The Delivery Year runs from October 1st to September 30th. For example, the "2018 Delivery Year" will run from October 1st 2018 to September 30th 2019.
A Capacity Provider is obliged to deliver the "Adjusted Load Following Capacity Obligation" for all of their units during a "System Stress Event". This is a period of (involuntary) load reduction, by voltage reduction or demand disconnection, which is necessary to maintain the security of the system in the event of a shortage of generation.
When a shortage of generation is anticipated, a Capacity Market Warning will be issued by the System Operator. Capacity providers will not be 'called upon' to deliver capacity or receive an individual despatch instruction. The Capacity Market Warning is a signal to all providers that system stress is anticipated. Four hours after the Issue of the Capacity Market Warning, if a System Stress Event occurs, any Provider who fails to deliver their Adjusted Load Following Capacity Obligation will be subject to penalties.
Penalies are related to a provider's Capacity Market Payment. Penalties are capped at 100% of a Capacity Provider's anual Capacity Market Payment with respect to a CMU, and at 200% of a CMU's monthly Capacity Market Payment.
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