Summary
We're seeking views on proposed changes to the Capacity Market to
modernise Capacity Market Rules and improve the participation and
delivery assurance of consumer-led flexibility (via Demand Side
Response mechanisms).
This consultation closes at
11:59pm on 17 February 2025
Consultation description
The Capacity Market (CM) is our main mechanism for ensuring
security of electricity supply and has already secured the
majority of Great Britain's capacity needs out to 2027/28.
It provides all forms of capacity, including Demand Side Response
(DSR) to enable consumer-led flexibility, generation, storage and
interconnection with the right incentives to be on the system to
deliver when needed.
The CM is a technology-neutral scheme, underpinned by Rules which
set out the requirements on its participants. The CM Rules are
regularly reviewed and amended to ensure they remain fit for
purpose and to reflect changing market conditions.
This consultation is seeking views on:
- a series of improvements to the clarity of the CM Rules.
Government is proposing to do this by removing ambiguities and
out of date Rules
- a change to the rules to clarify that existing units can
alter an initial Opt-out Notification if their operational
circumstances change
- an extension to enable mothball plants to apply for 2025
prequalification for auctions held in 2026
- proposals to address administrative burdens for CM
participants and CM Delivery Bodies with respect to aggregated
DSR portfolios, and bolstering delivery assurance
- the introduction of a termination fee for failure to
demonstrate agreed DSR capacity ahead of Delivery Years
This may be of interest to:
- Capacity Market Participants
- energy suppliers and DSR providers
- trade bodies
- consumer groups
- Capacity Market delivery partners
This consultation is being published alongside a call for evidence on
consumer-led flexibility.
We encourage respondents to review both the consultation and the
call for evidence in tandem, and respond to both
using the online
response form.
Read our consultation privacy
notice.
Documents
Capacity Market: proposals to
modernise Rules and improve participation and delivery assurance
of consumer-led flexibility
Ways to respond
Respond online
or
Email to:
futureelectricitysecurity@energysecurity.gov.uk
