Capacity Market: Proposal regarding locational changes of Capacity Market Units
This consultation is open for responses
Respond to this consultationSummary
DESNZ proposes urgent changes to Capacity Market Rules regarding locational changes of capacity units, requiring rule modifications as soon as possible. The consultation aims to enhance scheme functionality and strengthen delivery assurance. This follows a separate broader consultation on Capacity Market Rules published recently.
Why it matters
This represents parameter adjustment within existing Capacity Market framework rather than structural reform. The emphasis on 'urgent' reform suggests current rules may be inadequate for managing locational changes, potentially creating delivery risks or gaming opportunities that require immediate closure.
Key facts
- •Urgent reform identified requiring immediate rule changes
- •Separate consultation on broader CM changes already published
- •Focus on locational changes of capacity units
Areas affected
Related programmes
Memo
The Capacity Market (CM) is regularly reviewed to ensure it remains fit for purpose, reflects changing market conditions and that the CM Rules ensure effective delivery and encourage participation to create competitive auctions. The government has recently published a [consultation](https://www.gov.uk/government/consultations/capacity-market-proposed-changes-for-prequalification-2026) on proposed changes to the Capacity Market Rules and Regulations. Alongside this, an urgent reform has been identified which requires a change to the Capacity Market Rules as soon as possible. The proposal aims to enhance the functionality of the scheme and strengthen delivery assurance.