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Detail of outcome
This technical update forms the government response to the consultation, and sets out the decision to implement a market-wide capacity market.
Original consultation
Summary
Seeking views on a Strategic Reserve option and a market-wide mechanism offering incentives to providers willing to offer reliable capacity.
We consulted on 2 options: a targeted mechanism in the form of a Strategic Reserve (a development of the lead option from the December 2010 electricity market reform consultation); and a market-wide mechanism in which all providers willing to offer reliable capacity are provided incentives to do so.
On 15 December Government published Planning our electric future: technical update which forms the government response to the consultation, and sets out our decision to implement a market-wide Capacity Market. The technical update also provides a high level summary of responses to this consultation and includes a list of respondents at annex A. Individual responses are available in full.
The technical update is also accompanied by an impact assessment. We will continue to work closely with stakeholders during the detailed design phase from 2012.
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