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This is the government response to two consultations:
The Capacity Market Supplementary Design proposals and Transitional Arrangements, which was published in September and closed on 5 November 2014.
The Consultation on proposed amendments to the Capacity Market Rules 2014 and explanation of some immediate amendments to the Capacity Market Rules 2014, which was published in August and closed on 9 September 2014.
This consultation seeks views on several aspects of the Capacity Market, including transitional arrangements. Consultation responses will be considered and changes will be made to the rules and regulations ahead of the second Capacity Market auction. These are proposals:
- to include interconnected capacity in the Capacity Market. The Government has made a commitment to allow interconnection to participate in the Capacity Market from the second T-4 auction onwards.
- views on metering configuration for resources that are not party to the Balancing Settlement Code (BSC) and those that are subsets of Balancing Mechanism Units (BMUs).
- on technical changes to enable Obligation Trading in the Electricity Capacity Regulations 2014.
- on price duration curves, which aim to ensure value for money for consumers by evaluating bids based on contract duration as well as price.
- on other technical changes, which are minor and drafting corrections that are needed to ensure clarity in the rules and regulations.
- on the next steps in relation to the transitional arrangements auctions, inviting general comment from stakeholders.
The intention is for any changes to be effected by amending the relevant Regulations or Rules. We expect to lay any amending Regulations in Parliament in early 2015. Changes to the Regulations or Rules which are made as a result of this consultation will not apply to the first auction.
The consultation closes on 5 November. Responses should be sent to firstname.lastname@example.org