Capacity Market T-1 auction set for June

A Capacity Market Auction will be held on 11-12 June for delivery year 2019/20, BEIS has announced. Prequalified companies who do not wish to take part have to notify the EMR Delivery Body over the next two weeks.that they will withdraw.

In a letter, secretary of state Greg Clark told National Grid ESO that the auction should take place “as soon as reasonably practicable”.

The decision comes now because new Regulations have come into force. They confirm that Capacity Market participants will receive payments for the period that the Capacity Market is suspended (following a decision by the European Court that the CM does not pass State Aid tests) – if, and when, a new State Aid investigation results in reinstatement. BEIS said ,”We anticipate that State aid approval will be received ahead of the start of the 2019/20 delivery year on 1 October 2019″.

The new Regulations also allow the Settlement Body to hold payments made to it voluntarily by electricity suppliers while the CM is suspended. That is also intended to provide CM parties with comfort, and to limit ‘shocks’ to suppliers – who will have to collect the full outstanding supplier charge from customers over a short period, if and when the CM is reinstated.

The window for Prequalified CMUs to withdraw from the T-1 auction for 2019/20 delivery year opens on Friday 12 April and closes on Thursday 25 April.

Read the letter from BEIS to the Electricity System Operator

Read the new Regulation