We propose to apply the dispute resolution incentive and demand forecasting accuracy incentive of Special Licence Condition 4L to the Early Capacity Auction. These incentives have been and continue to be important for incentivising National Grid Electricity Transmission (NGET) to produce adequate outputs in delivering Electricity Market Reform (EMR).
The dispute resolution incentivises NGET to devote the appropriate quality and quantity of resources to the decisions it made at the application and Tier 1 review stages for dispute resolution. The demand forecasting incentive, meanwhile, is crucial in ensuring lower costs to consumers due to a lower risk of under- or over-procurement of capacity.
This consultation has closed and was not progressed further.