocation round to which the notice applies.

(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6A) No variation of the commencement date of an allocation round ... may be made where the varied date would be earlier than 5 working days after the date of the round variation notice.

(7) Where the delivery body receives a round variation notice or a termination notice, it must as soon as practicable after receipt send a copy of the notice to each applicant who has made an application (which has not been withdrawn) in the round to which the notice applies.

Allocation frameworks

6

(1) The Secretary of State—

(a) must ensure that one contract allocation framework applies to each allocation round;

(b) may apply a contract allocation framework to more than one allocation round;

(c) may, in relation to the seventh, eighth and ninth allocation rounds, apply a sustainable industry reward allocation framework to the allocation round in addition to the contract allocation framework; and

(d) may, if the Secretary of State applies a sustainable industry reward allocation framework to the seventh, eighth or ninth allocation round, apply that framework to more than one of those allocation rounds.

(2) A contract allocation framework must, in respect of the allocation round or rounds to which it applies, set out—

(a) the contract allocation process which applies to each type of application which may be made; and

(b) each method of calculation which the delivery body must apply to determine—

(i) the applications valuations; and

(ii) the value of an application whilst carrying out the contract allocation process.

(2A) A sustainable industry reward allocation framework must, in respect of the allocation round or rounds to which it applies, set out—

(a) the sustainable industry reward allocation process;

(b) how the Secretary of State is to determine the contribution which the establishment or alteration of an offshore wind CFD unit is likely to make to the development and sustainability of supply chains, which must include an assessment of the matters referred to in paragraph (2B);

(c) a process for review before a final determination is made of the likely contribution referred to in sub-paragraph (b);

(d) the minimum standards of the likely contribution referred to in sub-paragraph (b) which must be met before the Secretary of State may give a sustainable industry reward statement;

(e) the method which the Secretary of State must apply to determine whether a sustainable industry reward may be payable and the amount of that potential reward; and

(f) the method by which the Secretary of State must score and rank sustainable industry reward applications.

(2B) The matters referred to in this paragraph are—

(a) increasing productivity, competitiveness and capacity in supply chains;

(b) encouraging innovation in supply chains;

(d) increasing investment in and finding technical solutions to improving infrastructure that is relevant to the generation, storage, demand or use of electricity;

(e) increasing the sustainability of supply chains, in particular—

(i) increasing the long-term economic sustainability of supply chains;

(ii) minimising the negative environmental impacts of supply chains; and

(iii) delivering benefits to the communities in which supply chains operate; and

(f) increasing the investment in deprived areas which results from supply chains.

(3) To the extent that the contract allocation process imposes requirements on the delivery body, the Secretary of State must be satisfied that it is reasonable to expect the delivery body to comply with those requirements.

(4) Where the provisions of an allocation framework conflict with the provisions of these Regulations, the latter prevail.

(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Framework notices

7

(1) The Secretary of State must by notice (“a contract framework notice”) identify the contract allocation framework which applies to an allocation round.

(2) A contract framework notice must—

(a) be given to the delivery body and the CFD counterparty; and

(b) be given no later than 10 working days before the application opening date, including where the notice is required by regulation 8(3)(b).

(3) Where the Secretary of State applies a sustainable reward allocation framework to an allocation round, the Secretary of State must by notice (a “sustainable industry reward framework notice”) identify the sustainable industry reward allocation framework which applies to that allocation round.

(4) A sustainable industry reward framework notice must—

(a) be given to the delivery body and the CFD counterparty;

(b) specify the date on which the sustainable industry reward allocation process will commence, which must not be earlier than three months after the date of the notice; and

(c) must be given as soon as practicable after the date of the allocation round notice establishing the allocation round to which the sustainable industry reward framework notice applies.

Framework revisions

8

(1) Subject to paragraph (2), the Secretary of State may—

(a) amend or add to the provisions of a contract allocation framework identified in a contract framework notice; or

(b) subject to paragraph (3), remove the application of a contract allocation framework to an allocation round.

(2) No amendment, addition or removal under paragraph (1) may be made later than 10 working days before the application opening date.

(2A) Subject to paragraph (2B), the Secretary of State may amend or add to the provisions of a sustainable industry reward allocation framework identified in a sustainable industry reward allocation framework notice.

(2B) No amendment or addition under paragraph (2A) may be made later than 30 working days before the date on which the sustainable industry reward allocation process will commence, as specified in the sustainable industry reward framework notice or in a sustainable industry reward framework revision notice.

(2C) Subject to paragraph (5)(d), the Secretary of State may vary the date on which the sustainable industry reward allocation process will commence, as specified in the sustainable industry reward framework notice, or in a sustainable industry reward framework revision notice.

(3) Where the application of a contract allocation framework to an allocation round is to be removed, the Secretary of State must—

(a) unless the allocation round is terminated, ensure that another contract allocation framework applies to the allocation round; and

(b) comply with regulation 7 in respect of that other contract allocation framework.

(4) Where the Secretary of State amends or adds to the provisions of a contract allocation framework, or removes a contract allocation framework, the Secretary of State must give a notice (“a contract framework revision notice”) to the delivery body and the CFD counterparty which states—

(a) the date on which the amendment, addition or removal has effect, which must not be earlier than the date of the notice;

(b) how a contract allocation framework has been amended or added to; and

(c) where the contract allocation framework is to apply to more than one allocation round, the allocation round or rounds affected by the amendment, addition or removal.

(5) Where the Secretary of State amends or adds to the provisions of a sustainable industry reward allocation framework, or varies the date specified in the sustainable industry reward framework notice as the date on which the sustainable industry reward allocation process will commence, the Secretary of State must give a notice (“a sustainable industry reward framework revision notice”) to the delivery body and the CFD counterparty which states, where applicable—

(a) the date on which an amendment or addition to the sustainable industry reward allocation framework has effect, which must not be earlier than the date of the notice;

(b) how the sustainable industry reward allocation framework has been amended or added to;

(c) where the sustainable industry reward allocation framework is to apply to more than one allocation round, the allocation round or rounds affected by the amendment or addition; and

(d) the varied date on which the sustainable industry reward allocation process will commence, which must not be earlier than—

(i) the date which is 10 working days after the date of the notice; or

(ii) the date which is three months after the date of the sustainable industry reward framework notice.

Publication of allocation frameworks

9

(1) The Secretary of State must make publicly available each contract allocation framework and sustainable industry reward allocation framework, including any version which includes an amendment or addition.

(2) The Secretary of State must comply with paragraph (1) in relation to a contract allocation framework—

(a) except where an addition or amendment is made to the provisions of a contract allocation framework, by no later than the date of the contract framework notice in which the framework is identified; or

(b) where an addition or amendment is made to the provisions of a contract allocation framework, by no later than the date of the contract framework revision notice in which the framework is identified.

(3) The Secretary of State must comply with paragraph (1) in relation to a sustainable industry reward allocation framework—

(a) except where an addition or amendment is made to the provisions of a sustainable industry reward allocation framework, by no later than the date of the sustainable industry reward framework notice in which the framework is identified; or

(b) where an addition or amendment is made to the provisions of a sustainable industry reward allocation framework, by no later than the date of the sustainable industry reward framework revision notice in which the framework is identified.

PART 3 — Budgets applicable to allocation rounds

Application

10

(1) This Part applies to an allocation round which has been established further to an allocation round notice.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Budget notices

11

(1) The Secretary of State must by notice (“a contract budget notice”) specify—

(a) the contract budget which is available for each delivery year applicable to an allocation round; ...

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) The Secretary of State may in a contract budget notice specify any of the following—

(a) budgets which are reserved for the descriptions of applications specified in the notice (“minima”);

(b) maximum budgets which apply to the descriptions of applications specified in the notice (“maxima”);

(c) a division of the contract budget such that a different part (“pot”) of the contract budget applies to the description of applications specified in the pot notice.

(3) Where maxima or minima are specified, they may be expressed as—

(a) a sum of money;

(b) an amount of capacity of electricity generation; or

(4) Where—

(a) the contract budget is expressed as a sum of money; and

(b) that sum is stated by reference to a price which is not current at the date of the contract budget notice,

the contract budget notice must include a factor which, when applied to that sum, converts that sum into a price which is current at that date.

(4A) Where any budget referred to in paragraph (1)(a) or (2) (that is to say, the contract budget, a minimum, a maximum or a pot) is expressed as an amount of capacity of electricity generation, the Secretary of State may specify in the contract budget notice that a soft constraint applies to that amount; and in such a case, the amount of capacity of electricity generation may be exceeded, but only in accordance with the provisions of the contract allocation framework that applies to that allocation round.

(5) A contract budget notice must—

(a) be given to the delivery body at such time as is set out in the contract allocation framework; and

(b) identify the allocation round to which the contract budget notice applies; ...

Budget revision

12

(1) This regulation applies where the Secretary of State has given a contract budget notice in respect of an allocation round.

(2) The Secretary of State—

(a) may revise a contract budget notice (“a contract budget revision”)—

(i) in the period after the contract budget notice has been given but before the first CFD notification, further to the allocation round to which the contract budget notice applies, has been given; and

(ii) in accordance with paragraph (5); but

(b) must only effect a contract budget revision by a notice (“a contract budget revision notice”) which complies with regulation 13.

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) ... The Secretary of State may increase the contract budget but must not—

(a) decrease—

(i) the contract budget;

(ii) any maxima; or

(iii) any minima; or

(b) increase any maxima or minima, unless the contract budget is increased by at least the same amount; or.

Budget revision notices

13

A contract budget revision notice must—

(a) be given to the delivery body;

(b) identify the allocation round to which the contract budget revision notice applies;

(d) be given at least one working day before the date on which the revision set out in the notice is to have effect.

PART 4 — Applications for CFDs

CHAPTER 1 — Excluded applications

Excluded applications

14

(1) Subject to regulation 14ZA (decommissioning), an eligible generator may not make an application under this Part where the application is excluded under any of the following paragraphs (“an excluded application”).

(2) No application may be made in respect of a CFD unit where the unit is—

(a) a generating station connected to a complete CCS system or is to be altered to be a generating station connected to a complete CCS system; or

(b) a nuclear power station.

(3) No application may be made in respect of a CFD unit where the CFD unit is—

(a) to be established as a hydro generating station; and

(b) to have a generating capacity of 5 megawatts or less.

(4) No application may be made in respect of a CFD unit where—

(a) the CFD unit uses or is to use as its source of energy—

(i) gas formed by the anaerobic digestion of material which is not landfill gas or sewage gas;

(ii) solar radiation when captured by a photovoltaic array; or

(iii) wind, other than in respect of an offshore wind CFD unit; and

(b) in the case of a CFD unit described in sub-paragraph (a) which is to be established, it is to have a generating capacity of 5 megawatts or less.

(5) No application may be made in respect of a CFD unit to be established or altered where an accreditation or registration applies (or has applied) in respect of that unit.

(6) Subject to paragraph (7), no application may be made in respect of a CFD unit where the CFD unit—

(a) is or is to be an offshore wind CFD unit; and

(b) is to be established or altered in phases of construction.

(7) Paragraph (6) does not apply to a phased offshore wind CFD unit.

(8) No application may be made in respect of a CFD unit where the CFD unit is or is to be situated wholly or partially—

(a) in Northern Ireland; or

(b) in waters in or adjacent to Northern Ireland which are between the mean low water mark and the seaward limits of the territorial sea.

(9) No application may be made in respect of a CFD unit to be altered where funding has been given in respect of that unit under any of the non-fossil fuel orders.

(10) No application may be made in respect of a CFD unit in relation to which—

(a) a CFD applies;

(b) a capacity agreement applies; or

(10A) For the purposes of paragraph (10)(c)—

(a) an application for a capacity agreement has been made when an application is made for prequalification in accordance with the Electricity Capacity Regulations 2014 and capacity market rules made under Chapter 3 of Part 2 of the Energy Act 2013 (“CM rules”); and

(b) an application for a capacity agreement has been determined when, in accordance with the Electricity Capacity Regulations 2014 and CM rules, it is no longer possible to obtain a capacity agreement as a consequence of that application.

(11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(12) No application may be made in respect of a CFD unit unless—

(a) where the CFD unit is or is to be part only of a generating station, the electricity to be generated by the CFD unit is metered separately from the electricity generated by the other part of the generating station or any other generating station;

(b) where sub-paragraph (a) does not apply, the electricity to be generated by the CFD unit is metered separately from the electricity generated by any other generating station.

(13) No application may be made in respect of a CFD unit to which an investment contract applies.

(14) The contract allocation framework may, in respect of an allocation round to which it applies, set out further descriptions of applications which may not be made in that round.

CHAPTER 2 — Applications and determinations

Commencement of allocation rounds

15

Chapters 2 to 4 apply where an application window has commenced further to an application window notice or an application window variation notice.

Applications

16

(1) A person may make an application where that person is an eligible generator in respect of the CFD unit described in the application.

(2) A person who makes an application permitted by paragraph (1) is “an applicant”.

(3) Up to and including the application closing date, an application may be withdrawn by the applicant at any time.

(4) The contract allocation framework may provide for circumstances where, after the application closing date, an application may be withdrawn or be treated as withdrawn.

(5) Subject to any provision described in paragraph (4), an application may not be withdrawn after the application closing date.

Determinations: qualifying applicants

17

(1) The delivery body must determine whether or not an application qualifies to take part in the contract allocation process applicable to the application.

(2) Where an application does so qualify, that application is “a qualifying application” and the applicant in respect of that application is “a qualifying applicant”.

(3) An application is not a qualifying application unless the application—

(a) is one to which a contract allocation process applies in the allocation round;

(b) is not an excluded application;

(d) where applicable, meets the additional qualification requirements set out or referred to in Chapter 4.

(4) An applicant must provide with the application—

(a) the information necessary to enable the delivery body—

(i) to make the determination under paragraph (1); and

(ii) to give a CFD notification were the application to be a successful application,

including the information listed or referred to in Schedule 1;

(b) where more than one set of standard terms[^f00016] applies in an allocation round, a statement by the applicant which identifies the set which would apply in respect of the application were a CFD to be allocated; and

(c) where the applicant has reached a modification agreement[^f00017], a statement by the applicant which identifies the agreement.

Information to be provided by the Authority

18

(1) In order to determine an application, the delivery body may require the Authority to inform it whether or not an accreditation or an application for accreditation applies to a relevant CFD unit.

(2) Where the Authority receives a request under paragraph (1), it must reply as soon as practicable in respect of information held by the Authority at the date on which the request is received[^f00018].

Notices of determinations

19

(1) Subject to paragraph (4), the delivery body must give a notice to each applicant which states whether or not an application made by the applicant is a qualifying application.

(2) A notice under paragraph (1) must—

(a) subject to paragraph (3), be given no later than 10 working days after the application closing date; and

(b) where the delivery body determines that the application is not a qualifying application (“a non-qualification determination”), give reasons for that determination.

(3) The contract allocation framework which applies to the allocation round may provide for a different period than that stated in paragraph (2)(a) and, where such a period is provided, the obligation in paragraph (2)(b) applies in respect of that period.

(4) A notice is not required under paragraph (1) where, before the notice would otherwise be given,—

(a) a termination notice has effect in respect of the allocation round; or

(b) the application is withdrawn.

Reviews of non-qualification determinations

20

(1) An applicant may give a notice (“a review notice”) to the delivery body to request a review of a non-qualification determination (“a non-qualification review”).

(1A) An applicant may not request a non-qualification review of a determination that an application is not a qualifying application by virtue of the applicant not being able to provide a sustainable industry reward statement, as required by regulation 27B(2).

(2) A review notice must—

(a) subject to paragraph (6), be given by a date (“the non-qualification review request date”) which is no later than 5 working days after the date of the notice containing the non-qualification determination;

(b) contain the matters specified in paragraph (3) and be made in the form and manner as may be required by the delivery body; and

(c) not contain any documentary evidence which was not provided to the delivery body in support of the application which is the subject of the non-qualification determination.

(3) The matters referred to in paragraph (2)(b) are—

(a) a concise statement which—

(i) identifies the relevant part of the non-qualification determination in dispute; and

(ii) sets out the facts on which the applicant relies;

(b) a summary of the grounds for disputing the non-qualification determination;

(d) a schedule listing the documents submitted with the review notice.

(4) Where the delivery body receives a review notice in accordance with paragraph (2), it must give a notice (“a non-qualification review notice”) to the applicant which—

(a) states whether or not the delivery body has determined to uphold the non-qualification determination; and

(b) gives reasons for the determination.

(5) Subject to paragraph (6), a non-qualification review notice must be given by no later than 10 working days after the date on which the review notice is received.

(6) The contract allocation framework which applies to the allocation round may provide for a different period than that stated in paragraph (2)(a) or (5), and where such a different period is provided for, the obligation in paragraph (2)(a) or (5) applies in respect of that different period.

Additional applications

21

(1) Except where paragraph (3) applies, no more than one application in respect of the same CFD unit may be made in the same allocation round, unless the prior application is withdrawn.

(2) Paragraph (3) applies where in respect of an application (“A”)—

(a) a non-qualification determination has been given;

(b) a review has upheld the non-qualification determination; and

(c) the applicant has made an appeal or the period within which an appeal may be brought against the determination has not expired.

(3) Where this paragraph applies, a further application may be made in the same allocation round in respect of the relevant CFD unit to which A applies only where—

(a) the Authority upholds the non-qualification determination or no appeal is made; and

(b) the further application is made no later than the application closing date.

Requirements of applications

22

(1) An applicant who makes an application must do so—

(a) in the form and manner required by the delivery body; and

(b) no later than the application closing date.

(2) Where an application has been made in accordance with paragraph (1), the delivery body must give a notice to the applicant which states the date of receipt of the application.

CHAPTER 3 — General qualification requirements

Requirement for applicable planning consents

23

(1) Paragraphs (2) to (5) are subject to paragraph (7).

(2) Subject to paragraph (3), the applicant must provide copies of the applicable planning consents which apply to any works (“relevant works”) which enable—

(a) the relevant CFD unit to be established or altered;

(b) electricity generated from the relevant CFD unit to be supplied, as applicable, to—

(i) the national transmission system for Great Britain;

(ii) the distribution system; or

(iii) a private network.

(3) Paragraph (2) does not require the provision of any of the applicable planning consents in respect of any relevant works to which a connection agreement applies, where those works are undertaken by a person other than the applicant.

(4) “Relevant works” includes any of the following works—

(a) the alteration, construction or removal of any plant, building or other structure;

(b) the alteration, installation or removal of any cable, line, pipeline or other service media;

(5) Paragraph (2) applies in respect of relevant works undertaken or to be undertaken by the applicant or any other person on the applicant’s behalf.

(6) Where the applicant considers that in respect of the relevant works—

(a) any of the applicable planning consents do not apply; or

(b) a general permission or consent or an exemption applies,

the applicant must provide details of those matters to the delivery body.

(7) The contract allocation framework which applies to an allocation round may, in respect of the allocation round to which the framework applies, amend, add to or remove the requirements in any of paragraphs (2) to (5) and the general qualification requirements are so modified where such an amendment, addition or removal is made.

Applicable planning consents

24

(1) “Applicable planning consents” are—

(a) a development order or, in respect of relevant works in waters in or adjacent to Wales up to the seaward limits of the territorial sea, a TWA order;

(b) a planning permission;

(d) where any relevant works involve a licensable marine activity, a marine licence.

(2) In this regulation—

“development order” means a development consent order under section 114 of the Planning Act 2008[^f00019];

“licensable marine activity” has the meaning given—except where paragraph (b) applies, in section 66 of the Marine and Coastal Access Act 2009[^f00020]; orin respect of relevant works in the Scottish marine area, in section 21 of the Marine (Scotland) Act 2010[^f00021];

“marine licence” has the meaning given—except where paragraph (b) applies, in Part 4 of the Marine and Coastal Access Act 2009; orin respect of relevant works in the Scottish marine area, in Part 4 of the Marine (Scotland) Act 2010;

“planning permission” means in respect of relevant works in—England or Wales, planning permission under Part 3 of the Town and Country Planning Act 1990[^f00022];Scotland, planning permission under Part 3 of the Town and Country Planning (Scotland) Act 1997[^f00023];

“Scottish marine area” has the meaning given by section 1 of the Marine (Scotland) Act 2010;

“section 36 consent” means a consent under section 36 of the Electricity Act 1989[^f00024];

“TWA order” means an order under section 3 of the Transport and Works Act 1992[^f00025].

Connection agreements

25

(1) Paragraphs (2) to (4) are subject to paragraph (5).

(2) Where a direct connection applies or is to apply to the relevant CFD unit, the applicant must provide a copy of the connection agreement applicable to the relevant CFD unit, and—

(a) where connection is to the national transmission system for Great Britain, that agreement must secure transmission entry capacity for the CFD unit of at least 75% of the provisional capacity estimate of the CFD unit; or

(b) where connection is to the distribution system, that agreement must provide for the export of at least 75% of the provisional capacity estimate of the CFD unit to the distribution system.

(3) Where a direct connection or a partial connection does not apply or is not to apply to the relevant CFD unit, the applicant must provide either—

(a) a statement that the applicant is or is to be the operator of the private network to which the relevant CFD unit exports or is to export electricity; or

(b) a copy of a private network use agreement applicable to the relevant CFD unit.

(4) Where a partial connection applies or is to apply to the relevant CFD unit, the applicant must provide—

(a) copies of—

(i) either—

(aa) a statement that the applicant is or is to be the operator of the private network to which the relevant CFD unit exports or is to export electricity; or

(bb) a copy of a private network use agreement applicable to the relevant CFD unit; and

(ii) the connection agreement applicable to the relevant CFD unit; or

(b) copies of—

(i) the private network use agreement applicable to the relevant CFD unit that allows the CFD unit to access a connection to the national transmission system for Great Britain or the distribution system; and

(ii) the connection agreement between the operator of the private network and the national system operator or the distribution system.

(5) The contract allocation framework which applies to an allocation round may amend, add to or remove the requirements in any of paragraphs (2) to (4) and the general qualification requirements are so modified where such an amendment, addition or removal is made.

(6) In this regulation—

“connection agreement” means an agreement (including a countersigned offer) to connect to—the national transmission system for Great Britain; orthe distribution system,entered into by the operator of the relevant system;

“direct connection” means a connection to—the national transmission system for Great Britain; orthe distribution system,which applies to all the electricity generated by the relevant CFD unit;

“partial connection” means a connection to—the national transmission system for Great Britain; orthe distribution system,which applies to part only of the electricity generated by the relevant CFD unit.

“private network use agreement” means an agreement to connect to a private network, entered into by the operator of that private network, which sets out the terms for exporting electricity to that private network and the capacity in the private network that is accessible under the agreement;

“provisional capacity estimate” means the capacity of the relevant CFD unit, as provided by an applicant in accordance with paragraph 3(a)(iii) of Schedule 1;

“transmission entry capacity” means the maximum amount of electricity permitted by the national system operator to be exported from the relevant CFD unit to the national transmission system for Great Britain at any given time.

CHAPTER 4 — Additional qualification requirements

Statements in relation to supply chains

26

(1) Paragraph (4) applies where the three following conditions apply.

(2) The first condition is that the relevant CFD unit—

(a) is to be established with a threshold generating capacity; or

(b) is to be altered and the unit—

(i) before and after the alteration will have a threshold generating capacity; or

(ii) in consequence of the alteration, will have a threshold generating capacity.

(3) The second condition is that, in respect only of the first allocation round, the Secretary of State has not made a determination under regulation 12(2) of the Electricity Market Reform (General) Regulations 2014[^f00026] that statements under regulation 11 of those Regulations will not be provided for that round.

(3A) The third condition is that the application is not one to which regulation 27B (statements in relation to sustainable industry rewards) applies.

(4) Where this paragraph applies, the applicant must provide a statement made by the Secretary of State under regulation 11 of the Electricity Market Reform (General) Regulations 2014 in relation to the relevant CFD unit.

(5) In this regulation, “threshold generating capacity” means a generating capacity of—

(a) 300 megawatts or more; or

(b) where the relevant CFD unit meets, or is expected by the target commissioning date to meet, the floating offshore wind conditions set out in regulation 27ZA(4), under 300 megawatts.

Offshore CFD units

27

(1) This regulation applies where the relevant CFD unit is or is to be an offshore generating station or part of such a station.

(2) The applicant must demonstrate that a lease or an agreement for lease has been granted by the Crown Estate Commissioners or a relevant person in respect of the location of the relevant CFD unit.

(3) In this regulation, “offshore generating station” means a generating station which is located wholly in offshore waters and “relevant person”, in relation to any property, rights or interests to which section 90B(5) of the Scotland Act 1998 applies, means the person who manages that property or those rights or interests.

Supplemental requirements

28

(1) A contract allocation framework may in respect of an allocation round provide for requirements (“supplemental requirements”) in relation to any or all types of eligible generating station which are in addition to the requirements in this Chapter.

(2) To the extent that any supplemental requirements apply to an application, the applicant in respect of that application must satisfy those requirements as additional qualification requirements for the allocation round.

(3) Supplemental requirements may include any of the following requirements in relation to a CFD unit—

(a) the amount of electricity to be generated;

(b) location;

(d) the metering of electricity to be generated;

(e) the type of fuel to be used to generate electricity.

PART 5 — Contract allocation processes

CHAPTER 1 — Valuation of applications

Valuation of applications

29

(1) The delivery body must determine in respect of an allocation round the valuations in paragraph (2)(“applications valuations”) for—

(a) each delivery year;

(b) the period comprising all delivery years; and

(2) The applications valuations are—

(a) the valuation of each application and all applications;

(b) the valuation of each qualifying application and all qualifying applications;

(i) each application which is subject to a non-qualification review or an appeal, where the review or appeal has not been determined; and

(ii) all such applications;

(d) where a pot applies for the allocation round, the valuation of—

(i) all applications to which the pot applies;

(ii) all qualifying applications to which the pot applies; and

(iii) all applications subject to a non-qualification review or an appeal, where the review or appeal has not been determined, to which the pot applies;

(e) where maxima or minima apply, the valuation of—

(i) all applications to which maxima or minima apply;

(ii) all qualifying applications to which maxima or minima apply; and

(iii) all applications subject to a non-qualification review or an appeal, where the review or appeal has not been determined, to which maxima or minima apply.

(3) The applications valuations—

(a) must be carried out in accordance with the appropriate method of calculation set out in the contract allocation framework; and

(b) must not include the valuation of an application which has been withdrawn at the date on which the valuation is carried out.

(4) The delivery body must make available to the Secretary of State the applications valuations.

(5) The contract allocation framework for the allocation round must set out the dates by which the applications valuations must be carried out.

(6) The contract allocation framework for the allocation round may—

(a) set out a period after the last delivery year for which applications valuations are required; and

(b) require the delivery body—

(i) to make available such further information or analysis in respect of such applications valuations as may be specified in the contract allocation framework;

(ii) to provide some or all of the applications valuations to a person or persons (other than the Secretary of State) as may be specified in the contract allocation framework; and

(iii) to make publicly available any or all of the applications valuations on such date or dates as may be specified in the contract allocation framework.

CHAPTER 2 — Requirements applicable to contract allocation frameworks

Requirements applicable to allocation frameworks

30

(1) A contract allocation framework must ensure that, in respect of an allocation round to which it applies, the contract allocation process included in the framework complies with the following paragraphs.

(2) Except in respect of a CFD notification which is required to be made further to Part 8—

(a) the total value of qualifying applications for which CFD notifications are to be given must not exceed the contract budget; and

(b) a contract allocation process must not result in an application being a successful application if that result would be in breach of sub-paragraph (a).

(3) Subject to paragraph (2)(b), where minima apply to an allocation round and the value of qualifying applications to which the minima apply is less than or equal to the minima, the contract allocation process must result in—

(a) all those applications being successful applications; and

(b) the final strike price which applies to those successful applications being the administrative strike price applicable to those applications.

(4) Where maxima apply to an allocation round, the contract allocation process must result in the value of successful applications to which such maxima apply not exceeding the maxima.

(5) Subject to paragraph (2)(b), for those applications where maxima do not apply or the maxima are not exceeded, the contract allocation process must result in—

(a) all those applications being successful applications; and

(b) the final strike price which applies to those successful applications being the administrative strike price applicable to those applications.

(6) Except for those applications which become successful applications further to paragraph (3) or (5), the contract allocation process must include a competitive process (or more than one) which when complied with by the delivery body enables the delivery body to determine—

(a) which qualifying applications are successful applications; and

(b) the final strike price applicable to those successful applications.

(7) The administrative strike price applicable to a qualifying application must be the maximum final strike price which may apply to that application.

(8) The contract allocation process must apply to each qualifying application.

(9) Paragraphs (2) and (4) are subject to regulation 11(4A).

CHAPTER 3 — Commencement and completion of a contract allocation process

Non-qualification review and appeal deadline dates

31

(1) The contract allocation framework may specify in respect of an allocation round—

(a) the non-qualification review request date; and

(b) the appeals deadline date.

(2) The Secretary of State must, in such manner as the Secretary of State thinks appropriate, publish in respect of an allocation round a date on which the Secretary of State is minded to require the contract allocation process for the allocation round to commence (“the post-appeals indicative start date”).

(3) The post-appeals indicative start date must be no earlier than 10 working days after the appeals deadline date.

Notices of requests for review or appeal

32

(1) The delivery body must give a notice to the Secretary of State and the Authority as soon as practicable after the non-qualification review request date stating the number, if any, of review notices received.

(2) Paragraph (3) applies where—

(a) the delivery body gives a notice under paragraph (1) which states that at least one review notice has been received; and

(b) in respect of at least one request made for a non-qualification review, the delivery body upholds the non-qualification determination.

(3) Where this paragraph applies, the Authority must give a notice to the Secretary of State and the delivery body as soon as practicable after the appeals deadline date stating the number, if any, of qualification appeals made.

(4) Paragraph (5) applies where a notice has been given under paragraph (3) which states that at least one qualification appeal has been made.

(5) Where this paragraph applies, the Authority must give a notice to the Secretary of State and the delivery body by no later than 10 working days before the post-appeals indicative start date which states—

(a) the number, if any, of qualification appeals which are not determined at the date on which the notice is given; and

(b) where at least one qualification appeal is not determined, the estimated date for its determination.

(6) Paragraph (7) applies where a notice has been given under paragraph (5) which states that at least one qualification appeal is not determined.

(7) Where this paragraph applies, the Authority must give a notice to the Secretary of State and the delivery body by no later than 3 working days before the post-appeals indicative start date which states the matters set out in paragraph (5)(a) and(b).

(8) Paragraph (9) applies where a notice has been given under paragraph (7) which states that at least one qualification appeal is not determined.

(9) Where this paragraph applies, the Authority must give a notice to the Secretary of State and the delivery body which states the matters set out in paragraph (5)(a) and (b)—

(a) by no later than 10 working days after the post-appeals indicative start date; and

(b) where a notice is given under sub-paragraph (a) which states that at least one qualification appeal is not determined, at no later than 10 working day intervals thereafter until all qualification appeals are determined by the Authority.

Commencement of the allocation process

33

(A1) Where the delivery body determines that all applications made further to an allocation round are qualifying applications (whether under regulation 17 or following any non-qualification review under regulation 20), the delivery body must commence the contract allocation process as soon as reasonably practicable after the date of the last notice given under regulation 19, or as the case may be, last non-qualification review notice.

(1) Where a notice is given under—

(a) regulation 32(1) that no review notice has been received, the delivery body must commence the contract allocation process as soon as practicable after the date on which the delivery body gives the notice;

(b) regulation 32(3) that no qualification appeal has been received, the delivery body must commence the contract allocation process as soon as practicable after the date on which the delivery body receives the notice;

(c) regulation 32(5) or (7) which states that no qualification appeal is not determined, the delivery body must commence the contract allocation process as soon as practicable after the date on which the delivery body receives the notice;

(d) regulation 32(9) which states that at least one qualification appeal is not determined, the delivery body must not commence the contract allocation process unless the delivery body receives a notice under paragraph (2).

(2) The Secretary of State may give a notice to the delivery body which directs the delivery body to commence the contract allocation process on the date stated in the notice (“the directed date”), which must be a date after the appeals deadline date.

(3) Where a notice is given under paragraph (2), the Secretary of State may withdraw it by giving a notice to that effect to the delivery body at any time before the directed date.

(4) A copy of a notice given under paragraph (2) or (3) must be given by the Secretary of State to the Authority.

(5) Where—

(a) before the directed date a qualification appeal is determined; and

(b) the application subject to the qualification appeal is determined as a qualifying application,

the Authority must immediately give a notice to the Secretary of State and the delivery body stating details of that qualifying application.

(6) Where further to this regulation the delivery body must commence the contract allocation process, the delivery body must give a notice to the CFD counterparty which states—

(a) when the contract allocation process has commenced; and

(b) which qualification appeals are not determined at that date.

Delay to the commencement of allocation processes

34

(1) This regulation applies where the commencement of a contract allocation process under regulation 33 is more than 5 months after the application closing date.

(2) The Secretary of State may give a notice to the delivery body to require it to give a notice (“a variation notice”) to each qualifying applicant and pending applicant which states that target dates may be delayed by the applicant by a period not greater than that specified in the Secretary of State’s notice.

(3) The delivery body must comply with a notice given to it by the Secretary of State under paragraph (2).

(4) Where a variation notice is given, a qualifying applicant or pending applicant who wishes to delay the target dates must do so by giving a notice to the delivery body with any delayed target dates by no later than 5 working days after the date of the variation notice.

(5) Where delayed target dates are provided in accordance with paragraph (4), the delivery body must—

(a) substitute those dates for those provided with the application; and

(b) to the extent that those dates affect any of the applications valuations determined under regulation 29, re-determine in accordance with regulation 29 such of the applications valuations as are affected.

(6) The delivery body must not continue with the contract allocation process until the later of—

(a) the time to provide delayed target dates has expired; or

(b) any re-determination of applications valuations required under paragraph (5)(b) has been made.

Completion of the allocation process

35

(1) The delivery body must give a notice to the Secretary of State once the delivery body is satisfied that it has completed the contract allocation process.

(2) The delivery body must provide to the CFD counterparty—

(a) a copy of a notice given under paragraph (1); and

(b) a statement of which qualification appeals, if any, are not determined at the date of the notice.

CHAPTER 4 — Auditing, re-runs and termination

Auditing

36

(1) The delivery body must obtain an audit of the calculations—

(a) likely to be made by it in the contract allocation process in relation to an estimated budget as soon as reasonably practicable after an estimated budget notice has been given to the delivery body; and

(b) made by it in the contract allocation process as soon as reasonably practicable after a notice is given under regulation 35(1) (completion of the contract allocation process).

(2) An audit under paragraph (1) must—

(a) be carried out by a person (“the auditor”) independent of the delivery body and who is qualified to perform an audit of the calculations made in the contract allocation process; and

(b) include provision of a report to the delivery body (“an audit report”) which—

(i) sets out whether or not the auditor considers that calculations have been made correctly and accurately; and

(ii) where applicable, identifies any calculations which the auditor considers were not correctly or accurately made and identifies the consequences of those calculations.

(3) Where during a contract allocation process bids of strike prices are made—

(a) the audit report must not include any information which would enable the identification of which bids were made by which applicant; and

(b) the delivery body must provide details of those bids to—

(i) the auditor; and

(ii) the Authority, where the Authority requests the details.

(4) Subject to paragraph (5), where the delivery body is provided with an audit report it must make the report publicly available as soon as practicable after Part 6 applies to the allocation round.

(5) The delivery body may exclude from publication any part of the audit report which the delivery body considers to contain commercially confidential information.

(6) In this regulation, “audit of the calculations” means an audit of whether or not the calculations required by the contract allocation framework were—

(a) applied correctly; and

(b) made accurately.

Provision of audit report to the Secretary of State

37

(1) Subject to regulation 40(1), as soon as practicable after the audit report is received, the delivery body must give a notice to the Secretary of State which—

(a) includes the audit report; and

(b) only where a report is obtained under regulation 36(1)(b), having regard to that report, states whether the delivery body intends—

(i) to proceed in accordance with Part 6 and, if so, the date on which it intends to do so (“a proceed notice”); or

(ii) to re-run the contract allocation process or any part of it as set out in the notice and, if so, the date on which it intends to commence the re-run (“a re-run notice”).

(2) A date under paragraph (1)(b) must be not be earlier than 2 working days after the date of the notice.

Proceeding, re-running an allocation process or terminating an allocation round

38

(1) ... Where the delivery body gives—

(a) a proceed notice, the Secretary of State may give the delivery body a direction—

(i) to re-run the contract allocation process or a part of it as set out in the direction and when to commence the re-run (“a re-run direction”); or

(ii) to take no further steps in respect of the allocation round (“a halt direction”);

(b) a re-run notice, the Secretary of State may give the delivery body—

(i) a direction to proceed in accordance with Part 6 and when to do so (“a proceed direction”); or

(ii) a halt direction.

(2) A direction under paragraph (1) may not be given later than 2 working days after the date of the proceed notice or the re-run notice.

(3) The Secretary of State must give a termination notice as soon as practicable after giving a halt direction.

Re-running an allocation process

39

(1) Paragraph (2) applies where the delivery body—

(a) gives a re-run notice and does not receive in respect of that notice—

(i) a proceed direction; or

(ii) a halt direction; or

(b) receives a re-run direction.

(2) Where this paragraph applies, the delivery body must—

(a) ... in accordance with the re-run notice or re-run direction commence the re-run of the contract allocation process or part of it; and

(b) after completion of the re-run, comply with regulation 35.

(3) The contract allocation framework may, in respect of an allocation round to which it applies, set out periods within which the delivery body must complete any re-run of the contract allocation process or part of it.

CHAPTER 5 — Delay and re-running the contract allocation process

Delay after completion of allocation processes

40

(1) Where the delay period has expired—

(a) a proceed notice or a re-run notice must not be given; and

(b) the delivery body must not re-run part only of the contract allocation process.

(2) Where paragraph (1) applies the delivery body must—

(a) re-run the contract allocation process;

(b) comply with regulation 34(2) to (6); and

(3) In this regulation, “delay period” means—

(a) where a variation notice was not required to be given when the contract allocation process commenced, a period of more than 5 months has expired since the application closing date; or

(b) where a variation notice was required to be given when the contract allocation process commenced, a period of more than 5 months has expired since the date on which the variation notice was required to be given.

(4) The contract allocation framework for the allocation round may provide for a period other than “5 months” stated in paragraph (3)(a) or (b) and where such other period is provided, “delay period” has effect with that modification.

PART 6 — CFD notifications

Application of Part 6

41

This Part applies where the delivery body—

(a) gives a proceed notice and does not receive in respect of that notice—

(i) a re-run direction; or

(ii) a halt direction; or

(b) receives a proceed direction.

Timing and content of CFD notifications and notices

42

(1) The delivery body must comply with this regulation—

(a) where a proceed notice applies, as soon as practicable after the period specified in regulation 38(2) to receive a re-run direction or a halt direction has expired;

(b) where a proceed direction applies, in accordance with the time period in that notice.

(2) The delivery body must in respect of each successful application—

(a) concerning a phased offshore wind CFD unit, give a CFD notification in respect of each phase; or

(b) where sub-paragraph (a) does not apply, give a CFD notification.

(3) A CFD notification must state the final strike price applicable to the successful application and include such information—

(a) supplied by the applicant to the delivery body with the application; or

(b) as may be contained in the contract allocation framework,

which enables the CFD counterparty to complete the terms and conditions applicable to the intended CFD.

(4) Paragraph (5) applies to each qualifying application which is not a successful application, other than a pending application.

(5) Where this paragraph applies, the delivery body must give a notice to each applicant in respect of the qualifying application made by the applicant which states—

(a) that a CFD notification is not given in respect of the qualifying application; and

(b) the reason why a CFD notification is not given.

PART 7 — Disputes and appeals

Disputes concerning non-qualification determinations: qualification appeals

43

(1) Where—

(a) a non-qualification review notice has been given to an applicant;

(b) in that notice, a non-qualification determination is upheld; and

the applicant may apply to the Authority to determine that dispute (“a qualification appeal”).

(2) A qualification appeal must be made—

(a) by notice to the Authority;

(b) in such form and manner as the Authority requires; and

Requirements for qualification appeals

44

(1) A qualification appeal must contain—

(a) a concise statement which—

(i) identifies the relevant part of the non-qualification determination in dispute; and

(ii) sets out the facts on which the applicant relies;

(b) a summary of the grounds for disputing the non-qualification determination;

(d) a schedule listing the documents submitted with the qualification appeal.

(2) A qualification appeal must be accompanied by copies of—

(a) the non-qualification determination and the non-qualification review notice;

(b) any information or evidence submitted to the delivery body in support of the non-qualification review; and

(c) any other documentary evidence on which the applicant wishes to rely in support of the qualification appeal and which—

(i) was provided to the delivery body in support of the non-qualification review; or

(ii) is needed to show what evidence was before the delivery body when it upheld the non-qualification determination.

(3) A qualification appeal must not include any other documentary evidence.

(4) A copy of a qualification appeal must be sent by the applicant to the delivery body at the same time as it is sent to the Authority.

Notification and representations

45

(1) Where a qualification appeal has been made in accordance with regulations 43 and 44, the Authority must give a notice to the delivery body which—

(a) identifies the applicant and the non-qualification determination; and

(b) states that—

(i) a qualification appeal has been made; and

(ii) the delivery body may reply to the qualification appeal.

(2) The delivery body may reply to a qualification appeal where it receives a notice under paragraph (1) and such a reply must be given—

(a) to the applicant and the Authority; and

(b) by no later than 5 working days after the date of the notice given under paragraph (1).

Determinations of the Authority

46

(1) The Authority must determine a qualification appeal as soon as practicable.

(2) The determinations which the Authority may make are—

(a) to uphold the non-qualification determination; or

(b) that the applicant is a qualifying applicant.

(2A) The Authority may by notice require the delivery body to provide it with information to assist the Authority to determine a qualification appeal.

(2B) Where the delivery body—

(a) holds the information required by the notice, it must provide the Authority with the information;

(b) only holds part of the information required by the notice, it must provide the Authority with the information it holds and a statement describing the information that it does not hold;

(c) does not hold any of the information required by the notice, it must provide the Authority with a statement that it does not hold the information.

(2C) The delivery body must provide the information required by the notice by no later than 5 working days after the date of the notice.

(3) Where the Authority has made a determination, it must give a notice to the applicant , the Secretary of State and the delivery body which—

(a) states the determination of the Authority; and

(b) the date of the determination.

(4) A notice under paragraph (3) must be given as soon as practicable after the date of the determination by the Authority.

Appeal to the High Court or Court of Session

47

(1) Where the Authority upholds a non-qualification determination, the applicant may make an appeal to the High Court or, in Scotland, the Court of Session, on a point of law.

(2) An appeal under paragraph (1) must be made by no later than 28 days after the date on which the notice is given under regulation 46(3) which states that the non-qualification determination is upheld.

Register of appeals

48

(1) The delivery body must establish and maintain a register of any qualification appeals (“the appeals register”).

(2) The appeals register must include details of—

(a) the name of an applicant making a qualification appeal;

(b) the CFD unit included in the non-qualification determination; and

(3) The details of a qualification appeal must be removed from the appeals register as soon as practicable after one year from the date of the determination of the Authority in respect of that appeal.

(4) Subject to paragraph (5), the appeals register must be made publicly available.

(5) The delivery body must not make publicly available on the appeals register any qualification appeal made under an allocation round until after Part 6 applies to that round.

PART 8 — Pending applications

Application of this Part

49

(1) This Part applies where—

(a) an applicant has in accordance with regulations 43 and 44 made a qualification appeal in respect of an application; and

(b) that appeal has not been determined when the contract allocation process for the allocation round commences.

(2) An application to which paragraph (1) applies is a “pending application” and an applicant to whom paragraph (1) applies is a “pending applicant”.

Strike price bids

50

(1) Paragraphs (2) and (3) apply where, under the contract allocation framework, an applicant in respect of an application equivalent to the pending application (“an equivalent application”) is entitled to make a bid of strike prices before or during the contract allocation process.

(2) Where this paragraph applies, the delivery body—

(a) must ensure that the pending applicant is able to make bids of strike prices in respect of the pending application to the same extent as an applicant may make such bids in respect of an equivalent application;

(b) must not apply any bid (“a pending bid”) made by a pending applicant in the contract allocation process; and

(3) Where this paragraph applies, the delivery body must destroy a pending bid—

(a) if an appeal by the pending applicant is made to the High Court or the Court of Session under regulation 47 and the court rejects the appeal; or

(b) if no appeal is made under regulation 47.

Successful applications determined by the Authority

51

(1) This regulation applies where the Authority determines that a pending application is a qualifying application after the contract allocation process for the allocation round commenced.

(1A) Paragraph (1B) applies where the delivery body—

(a) receives a notice from the Authority in accordance with regulation 46(3) that states the determination of the Authority is that an applicant is a qualifying applicant; and

(b) has not given a proceed notice under regulation 37(1)(b)(i) in respect of the most recent run of the contract allocation process for the allocation round.

(1B) Where this paragraph applies, the delivery body must—

(a) re-run the contract allocation process; and

(b) after completion of the re-run, comply with regulation 35.

(2) Where the contract allocation process, or such part of it as applies to equivalent applications, is to be re-run further to Chapter 4 or 5 of Part 5 or paragraph (1B), the delivery body must ensure that the re-run process includes any pending application which is determined as a qualifying application.

(3) Where the determination of a pending application as a qualifying application is made after Part 6 applies, the delivery body must determine whether or not the pending application is a successful application in accordance with the contract allocation framework for the allocation round.

(4) Subject to paragraph (5), paragraph (6) applies where—

(a) a variation notice was not required to be given when the contract allocation process commenced and a period of more than 5 months has expired since the application closing date; or

(b) a variation notice was required to be given when the contract allocation process commenced and a period of more than 5 months has expired since the date on which the variation notice was required to be given.

(5) The contract allocation framework for the allocation round may provide for a period other than “5 months” stated in paragraph (4)(a) or (b) and where such other period is provided, paragraph (4) has effect with that modification.

(6) Where this paragraph applies—

(a) the delivery body must give a notice to the pending applicant stating that target dates may be delayed by the applicant;

(b) if the pending applicant wishes to delay the target dates, the applicant must do so by giving a notice to the delivery body with any delayed target dates by no later than 5 working days after the date of the variation notice; and

(c) if such delayed target dates are provided, the delivery body must make the determination under paragraph (3) using the varied target dates.

(7) The delivery body must make the determination required by paragraph (3) having regard to any pending bid made by the pending applicant, including any flexible bid.

(8) Where a pending application is a successful application, the delivery body must comply with regulation 42(2) in respect of that application.

(9) Paragraph (8) applies notwithstanding that the contract budget for the allocation round may be exceeded by reason of giving a CFD notification in respect of the pending application.

(10) In paragraph (7), “flexible bid” means a bid, where it is permitted under the contract allocation framework, in which the applicant specifies—

(a) a strike price;

(b) the first delivery year as a year the same as or after the first delivery year set out in the applicant’s application;

(c) a target commissioning window start date as a date on or after the target commissioning window start date provided by the applicant with the applicant’s application; and

(d) the amount of electricity to be generated as an amount which is no greater than the amount set out in the applicant’s application.

Appeals to the High Court or the Court of Session

52

(1) This regulation applies where—

(a) under regulation 47 a pending applicant has made an appeal to the High Court or the Court of Session in respect of a pending application; and

(b) the court holds that the Authority made an error of law in upholding the non-qualification determination in respect of the application.

(2) The court may in its discretion—

(a) remit the pending application to the Authority to re-consider the non-qualification determination;

(b) hold that the pending application is a qualifying application and require the delivery body to comply with, as appropriate, regulation 51(2) or (3) as is relevant to the application; or

(3) Where—

(a) paragraph (2)(a) applies; and

(b) on a re-consideration the Authority determines that the pending application is a qualifying application,

the delivery body must comply with regulation 51(2) or (3) as is relevant to the application.

Notices that no CFD notification is given

53

(1) The delivery body must comply with paragraphs (2) and (3) in respect of a pending application where—

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