In SEM-23-080, the SEM Committee consulted on two modified and combined CMC modifications to deliver a more cohesive overall approach to managing risks associated with delivering multi-year New Capacity.
The SEM Committee is today, 30th November 2023, publishing a decision paper on these two CMC Modifications.
The SEM Committee has decided to implement both CMC Modifications set out in SEM-23-080, i.e.:
• Modification 1: Linking approval of Substantial Financial Completion Delays to Long Stop Dates and Capacity Quantity End Date and Time; and
• Modification 2: Providing a mechanism for the SEM Committee to approve extensions to the Long Stop Date and Capacity Quantity End Date and Time when delays arise post-Substantial Financial Completion.
Both Modifications will apply only to Multi-Year New Capacity. The SEM Committee has decided that the Modifications will apply to auctions with capacity delivering from Capacity Year 2024/25 onwards. This will include auctions due to take place in 2024. For auctions held after 2024, the SEM Committee will consider whether these Modifications continue to be appropriate. Under both modifications, the SEM Committee would consider applications for extensions on a case-by-case basis and grant extensions only where consistent with the objectives of the CMC, when the market participant has justified the request with robust evidence and where the extension would otherwise be consistent with the SEM Committee’s statutory duties.