Electricity Market Reform (General) Regulations 2014
Page type: primary-anchored (mirrors The Electricity Market Reform (General) Regulations 2014, SI 2014/2013)
Last updated: 2026-04-05
Source file: ~/knowledge/sources/legislation/uk/si-2014-2013-emr-general.md
What this instrument does
The Electricity Market Reform (General) Regulations 2014 (SI 2014/2013) provide the supporting infrastructure for the CfD regime. Where the Allocation Regulations govern how rounds are run and the Eligible Generator Regulations define who can participate, these General Regulations handle four distinct functions: information extraction for strike price analysis, supply chain oversight, liability protection for the delivery body, and the Secretary of State's power to direct amendments to CfD sustainability obligations.
Made under the Energy Act 2013 (ss.6(1), 12(3), 16, 19, and 63), in force from 1 August 2014.
Part 2: Information cascade (Regs 3-8)
The instrument creates a three-tier information extraction chain for strike price analysis:
-
The Secretary of State issues an "advice notice" to the delivery body (NESO), specifying what information is needed, the deadline, and whether progress reports are required (Reg 4). The notice must be published and the delivery body should be consulted before issuance.
-
The delivery body may issue "counterparty notices" to the CFD counterparty (LCCC), requiring information reasonably needed to comply with the advice notice (Reg 6).
-
The delivery body may issue "generator notices" to generators, requiring capital and operational cost information (Reg 7).
Each tier is enforceable under Electricity Act 1989, s.25. However, the delivery body is excused where it lacks information from the counterparty or generators despite issuing proper notices (Reg 5). The counterparty is similarly excused where it lacks generator information despite reasonable efforts.
Information obtained through generator notices is confidential and may only be used for advice notice purposes, unless the generator consents, a court orders disclosure, or licence conditions or industry codes (BSC, CUSC, Grid Code) require it (Reg 8).
Parts 3, 3A, 3B: Supply chain oversight (Regs 9-14)
Pre-construction assessment
Eligible generators with projects at or above the supply chain threshold (300MW per the Allocation Regulations) may apply to the Secretary of State for a supply chain statement (Reg 9). The Secretary of State assesses whether the project makes a "material contribution to the development and sustainability of supply chains" across five criteria: productivity, innovation, workforce development, infrastructure investment, and sustainability.
The statement is valid for 9 months, or longer if justified (Reg 11). The Secretary of State must respond "as soon as practicable" with either a statement or a refusal with reasons.
Post-construction verification
After construction milestones are met, generator parties may apply for supply chain implementation statements (Regs 12A-12C). A notable deemed approval provision applies: if the Secretary of State does not respond within 60 working days, the application is deemed approved (Reg 12C).
Sustainable industry reward implementation statements (Part 3A, Regs 12D-12F) follow a similar pattern for AR7-AR9 projects with supply chain reward obligations.
All supply chain application information is commercially confidential and may not be disclosed without consent (Reg 13).
Part 4: Liability shield (Reg 15)
NESO, its directors, employees, officers, and agents receive broad protection from damages claims when exercising functions under these Regulations, the Allocation Regulations, or allocation frameworks. This protection has nine carve-outs: bad faith, wilful harm, fraud, breach of the Human Rights Act 1998 s.6(1), breach of Electricity Act 1989 duties, criminal offences, intellectual property infringement, confidentiality breaches, and contract violations.
Part 5: Advice and investment contracts (Regs 16-17)
Ofgem may advise relevant parties on feed-in metering system (FMS) procedures, compliance, and sustainability monitoring (Reg 16).
Transferred investment contracts (legacy EMR transition arrangements) are treated as CFDs for all purposes except EA 2013 ss.10-16 (Reg 17).
Part 6: Sustainability direction powers (Regs 18-19)
The Secretary of State may direct the CFD counterparty to amend sustainability obligations in existing CFDs when standard terms are revised (Reg 18). The direction is limited to the sustainability objective and must specify which amendments apply to which CFDs.
For s.10 directed CFDs (Northern Ireland), the Secretary of State may also direct sustainability amendments (Reg 19), but with a critical constraint: the direction cannot reduce or undermine sustainability obligations. This one-way ratchet prevents ministers from weakening environmental commitments.
All direction notices must be published.
Key thresholds
| Threshold | Value | Regulation |
|---|---|---|
| Supply chain statement validity | 9 months (or longer) | Reg 11 |
| First round application deadline | 10 wd before CFD deadline | Reg 12 |
| Deemed approval for implementation | 60 working days | Reg 12C |
Cross-references
| Instrument | Relationship |
|---|---|
| Energy Act 2013, Chs.2 and 9 Part 2 | Enabling statute |
| CfD (Allocation) Regulations 2014 | Companion SI |
| CfD (Eligible Generator) Regulations 2014 | Definitions import |
| Electricity Act 1989, s.25 | Enforcement mechanism |
| BSC, CUSC, Grid Code | Permitted disclosure |
| Human Rights Act 1998, s.6(1) | Liability carve-out |
Character positions
No character positions captured yet for this instrument.
Debate
No debate entries yet.