Electricity Market Reform: Consultation on industry code and licence modifications

Overview

This consultation was carried out by the Department of Energy and Climate Change. In July 2016, the department merged with the Department for Business and Innovation and Skills to form the Department for Business, Energy and Industrial Strategy.

The Government is seeking views on the consequential changes to industry code, licences, industry agreements and other documents required as a result of the implementation of Electricity Market Reform. The documents attached to this consultation document set out drafts of the amendments considered necessary to enable the effective delivery of EMR. This consultation is relevant to electricity generators, electricity suppliers, electricity consumers and their representatives, network operators, Ofgem, the EMR delivery body National Grid, ELEXON, environmental and energy efficiency organisations, electricity service companies, the construction sector, financial institutions and other stakeholders with an interest in the energy sector. DECC invites interested parties to submit comments and evidence.

Why your views matter

These changes are required as a consequence of the provisions set out in the Energy Act 2013, which enables the Secretary of State to enact changes to electricity market to maintain a secure supply of electricity and meet an increasing demand, while meeting ambitious climate change targets.

These modifications will be made in addition to the rules and regulations as set out within the October 2013 consultation on policy proposals for the implementation of EMR. Government have been working with its delivery partners Ofgem, National Grid and ELEXON, along with relevant code administrators to assess which existing licence conditions, industry documents and agreements may need consequential amendments. The drafts of these changes are being published for consultation today.

What happens next

This consultation will run until 12 February, and following its closure Government and its delivery partners will analyse responses and finalise the proposed code and licence modifications. Government intends to publish a response to this consultation alongside the October 2013 EMR consultation response in late spring, and plan for the modifications to come into effect at the same time as the implementing EMR secondary legislation in the summer.