These Regulations make provision for payments to be made by, and to, electricity suppliers for the purposes of the Capacity Market established under Part 2, Chapter 3 of the Energy Act 2013 by the Electricity Capacity Regulations 2014 (S.I. 2104/2043) (“the Principal Regulations”) and by capacity market rules. Under the Principal Regulations, the Secretary of State is required to appoint a Settlement Body, and persons awarded capacity agreements in an auction (“capacity providers”) are entitled to receive payments from the Settlement Body (“capacity payments”) for generating or reducing demand for electricity at times of system stress, and are liable to make penalty payments to the Settlement Body where the capacity agreement is breached.