Annual report on the EMR Delivery Body’s Performance of its functions in relation to the Capacity Market

The Electricity Capacity Regulations 2014 require us to provide the Secretary of State with an annual report on the Electricity Market Reform Delivery Body’s performance of its functions in relation to the Capacity Market.  We also cover their performance in relation to the Contract for Difference regime.

This is the fifth of these annual reports, following the end of the Capacity Market 2018/19 Delivery Year. It covers the period from 1 April 2018 to 30 September 2019, to include the 2018/19 T-4 Auction Prequalification process ahead of its postponement, and the rescheduled 2018/19 T-1 Auction. This report will only consider financial and reputational incentives that are applicable for the 2018/19 financial year, 1 April 2018 to 31 March 2019. The extension period of this report, up to 30 September 2019, focuses exclusively on the rescheduled 2018/19 T-1 Auction.

We incentivise National Grid Electricity System Operator’s (NGESO’s) performance in its role as the Electricity Market Reform Delivery Body through financial and reputational measures. We set out in the report their performance against the relevant incentives stipulated within NGESO’s Electricity Transmission Licence Special Conditions 4L.