The Capacity Market (CM) is an aspect of the National Electricity Market Reform Programme (EMR). It is a legislative mechanism that aims to promote the provision of reliable electricity capacity to avoid future deficits in available electricity. This practical note focuses on the rights and obligations granted to those who succeed in pre-qualification and auction. The government has established the Capacity Market (CM) as part of its electricity market reform policy. The aim is to encourage investment in more sustainable, low-carbon electricity capacity at the lowest cost to energy consumers. This is necessary to ensure the supply of electricity for the future. Implementation of electricity market reform provides stakeholders with a comprehensive overview of EMR policy. The document contains chapters on the two main mechanisms put in place by the government to reform the electricity market: the Contracts for Diversification (CFDs) and Capacity Market, as well as details on measures to promote greater energy efficiency through the Electricity Demand Reduction Program (EDR). Under the Government`s Electricity Market Reform Act, the Capacity Market will ensure the security of the electricity supply by providing, in addition to electricity revenues, a payment for reliable sources of capacity to ensure that they provide energy when needed. This will encourage the investments we need to replace older power plants and support more intermittent and inflexible low-carbon sources. In the summer of 2019, the UK government will conduct an increased T-1 auction, which will be delivered in the winter of 2019/20, conditioning all agreements on the outcome of the Commission`s formal investigation. The UK government will soon discuss the regulatory changes needed to allow a T-1 auction.
Amber Rudd`s letter on electricity market reform 2015. The commitment of one of the two capital markets unions is not changed by trade. It would have been considered that the purchaser would have fulfilled his commitment by combining a service specific to other AGAs. The seller would not receive delivery payments for MW transferred to another capital markets union.