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Capacity Mechanism Review: Could Do Better

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September 4, 2018
Neil Cornelius
BRG Energy Brief

The UK Government has released a consultation paper requesting feedback on the capacity mechanism (CM) and whether this continues to be an appropriate approach to ensuring security of electricity supply in the GB market. The consultation includes multiple groups of questions, but the overarching lines of enquiry are summarised as:

  • Is the CM still needed in the future?
  • To what extent has the CM achieved its objectives?
  • Do the objectives of the CM remain appropriate?
  • Can the CM’s objectives be achieved in the future in a way that imposes less regulation?

This note provides initial comments on these points and highlights fundamental questions that we believe should be addressed as part of the review, including areas where we feel that wider issues should be considered.

Read the brief.

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