Capacity Market 2023: Phase 2 proposals and 10 year review
Applies to England, Scotland and Wales
Read the full outcome
Detail of outcome
The government response document is in 2 parts.
The first part is a response to this consultation (the ‘Phase 2’ consultation).
The second part is a response to the consultation on rule amendments to support auction liquidity.
Government response update: 15 October 2024
Following the July 2024 Phase 2 government response, this update outlines the next steps for those policies from the Phase 2 consultation that were not progressed prior to the 2024 prequalification window.
We will now seek to lay legislation in Parliament to amend the Capacity Market Rules and Electricity Capacity Regulations in order to implement these proposals by the 2025 prequalification window.
This update should be read alongside the government response to the Phase 2 Consultation.
We intend to publish a response to the Review of the Capacity Market (Part B of this consultation) later this year. We will update this page when it’s published.
Detail of feedback received
We received 41 responses to this consultation from a wide variety of respondents, including:
- industry
- commercial representation
- delivery partners
The proposals were broadly supportive, while others provided useful feedback which the government has reflected on.
Original consultation
Consultation description
The consultation is in 2 parts:
Part A: Strengthening security of supply and alignment with net zero
This part of the consultation follows the January 2023 consultation and forms Phase 2 of reforms to the Capacity Market, building on the previous consultation and further engagement with stakeholders and industry.
The main policy proposals broadly fall into 2 categories:
- strengthening security of supply
- accelerating investment in low carbon technologies
The proposed reforms set out in Part A of this consultation represent the next step in the evolution of the Capacity Market and have been considered in light of the Review of Electricity Market Arrangements (REMA) programme.
Part B: Review of the Capacity Market
The Capacity Market Rules and Regulations contain a requirement to carry out a review every 5 years and publish a report. The next full review of the market (the 10-year review) is due to be published by Summer 2024.
This part of the consultation is a call for evidence to help inform this review.
Respondents can choose to answer one or both parts of the consultation.
See our consultation privacy notice.
Documents
Updates to this page
Last updated 15 October 2024 + show all updates
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Published an update to the government response for the Capacity Market: Phase 2 proposals.
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Public feedback and government response added.
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First published.