Consultation outcome

Proposals for implementation of Electricity Market Reform

This was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government
This consultation has concluded

Read the full outcome

Government response to consultation on proposals for implementation of Electricity Market Reform

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Impact Assessment on the Capacity Market (September 2014)

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Impact Assessment on CfD Secondary Legislation (June 2014)

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Impact Assessment on Supplier Obligation (June 2014)

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Analysis of Contract for Difference Supplier Obligation funding options: Redpoint report (23 June 2014)

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Impact Assessment on the Capacity Market (June 2014)

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Detail of outcome

This is the government response to the consultation Electricity Market Reform: Consultation on proposals for implementation (published October 2013) and addendum to this document, Supply Chain Plan Consultation (published November 2013). The consultation sought views on the proposals for implementing the key mechanisms for reforming the electricity market - Contracts for Difference (CFDs) and the Capacity Market - as well as their institutional and delivery arrangements. The Supply Chain Plan consultation set out proposals for implementing the key eligibility criteria of a supply chain plan for larger projects taking part in the allocation process for a CFD.


Original consultation

Summary

Setting out implementation proposals for key mechanisms for reform.

This consultation ran from
to

Consultation description

Supply Chain Plan consultation - an addendum to this consultation was published on 23 November 2013.

The consultation sets out implementation proposals for the key mechanisms for reform: the Contracts for Difference (CfDs) and Capacity Mechanism, as well as their associated institutional and transitional arrangements. It also seeks views on implementation of measures to manage any potential conflicts of interest for National Grid as the EMR delivery body.

DECC is seeking input from as wide a range of interested parties as possible and the consultation includes a series of broad questions to help shape contributions from interested parties. Following the closure of the consultation, we will consider responses and prepare amendments to the secondary regulations. We aim to publish the government response and to lay the final regulations in Parliament in spring 2014, and for the regulations to become law in Summer 2014.

Implementing Electricity Market Reform (EMR)

The publication Implementing Electricity Market Reform (EMR) intends to provide stakeholders with a comprehensive overview of EMR policy at a point where the implementing secondary legislation is laid before Parliament. The document includes chapters on the two main mechanisms that the government is introducing to reform the electricity market: Contracts for Difference (CFDs) and the Capacity Market, as well as detail on measures to encourage greater energy efficiency through the Electricity Demand Reduction (EDR) programme.

Documents

Electricity Market Reform: consultation on proposals for implementation

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Supply Chain Plan Consultation: addendum to Electricity Market Reform - consultation on proposals for implementation

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Impact Assessment of measures to address potential conflicts of interest arising in relation to the choice of National Grid as the delivery body for EMRIA

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Impact Assessment: Contracts for Difference

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Annex D: eligibility criteria

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Impact Assessment: Supplier Obligation – Contracts for Difference

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Impact Assessment: Capacity Market

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Impact of EMR on Interconnection

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Capacity Market Gaming and Consistency Assessment

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Estimating the costs and benefits of the Capacity Market

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Catalogue of consultation questions

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The Contracts for Difference (Allocation) Regulations 2014

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The Contracts for Difference (Supplier Obligation) Regulations

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The Electricity Capacity (Payment) Regulations 2014

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The Electricity Capacity Regulations 2014

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Capacity Market Rules: consultation draft

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Modifications to National Grid Licence: special condition N of NGET transmission licence (to manage conflicts of interest between the EMR delivery role and National Grid's commercial interests)

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Annex B: background on supporting and transitional policy arrangements

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Response form

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Updates to this page

Published 10 October 2013
Last updated 17 September 2014 + show all updates
  1. Updated Impact Assessment.

  2. Government response published.

  3. Supply Chain Plan consultation - an addendum to this consultation was published on 23 November 2013.

  4. Added: Impact Assessment: Capacity Market; Impact of EMR on Interconnection; Capacity Market Gaming and Consistency Assessment

  5. Supplier Obligation Impact Assessment and link to online response platform added.

  6. "Consultation on Proposals for Implementation" document amended on 11 October 2013. The amends do not affect the substance of the document but please refer to the latest version.

  7. First published.

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