Electricity market reform white paper published

The government has added more detail to the four pillars of its proposals for electricity market reform and set out indicative timetables for measures contained in the white paper.

The department of energy and climate change said that policy will be finalised by the end of 2011, with primary legislation to start in 2012, and following secondary legislation, statutory instruments in force by the end of 2014.

The body that will set the contracts for difference should be established ahead of that date, with the first contracts for difference signed around the same time. Decc aims for the capacity mechanism to be in place by the start of 2015, following the carbon floor price in place by spring 2013 and the Emmissions Performance Standard, which the paper said should allow gas plant to be built but discourage coal, in autum 2013.

The government also gave detail on transitional measures for current market arrangements. Existing generation under the Renewables Obligation (RO) will be grandfathered and will be allowed to chose whether to receive the RO or a feed-in tariff (CFD) until the 31 March 2017. After that date, the RO will close to new applications. The RO support for all technologies will be grandfathered at the rate applicable at that cut off date.

Alongside the White paper, Decc published a renewable roadmap, which showed an increased focus on biomass, as well as a final report on its review of Ofgem.

More details here:





Author: Paul Newton,
Channel: Policy & Regulation

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