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Capacity Market consultation responses

14 May 2026

Proposing MP
Rutherglen
Type
Written Ministerial Statement
Department
Department for Energy Security and Net Zero

At a Glance

Issue Summary

The statement addresses the publication of documents re [2D [K related to the Capacity Market, including responses to recent consultations [13D [K consultations and reforms aimed at ensuring capacity adequacy and reducing [K consumer impact.

Action Requested

The government is publishing responses to Autumn and [3D [K and Winter Consultations and a Call for Evidence on Hydrogen-to-Power and I [1D [K Interconnectors. It will also implement reforms such as raising the excess [K capacity rounding threshold, streamlining reporting for small Demand Side R [1D [K Response components, introducing new DSR technology categorisation, and imp [3D [K improving Capacity Market administration.

Key Facts

  • The Capacity Market was introduced in 2014 to secure suff [4D [K sufficient electricity generation capacity.
  • Funding provided through the [3D [K the market incentivises investment in various technologies.
  • Competitive [K auctions are held four years ahead of their respective delivery years.
  • G [1D [K Government responses include reforms to ensure capacity adequacy and low co [2D [K consumer impact.
  • The excess capacity rounding threshold will be raised f [1D [K from 1GW to 3 GW.
  • Reporting for small Demand Side Response components be [2D [K below 30 kW will be streamlined.
Assessment & feedback
Summary accuracy