Five Year Review of the Capacity Market Rules – First Policy Consultation

Publication date
16th April 2019
Closing date
28th May 2019
Policy area
Status

This consultation considers discrete areas of the Rules or the CM framework that aligns with the priorities identified in our open letter in addition to groups of proposals, such as those that have been delayed from previous years.

This consultation therefore proposes changes that we are aiming to implement to simplify the CM in the short term.

These include:

  • Amendments to reduce the complexity and burden of Prequalification, including enabling providers to delay submission of certain data items to the agreement management process. We expect this to diminish the risk of rejection of Applications for Prequalification. These amendments are discussed in Section 3;
  • Amendments to reduce the burden of a New Build Capacity Market Unit (“CMU”) having to supply reports by an Independent Technical Expert (“ITE”) ahead of the Delivery Year. These amendments are discussed in Section 4;
  • Amendments to facilitate a more open and liquid secondary trading market, including by opening the secondary trading market from the T-4 Auction and by reducing barriers to participation in secondary trading. These amendments are discussed in Section 5;
  • Amendments to reduce the complexity of participation, including changes to increase clarity of the Rules and enabling changes to aspects of CMU configuration between the Auction and the Delivery Year. These amendments are discussed in Section 6; and
  • Amendments which we have consulted on and made decisions on to implement in previous years but were delayed to enable effective IT system delivery. These amendments are discussed in Section 8.

We are also using this consultation to look forward and assist in developing our policy for future consultations.

This consultation will close on 28 May 2019. We will publish our review of the Rules in the summer. At that time, we will implement some of the changes consulted herein which will be subject to implementation and delivery timescales of the Delivery Partners. We will subsequently consult on more detailed proposals to implement some of the other changes to the Rules discussed in this document. This will include a consultation on changes to our Rules change process guidance in summer and a consultation on NGESO’s financial incentives and role in with a view to amending the Special Conditions of NGESO’s Electricity Transmission Licence ahead of April 2020.

As part of our Five Year Review process, we will be holding a stakeholder event at our offices on 10 July 2019. This event will be focused on the issues we have consulted on in this consultation and on our future work programme. Please register on EventBrite by 3 July.

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