Energy secretary Ed Davey told auction facilitator National Grid of the 4 per cent cut in a letter dated 13 October and published today, confirming a new target capacity for the auction of 48.6GW to be delivered in four years time.
“I would like to confirm that I have adjusted each of the demand curve parameters by 2,200MW. This means that the first four-year ahead auction to be held this year for delivery in 2018/19 the target capacity is now 48,600MW,” Davey said in the letter to National Grid.
Davey said the shift was in line with the recommendation made by the transmission system operator in a report sent to the energy minister 6 October.
“To ensure value for money for the consumer, we have reduced the amount of volume being procured in the auction to reflect this ,” a statement from the Department of Energy and Climate Change said.
“This change means we keep the lights on at the best value for money for bill payers,” a DECC spokesperson added.
A spokeswoman for National Grid declined to comment on the report findings, saying that policy decisions are made by Government alone.