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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.
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.