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This is the Government response to the Autumn 2015 Consultation on reforms to the Capacity Market.
DECC is seeking views on a number of changes to the electricity Capacity Market (CM), the way in which we ensure adequate electricity capacity is available in GB. The most significant of these will ensure that new-build generating plant which win agreements in the CM auction face the right incentives and penalties to ensure that they deliver fully and according to their agreements. This is intended to ensure that the mechanism operates as intended to maintain high levels of security of supply. Other changes are generally simplifications or minor, incremental improvements to the process, reflecting stakeholder suggestions and formal evaluation following the first auction last year.