Ofgem has agreed that industry members can treat as ‘urgent’ proposals that would allow the industry to continue to collect Capacity Market payments and hold the cash for distribution if and when the Capacity Market receives State Aid clearance from Brussels.
The regulator agreed that the proposal – modification P378 in the Balancing and Settlement Code – could be examined on a short timescale because the hiatus would cause commercial problems for the suppliers who have to make payments. It was also persuaded that P378 should be considered, if possible, in parallel with an alternative option for collecting payments put forward by BEIS, and that it would be best if a decision could be made before the next price cap assessment.
In publishing its agreement, Ofgem also indicated potential support for plans to backdate the measure.
- Sara Bell: Capacity Market failings are substantive
- Capacity Market: two options to resume payments in Q1, BEIS seeks views by 10 January
- What has the Capacity Market ever done for us?
- Tempus Energy chief: Capacity Market auctions will have to be re-run
- Ofgem confirms Capacity Market role for co-located storage – including mobile options
- BEIS confirms T-1 auction in summer 2019 but questions remain over payments
- Drax and Iberdrola, mid acquisition, agree to share £36M Capacity Market payment risk
- Capacity Market ruling: the industry responds