1. Opt-outs – Getting an overview
Explaining the general logic and answering specific questions
Sarra Boersig
02/09/2015

2. Agenda
1. The general logic
2. Specific Questions
3. testing

3. What does Opting Out look like
Relevant CMUs
- Existing Interconnector CMUs
- Existing Generating CMUs
- Refurbishing Interconnector CMU (Only Pre-refurb component)
- Refurbishing Generating CMU
(Only Pre-refurb component)
Type A
Mandatory CMU wishes to Opt Out
Only during Pre-Qualification Window
Start: Auction is set up
End: Pre-Qualification closes
Type B
Mandatory or Non- Mandatory CMUs have applied and Security of State changes auction parameters
Always after Pre-Qualification Window
Start: ‘Government has changed parameters’ field set to Yes
End: Opt out fix end date ( =17 days prior to first bidding window)
Opt-outs that were created as Type A can’t withdraw in this window!!
What does Opting Out look like
- Refurbishing CMU (Only Pre-refurb Component)-> still applying with post refurb! Therefore prerefurb archived and opt out notification created BUT status of application unchanged
Existing CMU-either never create an application or withdraw complete application, and if it was a mandatory CMU also an Opt-Out Notification. (4.11.1B)

4. What needs to happen if the secretary of state changes parameters?
Existing (Generating and Interconnector) CMUs must be able to withdraw their (old) application and instead submit an Opt-out notification for the same CMU
Opt-out applications for Existing CMUs raised during Prequal are not allowed to be withdrawn
Refurbishing CMUs must be able to opt-out their prerefurb component via the opt-out tab in the application even if they hadn‘t opted-out beforehand. They are not allowed to withdraw the entire application.
Can prerefurbs who opted-out originally now change to opt in again after parameters have been changed? No,only allow them to opt-out if they have been opted in before
Once submitted it is locked.
Any Opt-out needs to appear with zero credit cover on the CM register, they shouldn‘t take any info for the application

5. Agenda
1. The general logic behind it
2. Questions

6. What is a difference between Opt-Out Notification (which can be created as a “special type” of application) and Opt-Out Notification tab within Refurbishing applications?
Opt Out Notifications as special type of application is type A for Existing CMUs
Opt out tab within Refurb Applications are type A and type B for Refurbs because they can only EVER opt out their pre-refurb component
For Existing CMUs that opt out as type B we need to give them a way to create an opt out notification either via a tab or by allowing them to create an opt out application

7. What means SOS parameter
What means SOS parameter? I know that it is some flag from secretary of state, but what is it used for? It seems to me like a “second chance” to opt out and do not enter auction.
The Secretary of State is a division in the UK Government which sets parameters for the auction, e.g.
Price cap
Price taker threshhold (minimum amount of capital expenditure per kw of declared net capacity which a bidder must commit to)
De-rating factor for Interconnector CMUs
Maximum obligation period for a CMU type
Technology classes
It is used to correct former political decisions and ensure that political goals are being met by the auction and market design

8. Can be SOS parameter = YES changed after or before PQRD = results released date?
In theorie parameters could be changed anytime up to 17 days prior to the auction. But in our system the effect should only be there AFTER PQRD

9. Use case specifies that SOS parameter should enable Opt-Out tab after submission. Why it is visible also before submission? It was so requested in older CM1 defects. So they can apply with post refurb component only
Because mandatory Refurbishing CMUs need to be able to opt out their prerefurb component whilst still applying with their post-refurb component

10. How is the end date of SOS parameter time related to providing Planning Consents and/or Credit Cover tabs? What occurs first? User should opt-out or provide planning consents or credit cover? Can it occur at the same time? I am missing a timeline of the whole process and application lifecycle.
Planning Consent and Credit Cover are completely independent of Opt-outs
The only relevant timeline is the one in the overview

11. Are all other tabs editable when SOS parameter is YES?
No, only the Opt-out tab

12. All applications, which are not submitted when submission window is closed are “DEACTIVATED” by system overnight. Is there any exception for opt-out notification applications? Otherwise it will automatically deactivate all saved applications where current date > prequalification submission end date. NO exception
No, type b existing CMUs would not have created their Opt-out Notification before the PQ window ends.

13. Can EP user create new opt-out notification during SOS = yes period
Can EP user create new opt-out notification during SOS = yes period? How can he create it, when there are just auction with open submission window displayed in a dialog???
Yes, because of : (mandatory) prequalified CMUs need to create opt ot notifications if they opt out after SoS changes parameters
->tab

14. Opt-out and then Cancel Opt-out?
During PQ window they can submit and withdraw as often as they want to
For type b it is more complicated:
The rules are moot on whether a CMU that had applied, opts-out after parameters change, then changes their mind and withdraws that opt out  to return to the original application can do so…  However, this seems to be the intent behind special requirement 2 in B7.5.
“2.     It is possible to withdraw and cancel an opt-out notification as for an application during the Opt-out window”

15. Implementation Existing CMUs
The condition to make the button appear: 1. Auction has to be ACTIVE 2. Application type cannot be Opt-Out application 3. Relevant CMU type against which the application was created has to be Existing Int or Gen CMU. 4. Government has to change the parameters and OptOutFixEnd date auction parameter has to be in the future. 6. Current date is later than Prequal Closing Date 7. The application is not in the status saved, withdrawn or deactivated.

16. Implementation Refurbishing CMUs
1. Auction has to be ACTIVE 2. Application type cannot be Opt-Out application. 3. Relevant CMU type against which the application was created has to be Refurb Int or Refurb Gen. 4. Government has to change the parameters and OptOutFixEnd date auction parameter has to be in the future. 5. Current date is later than Prequal Closing Date 6. The opt-out section was NOT submitted before. 7. The application is not in the status saved, withdrawn or deactivated.

17. How to test this?
Create and submit 4 applications during the normal prequal window whilst the flag „SoS changes parameters“ is set to no:
1 prequal application for an Existing CMU
1 prequal opt in application for a refurbishing CMU
1 opt out application for an existing CMU
1 prequal opt out application for a prerefurbishing CMU
Change closing window to the past. Change SoS flag to yes and opt out fix end date to future. You can either already assess the applications and release results or not assess them yet (or anything inbetween)
After the flag has been changed
The prequal application for an Existing CMU should show a withdraw button and you need to be able to create an opt out application for the same CMU and auction
The prequal opt in application for a refurbishing CMU needs to allow you to opt out the prerefurb component and submit this
the opt out application for an existing CMU should NOT have the option to withdraw
The prequal opt out application for a prerefurbishing CMU should NOT have the option to withdraw

18. Any questions?