GovWire

Securing the UKís electricity supply

Department of Energy and Climate Change

May 6
07:01 2016

The Government is taking action to ensure the UKs long-term energy security as it builds a system of energy infrastructure fit for the 21st century.

Following a consultation launched in March, a package of reforms to the Capacity Market has been confirmed. The Capacity Market is the UKs principal tool to ensure we have secure supplies of electricity.

The Government is taking action to ensure the UKs long-term energy security as it builds a system of energy infrastructure fit for the 21st century.

It is driving down costs and securing electricity at the lowest possible price for bill-payers. It gives market participants a payment to ensure there is enough electricity available during peak times in the winter.

Responses to the March consultation reflected clear support from industry and investors for three key reforms which will ensure the Capacity Market continues to deliver energy security:

  • Buying more electricity and buying it earlier;
  • Toughening sanctions for firms which go back on their Capacity Market agreements;
  • Bringing forward the Capacity Market by one year to the winter of 2017/2018.

In light of these responses, the Government has set out its intention to hold an auction this winter for delivery in 2017/2018 and will proceed with its other core proposals in the consultation, giving both bill-payers and the energy industry more certainty for the coming winters.

This will better safeguard our energy security so we can protect families and businesses from spikes in energy costs in the future.

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