CAPACITY MARKET CHANGES 2016

Author:John McPate

24th March 2016

The Capacity Market will help ensure security of electricity supply and is one of the main building blocks of the UK Government’s Electricity Market Reform (EMR). On the 1st March 2016 the Department of Energy & Climate Change (DECC) issued a consultation on reforms to the Capacity Market. These reforms include proposals to introduce a supplementary capacity auction in 2016 for the delivery year 2017/2018.

At this current time it is unclear as to the exact cost of bringing forward the capacity market delivery date. Therefore we are not in a position to make a statement as to how this cost is managed in future contract prices or existing ones yet.

Responses to the consultation must be made before the 1st of Apr, for further details about the consultation please click here