Regulator launches Capacity Market consultation

Ofgem has launched a consultation on proposals to change a number of rules around the operation of the Capacity Market.

It is seeking views on 13 rule change proposals across areas including alignment of metering test processes and simplifying reporting and monitoring provisions.

The deadline for responses is 24 May and the changes are expected to apply from the opening of the 2026 Capacity Market prequalification round.

Last month the latest T-4 Capacity Market auction results saw clearing prices continue their downward trend.

Results for delivery year 2029/30 saw 40.1 GW of capacity awarded at £27.10 per kW a year – less than half last year’s figure - with gas accounting for more than half. The T-1 auction for the 2026/2027 winter period secured 7.2 GW of capacity including around 577 MW of battery storage at a price of £5 per kilowatt (KW) per year.