Haven Power

Capacity market changes to tackle "unfair advantage" for embedded generation

Capacity market changes to tackle "unfair advantage" for embedded generation


BEIS opened a consultation on Friday 28 October on reforms intended to "simplify and improve accessibility" for future capacity market auctions. The proposals include a plan to change the method by which the scheme's costs are recouped from suppliers so that it is based on gross rather than net demand. The change would, BEIS said, seek to address an "unfair advantage" for embedded generation, including diesel, within the current arrangements; some stakeholders had expressed concern that this generation could gain from a "double payment"??revenue from holding a capacity market agreement and revenue from suppliers benefiting from a reduction in their supplier charge. Responses are invited by 23 December.

BEIS