Jurisdiction: Great Britain
Commencement: 14th February 2025
Amends: Energy Act 2013 (2013 c.32)
Mini Summary
The Energy Act 2013 (2013 c.32) sets out the legislative framework that the Government will make Regulations from in the coming years to ensure that the UK will generate enough secure, affordable and low-carbon energy to meet increasing demand. As well as cost and capacity issues, these forthcoming policies also consider the UK’s Climate Change Act 2008 commitments and legally-binding EU renewables targets. The Act introduces Contract for Difference, a key part of the Electricity Market Reform (EMR) programme.
Duties
Various duties apply and are available to view on the Legislation Update Service.
Amendment
Technical changes are made to The Electricity Capacity Regulations 2014 for auctions of capacity market units (CMUs)* scheduled for 2026 in Great Britain.
*CMUs are units of electricity generation capacity or electricity demand reduction that can be auctioned for payment.
Changes are also made to:
- allow 9 year agreements for CMUs that meet the requirements to be a ‘declared low carbon CMU’; and
- clarify that generating stations entered into contracts for difference under the Energy Act 2013 are prohibited from being prequalified to bid for capacity agreements.
This amendment has no direct relevance to environmental matters.