Government consults on relaxing Capacity Market rules in response to COVID-19

The government is seeking views on bringing in temporary rules to relax Capacity Market obligations during the COVID-19 pandemic.

In a consultation paper released today, the government said: “The pandemic and measures being taken to delay its spread is likely to impact holders of capacity agreements, including their ability to achieve compliance with the obligations to the set deadlines in some instances. This is in addition to the effects of the recent State aid standstill period being felt by some CM participants.”

The proposed changes aim to reduce burdens on agreement holders as they focus on the immediate impact of COVID-19, and minimise the risk of terminating and imposing termination fees on capacity providers that fail to meet an obligation as a result of the COVID-19 pandemic.

The consultation closes on 30 April. Full details of proposed changes are in the consultation paper.