Summary
We are seeking views on a proposed change to remove the ability
for the location of a CMU to be changed after Prequalification.
This change is proposed to come into force in Winter 2025 for all
existing and new agreements.
This consultation closes at
11:59pm on 14 November 2025
Consultation description
The Capacity Market (CM) is
regularly reviewed to ensure it remains fit for purpose, reflects
changing market conditions and that the CM Rules ensure effective delivery and
encourage participation to create competitive auctions.
The government has recently published a consultation on proposed
changes to the Capacity Market Rules and Regulations.
Alongside this, an urgent reform has been identified which
requires a change to the Capacity Market Rules as soon as
possible. The proposal aims to enhance the functionality of the
scheme and strengthen delivery assurance. The consultation seeks
views on the following change:
Remove the ability for CMUs to change their address after
Prequalification: Changing the Rules to disallow any New
Build Capacity Market Units (CMUs) or Demand Side Response
(DSR) units from
changing the location of a Generating Unit or DSR CMU Component after
Prequalification. Removing the ability for New Build Projects to
change their address would provide greater assurances that
Applicant CMUs
represent genuine New Build CMUs that can contribute to
GB Security of Supply. This
also better reflects the intent of the Capacity market that
projects should be viable at the point of Prequalification.
The consultation is open to anyone to respond to but will be of
particular interest to:
- energy industry
- consumer groups
- academia
- think tanks
- other organisations who have an interest in security of
supply and decarbonisation
Read our consultation privacy
notice.
Documents
Capacity Market: proposal
regarding locational changes of Capacity Market Units -
consultation document
Ways to respond
Respond online
or
Email to:
capacity.market@energysecurity.gov.uk
