Electricity Market Reform (EMR)

It is estimated that over the next decade, GB will need around £100 billion of capital investment in its electricity infrastructure to accommodate projected future increases in electricity demand and to replace ageing power stations.

Electricity Market Reform (EMR) is a government policy to incentivise investment in secure, low-carbon electricity, improve the security of Great Britain’s electricity supply, and improve affordability for consumers.

How will EMR do this?

The Energy Act 2013 introduced a number of mechanisms. In particular:

A Capacity Market (CM)

This will help ensure security of electricity supply at the least cost to the consumer.

Contracts for Difference (CfD)

This will provide long-term revenue stabilisation for new low carbon initiatives. Find out more about CfD on GOV.UK.

Both will be administered by delivery partners of the Department of Energy and Climate Change (DECC). This includes National Grid Electricity Transmission plc (NGET) as the EMR Delivery Body.

Our role in EMR

In addition to extending our existing regulatory duties, DECC has given us new EMR roles including:

Below you can find all publications and updates we have produced in relation to EMR.

You can find out about our role in the Capacity Market and submitting CM Rules change proposals from our Capacity Market (CM) Rules page.

Publications and updates

  • Published: 7th Jun 2017
  • Reports and plans
  • 1 Associated documents
Annual report on NGET's performance of its functions in relation to the Capacity Market as the EMR Delivery Body.

  • Published: 7th Jun 2017
  • Reports and plans
  • 1 Associated documents
This is the third annual report on the operation of the Capacity Market, following the third round of Capacity Market auctions from December 2016 to March 2017.

  • Published: 10th Aug 2016
  • Decisions
  • 1 Associated documents
This direction sets out the Authority’s decision to allow the Licensee to engage external temporary staff in the EMR Administrative Team.

  • Published: 19th Jul 2016
  • Decisions
  • 2 Associated documents
The Authority’s Direction to modify Special Condition 4L to extend National Grid Electricity Transmission's (NGET) incentives on demand forecasting and dispute resolution to the Early Capacity Auction.

  • Published: 6th Jun 2016
  • Reports and plans
  • 1 Associated documents
This is the second of these annual reports, following the second round of Capacity Market auctions in December 2015 and January 2016

  • Published: 6th Jun 2016
  • Reports and plans
  • 1 Associated documents
Annual report on NGET’s performance of its functions in relation to the Capacity Market as the EMR Delivery Body.

  • Published: 31st May 2016
  • Closed: 30th Jun 2016
  • Consultations and responses
  • 3 Associated documents
Proposal to extend the Demand Forecast and Dispute Resolution incentives to National Grid Electricity Transmission's (NGET) delivery of the Early Capacity Auction for delivery 2017-18.

  • Published: 15th Mar 2016
  • Decisions
  • 1 Associated documents
Determination under Parts B and D of Special Condition (SpC) 4A of National Grid Electricity Transmission plc’s Transmission Licence – reconciliation of allowed and efficiently incurred costs for Electricity Market Reform (EMR) preparatory activities.

  • Published: 19th Nov 2015
  • Open letters and correspondence
  • 18 Associated documents
This letter explains our initial views on the changes we are considering to the CM Rules (the Rules).

  • Published: 29th Oct 2015
  • Decisions
  • 4 Associated documents
Following our Notice on 17 September 2015 to modify Special Conditions 4A, 4L and 7D to the Electricity Transmission Licence held by NGET, we received one representation by NGET.

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