Notice of Decision into whether UK Capacity Reserve Limited (UKCR) complied with the requirements of Rule 5.13.1(b) of the Capacity Market Rules


Publication date

Industry sector

Generation and Wholesale Market

The Authority has decided that UK Capacity Reserve Limited (UKCR) contravened the requirements of Rule 5.13.1(b) of the Capacity Market Rules. This rule is a relevant requirement upon capacity market participants as defined under Section 25, Electricity Act 1989.

The Capacity Market is part of the Government’s reforms intended to ensure sufficient capacity on the system to provide a reliable electricity supply. National Grid will run an annual auction to decide which generators and providers of demand side response will be awarded a capacity agreement, in return for providing capacity at times of system stress. Companies had to submit applications for the first such auction in November 2014 and National Grid awarded the contracts in January 2015.

The Authority has found that UKCR submitted inaccurate information when applying to be part of 2014’s capacity auction. As a result the Authority found UKCR to have contravened a relevant requirement, namely Rule 5.13.1(b) of the Capacity Market Rules in respect of 11 of its generating units. As a result, these generating units have been excluded from submission for capacity auctions taking place in the next two years. UKCR has accepted the Authority’s finding.