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Proposals for implementation of Electricity Market Reform

Setting out implementation proposals for key mechanisms for reform.

Last fetched 03 May 2026 · gov.uk
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Supply Chain Plan consultation - an addendum to this consultation was published on 23 November 2013.

The consultation sets out implementation proposals for the key mechanisms for reform: the Contracts for Difference (CfDs) and Capacity Mechanism, as well as their associated institutional and transitional arrangements. It also seeks views on implementation of measures to manage any potential conflicts of interest for National Grid as the EMR delivery body.

DECC is seeking input from as wide a range of interested parties as possible and the consultation includes a series of broad questions to help shape contributions from interested parties. Following the closure of the consultation, we will consider responses and prepare amendments to the secondary regulations. We aim to publish the government response and to lay the final regulations in Parliament in spring 2014, and for the regulations to become law in Summer 2014.

Implementing Electricity Market Reform (EMR)

The publication Implementing Electricity Market Reform (EMR) intends to provide stakeholders with a comprehensive overview of EMR policy at a point where the implementing secondary legislation is laid before Parliament. The document includes chapters on the two main mechanisms that the government is introducing to reform the electricity market: Contracts for Difference (CFDs) and the Capacity Market, as well as detail on measures to encourage greater energy efficiency through the Electricity Demand Reduction (EDR) programme.

Documents
Electricity Market Reform: consultation on proposals for implementationapplication/pdfSupply Chain Plan Consultation: addendum to Electricity Market Reform - consultation on proposals for implementationapplication/pdfImpact Assessment of measures to address potential conflicts of interest arising in relation to the choice of National Grid as the delivery body for EMRIAapplication/pdfImpact Assessment: Contracts for Differenceapplication/pdfAnnex D: eligibility criteriaapplication/vnd.openxmlformats-officedocument.spreadsheetml.sheetImpact Assessment: Supplier Obligation – Contracts for Differenceapplication/pdfImpact Assessment: Capacity Marketapplication/pdfImpact of EMR on Interconnectionapplication/pdfCapacity Market Gaming and Consistency Assessmentapplication/pdfEstimating the costs and benefits of the Capacity Marketapplication/pdfCatalogue of consultation questionsapplication/pdfThe Contracts for Difference (Allocation) Regulations 2014application/pdfThe Contracts for Difference (Supplier Obligation) Regulationsapplication/pdfThe Electricity Capacity (Payment) Regulations 2014application/pdfThe Electricity Capacity Regulations 2014application/pdfCapacity Market Rules: consultation draftapplication/pdfModifications to National Grid Licence: special condition N of NGET transmission licence (to manage conflicts of interest between the EMR delivery role and National Grid's commercial interests)application/pdfAnnex B: background on supporting and transitional policy arrangementsapplication/pdfResponse formapplication/vnd.openxmlformats-officedocument.wordprocessingml.documentGovernment response to consultation on proposals for implementation of Electricity Market Reformapplication/pdfImpact Assessment on the Capacity Market (September 2014)application/pdfImpact Assessment on CfD Secondary Legislation (June 2014)application/pdfImpact Assessment on Supplier Obligation (June 2014)application/pdfAnalysis of Contract for Difference Supplier Obligation funding options: Redpoint report (23 June 2014)application/pdfImpact Assessment on the Capacity Market (June 2014)application/pdf