Consultation outcome

Capacity Market: rules amendments to improve auction liquidity

• From: Department for Business, Energy & Industrial Strategy
• Published: 8 June 2022
• Last updated: 18 July 2022 — See all updates

This consultation has concluded

Download the full outcome

Capacity Market: rules amendments to improve auction liquidity - government response

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Detail of outcome

In June 2022, we consulted on two proposed measures to improve liquidity in the 2023 Capacity Market auctions. Industry respondents broadly welcomed these proposals. This government response confirms that the measures will be implemented without amendment.

Detail of feedback received

We received 30 responses from:

• Capacity Providers and trade associations representing multiple Capacity Providers
• Non-Governmental Organisations (NGOs)
• members of the public

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Original consultation

Summary

We're seeking views on 2 time-limited proposals designed to improve liquidity in the 2023 Capacity Market auctions.

This consultation ran from
midday on 8 June 2022 to 11:45pm on 22 June 2022

Consultation description

The government is seeking views on proposed amendments to the Capacity Market (CM) - the government’s main mechanism for ensuring security of electricity supply. The proposed changes will remove barriers to pre-qualification for the 2023 round of CM auctions, and so improve security of electricity supplies in the winter of 2023 to 2024 and beyond.

We are proposing to:

• postpone the introduction of the statutory requirement for independent verification of Fossil Fuel Emissions Declarations
• temporarily allow plant that have been mothballed to apply to pre-qualify for CM auctions

Documents

Capacity Market: rules amendments to improve auction liquidity

PDF, 211 KB, 11 pages

Published 8 June 2022
Last updated 18 July 2022 + show all updates

1. 18 July 2022

   Government response published.

2. 8 June 2022

   First published.