Capacity Market BSC modification to be treated as ‘urgent’

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.

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