Capacity Market 2023: Phase 2 proposals and 10 year review

Overview

We're seeking views on the Electricity Capacity Market.

The consultation is in 2 parts:

Part A

This part of the consultation follows the January 2023 consultation and forms Phase 2 of reforms to the Capacity Market, building on the previous consultation and further engagement with stakeholders and industry.

The main policy proposals broadly fall into 2 categories:

• strengthening security of supply 
• accelerating investment in low carbon technologies 

The proposed reforms set out in Part A of this consultation represent the next step in the evolution of the Capacity Market and have been considered in light of the Review of Electricity Market Arrangements (REMA) programme. 

Part B

The Capacity Market Rules and Regulations contain a requirement to carry out a review every 5 years and publish a report. The next full review of the market (the 10-year review) is due to be published by Summer 2024.

This part of the consultation is a call for evidence to help inform this review.

Respondents can choose to answer one or both parts of the consultation.