Capacity Market reform: MPCM update
Published 16 February 2026
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This publication is available at https://www.gov.uk/government/publications/capacity-market-reform-multiple-price-capacity-market-proposals-update/capacity-market-reform-mpcm-update
The government published a consultation on changes to the Capacity Market for Prequalification 2026 in October 2025, a part of which included proposals for a potential Multiple Price Capacity Market (MPCM). The government consulted again in December, which included additional changes related to the possible introduction of an MPCM. The government has carefully considered the responses and evidence submitted by stakeholders. We are grateful to everyone who took the time to engage with this work.
A decision has now been taken not to proceed with implementing the policy proposals associated with the MPCM ahead of prequalification for the next Capacity Market Auction in March 2027.
Policy decisions on the matters we consulted on will be set out in full in the consultation responses in spring 2026. Please note this update does not apply to the other policies discussed in the consultations, but those related to the MPCM specifically.
We recognise the important role that dispatchable enduring capacity plays in supporting a reliable electricity system, particularly during longer periods of tight supply. We will continue to work with industry to better understand and tackle barriers these technologies face and consider where further action may help ensure that such capacity can come forward when needed.
Looking ahead, we remain committed to ensuring the government delivers on its security of supply and cost-effectiveness objectives and that the Capacity Market remains fit for a changing energy system.