Commons Sense

House of Commons · Written Ministerial Statement

Publication of Government Response to the consultation on Capacity Market: proposals to modernise Rules and improve participation and delivery assurance of consumer-led flexibility

02 June 2025 · Department for Energy Security and Net Zero

Proposed by Michael Shanks Lab Rutherglen

Energy

Summarised by AI from the official record, so it can contain mistakes.

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At a glance

Key points

  • Government responds to consultation on modernising Capacity Market rules to enhance consumer-led flexibility and delivery assurance.
  • Proposed changes include updates to Demand Side Response participation and introduction of termination fees for non-compliant units.
  • Outdated transitional rules will be removed and prequalification data use extended to improve competitiveness and value for money.

Issue summary

The statement addresses the government's response to a consultation on improving the Capacity Market rules, focusing on enhancing participation by consumer-led flexibility and ensuring delivery assurance.

Action requested

The government intends to proceed with all proposed changes from the consultation, including updates to Demand Side Response participation, introduction of termination fees for non-compliant units, rule clarifications for Opt-out status changes, removal of outdated transitional rules, and extension of prequalification data use. These changes aim to increase competitiveness and value for money in future Capacity Market Auctions.

Key facts

  • The publication responds to a government consultation on improving the Capacity Market Rules.
  • Funding through the Capacity Market incentivises investment in new capacity, interconnectors, batteries, and consumer-led flexibility.
  • Changes include streamlining participation of consumer-led flexibility, introducing termination fees for non-compliant Demand Side Response units, and rule clarifications to improve accessibility.
  • The government intends to introduce these changes prior to the 2025 prequalification period for the next Capacity Market Auctions.
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