Capacity Market: Rule Amendments to support Auction Liquidity
This consultation is open for responses
Respond to this consultationSummary
DESNZ proposes rule changes to prevent emissions verification deadlines from reducing Capacity Market auction liquidity. The changes include conditional deadline extensions for generators required to submit verified emissions declarations at prequalification. This addresses administrative bottlenecks that could force viable capacity out of auctions due to paperwork delays rather than economic merit.
Why it matters
This is process improvement rather than market reform — fixing an administrative problem that creates artificial scarcity in capacity auctions. As such, it maintains the existing market structure while removing a bureaucratic constraint that reduces competition.
Key facts
- •Consultation published 2024-04-08
- •Addresses emissions verification process bottlenecks
- •Proposes conditional deadline extensions for prequalification submissions
Areas affected
Related programmes
Memo
This consultation seeks views on proposals designed to tackle potential risks which have been identified since the commencement of Capacity Market emissions verifications. This is to ensure auction liquidity is not needlessly adversely affected by the verification process. The consultation includes a proposal to introduce a conditional deadline extension for CM applicants which are required to submit a verified emissions declaration at prequalification, as well as other amendments and improvements to ensure the functionality of the verification process. Read the [consultation document on GOV.UK](https://www.gov.uk/government/consultations/capacity-market-rule-amendments-to-support-auction-liquidity).