Consultation outcome

EMR: Contracts for Difference (Allocation) Regulations – Consultation on Non-Delivery Disincentive Exemptions

• From: Department of Energy & Climate Change
• Published: 25 September 2014
• Last updated: 23 February 2015 — See all updates

This was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government

This consultation has concluded

Read the full outcome

Government response to the Contracts for Difference (Allocation) Regulations – Consultation on Non-Delivery Disincentive Exemptions

PDF, 219 KB, 12 pages

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Detail of outcome

This publication provides the Government response to the Contracts for Difference (Allocation) Regulations – Consultation on Non-Delivery Disincentive Exemptions.

Following the consultation government is confirming its intention to implement the Non-Delivery Disincentive policy in amending legislation in accordance with the NDD policy update published on 28 January 2015[1] in time for a potential 2015 allocation round.

Changes we are undertaking are:

• to broaden the definition of property interest in amending legislation so that it includes freehold, leasehold, agreements for lease and lease options; and
• include in regulations that in the case where an offer of a CFD was not accepted, there will be a ground for exemption where litigation commenced or concluded after the last date to withdraw the application and that litigation would have had a material adverse effect on an applicant’s ability to comply with the terms of the CFD.

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Original consultation

Summary

This consultation is seeking views on further details of the policy that will introduce incentives to prevent early drop out and encourage contract signature and delivery of a CFD. The changes will be reflected in amended secondary legislation which we expect to lay in Parliament in early 2015.

This consultation ran from
10:30am on 25 September 2014 to 11:45pm on 5 November 2014

Consultation description

This consultation sets out proposals for the Non-Delivery Disincentive (NDD) for Contracts for Difference (CFDs). This policy is intended to incentivise successful CFD parties to deliver, and to minimise the risk of CFD contracts being awarded to projects which are in fact not able to deliver.

The changes will be introduced via amendments to The Contracts for Difference (Allocation) Regulations, which we expect to lay in Parliament in early 2015. Subject to approval of the draft regulations by Parliament, the changes will be in force for the second CFD allocation round.

It should be noted that we intend for the Non-Delivery Disincentive policy as set out in the consultation to apply to applications in the second allocation round, subject to changes to the policy and its implementation made as a result of this consultation.

The consultation closes on 5 November. Responses should be sent to [email protected].

Documents

Consultation on Non-Delivery Distinctive Exemptions

PDF, 376 KB, 23 pages

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Published 25 September 2014
Last updated 23 February 2015 + show all updates

1. 23 February 2015

   Government response to the Contracts for Difference (Allocation) Regulations – Consultation on Non-Delivery Disincentive Exemptions

2. 25 September 2014

   First published.