Common use of Settlement and Payment Clause in Contracts

Settlement and Payment. ‌ Wave 1 optional trials will provide 2,520 hours of opportunity for DER to be available. Every hour they are available will contribute towards their participation payment. Participation Payments will be made in line with the monthly settlement process where the cumulative number of hours a DER was available for will be calculated and settled for accordingly, in line with Table 2 below. Where a DER has already received payment in a previous month, additional payments will only be made to reflect the additional hours the DER were available for but have not yet been compensated. For example, if a DER achieves 700 hours of availability over month 1 and 2, they will receive £36,000 through the month 2 payment process. If by the end of month 3 they have cumulatively been available for 1000 hours (including month 1-2 availability) they will receive an additional £2,000 (£38,000 minus £36,000) through the month 3 payment process. For the purpose of determining hours achieved, a DER Unit will be deemed to have been available for each Settlement Period: If non-synchronous, when it is online with an active communications link as indicated by the DERMS Monitoring, in voltage droop control mode, and has submitted to the DERMS Web Interface an Expected Operating Level for active power (which could be zero, but for which the associated reactive power volume available would be non-zero.). If synchronous, when it is online with an active communications link as indicated by the DERMS Monitoring, in voltage control mode, and has submitted to the DERMS Web Interface an Expected Operating Level for active power (which could be zero, but for which the associated reactive power volume available would be non-zero). For the purpose of determining Reactive Power Availability in Wave 1 Optional Technical Trials, a Provider is expected to offer its full range of Reactive Power Availability for each active power operating level, consistent with the performance test at site commissioning.