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:
- owning and managing the Capacity Market (CM) rules after the first CM auction
- a Dispute Resolution role between NGET and participants in the CM and CfD.
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.