Electricity Market Reform

The Coalition Government’s Electricity Market Reform (EMR) seeks to maintain enough generation in the UK to meet demand despite planned closures of power stations and to decarbonise the industry in-line with legally binding targets. The rationale is to achieve those objectives at a lower cost than using existing policies as the Government also has the objective of keeping bills affordable.

EMR includes the Carbon Price Floor which has already come into effect and acts to set a minimum price of carbon in the UK. The Emission Performance Standard sets the annual limit of carbon emissions new fossil fuel power stations are allowed to emit.

new schemes for generators

EMR also includes the two support schemes known as the Capacity Market (CM) and Contracts for Difference (CfD), each requiring their own regulatory framework, operational processes, administrative bodies, legal contracts, new systems and data flows.

Latest news - On Wednesday 22nd July 2015, DECC announced that further information about the next CfD allocation round would be released in autumn. At this stage, it is unclear if and when the next round is expected but please get in touch if you would like to discuss our views or any future projects.

> Read more from DECC

impact on customer bills

New charges to cover the costs of CfDs and the Capacity Market will be added to our customer's bills from April 2015. Please see here for more information.

more information

See the DECC website for further information about EMR or contact us if you have any enquiries about how EMR impacts your company.

DECC Electricity Market Reform overview

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