UK Energy Bill – DECC publishes information and proposals
The UK Energy Bill contains specific provisions which, when it is enacted, will enable the Secretary of State to give effect to various initiatives to address investments in the UK energy market. On 27 June 2013, the Government's Department of Energy and Climate Change (DECC) published various information and proposals in this regard:
- Detailed information on the contract allocation process for Final Investment Decision (FID) for Renewables. FID is an "interim" programme designed to avoid a hiatus in investment in low carbon generation during changes to the market under Electricity Market Reform (EMR) ahead of the implementation of Contracts for Difference (CfD);
- Detailed proposals for how the Capacity Market should work. The proposed Capacity Market is designed to ensure security of electricity supply in an energy system where many older power plants are closing and the investment case for reliable capacity is increasingly uncertain. The Government plans the first Capacity Market auction in 2014 for delivery of capacity from the winter of 2018/19; and
- Key information on CfDs. This document includes the draft Strike Prices and key CfD terms which will form the basis for the final CfD contracts.