Consultation outcome

Proposals for implementation of Electricity Market Reform

• From: Department of Energy & Climate Change
• Published: 10 October 2013
• Last updated: 17 September 2014 — See all updates

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

Ref: 14D/222

PDF, 1.35 MB, 139 pages

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Impact Assessment on the Capacity Market (September 2014)

Ref: DECC0151

PDF, 1.57 MB, 69 pages

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Impact Assessment on CfD Secondary Legislation (June 2014)

PDF, 939 KB, 46 pages

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Impact Assessment on Supplier Obligation (June 2014)

PDF, 1.41 MB, 65 pages

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

PDF, 4.19 MB, 50 pages

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Impact Assessment on the Capacity Market (June 2014)

PDF, 1.15 MB, 68 pages

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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.

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Original consultation

Summary

Setting out implementation proposals for key mechanisms for reform.

This consultation ran from
10 October 2013 to 11:45pm on 24 December 2013

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

Ref: ISBN 9780101870627, 13D/218, Cm. 8706

PDF, 4.87 MB, 288 pages

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

Ref: 13D/302

PDF, 697 KB, 15 pages

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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

PDF, 662 KB, 60 pages

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Impact Assessment: Contracts for Difference

PDF, 305 KB, 35 pages

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Annex D: eligibility criteria

MS Excel Spreadsheet, 60.9 KB

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Impact Assessment: Supplier Obligation – Contracts for Difference

Ref: DECC0150

PDF, 1.29 MB, 65 pages

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Impact Assessment: Capacity Market

Ref: DECC015

PDF, 1.55 MB, 78 pages

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Impact of EMR on Interconnection

PDF, 1.02 MB, 80 pages

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Capacity Market Gaming and Consistency Assessment

PDF, 1.03 MB, 56 pages

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Estimating the costs and benefits of the Capacity Market

PDF, 946 KB, 47 pages

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Catalogue of consultation questions

PDF, 290 KB, 23 pages

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The Contracts for Difference (Allocation) Regulations 2014

PDF, 291 KB, 22 pages

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The Contracts for Difference (Supplier Obligation) Regulations

PDF, 373 KB, 30 pages

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The Electricity Capacity (Payment) Regulations 2014

PDF, 364 KB, 30 pages

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The Electricity Capacity Regulations 2014

PDF, 389 KB, 29 pages

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Capacity Market Rules: consultation draft

PDF, 1.62 MB, 125 pages

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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)

PDF, 215 KB, 12 pages

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Annex B: background on supporting and transitional policy arrangements

PDF, 201 KB, 6 pages

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Response form

MS Word Document, 29.4 KB

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Published 10 October 2013
Last updated 17 September 2014 + show all updates

1. 17 September 2014

   Updated Impact Assessment.

2. 23 June 2014

   Government response published.

3. 25 November 2013

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

4. 24 October 2013

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

5. 23 October 2013

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

6. 11 October 2013

   "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. 10 October 2013

   First published.