News story: Securing future electricity supply

By HM Government

The second Capacity Market auction has successfully concluded, securing electricity generating capacity for 2019/20. The auction attracted enough bidders to secure the capacity needed at a competitive price for consumers. The amount secured – enough to provide almost all the capacity we need – cleared at a price of £18/kW, over £1 cheaper than last year. Buying capacity four years ahead of the delivery year maximises the range of participants that can compete in the auction, thereby promoting competition.

Energy Minister Andrea Leadsom said:

“Our number one priority is to ensure that hardworking families and businesses have access to secure, affordable energy supplies they can rely on.

“This result represents a good deal for customers – fierce competition in the Capacity Market has driven down costs, meaning future capacity has been secured the lowest price possible.”

Notes to Editors

  • The auction secured 46.354GW at a price of £18/kW.
  • Within 2 working days of the Capacity Market closing, the Auction Monitor must report to the Secretary of State on whether the procedures in the Rules and Action Guidelines have been properly followed.
  • The Secretary of State decides whether the auction results should stand based on the Auction Monitor’s report. Unless instructed otherwise by the Secretary of State, National Grid will then make public the Final Auction Results within eight working days of the Capacity Auction concluding.
  • National Grid will then issue capacity agreement notices to those awarded a Capacity agreement within 20 working days of the auction results day.
  • The government has already consulted on how to improve the Capacity Market (the consultation closed on 10 December), and after this year’s auction will reflect on the results of the first two auctions to check the framework still commands the confidence of industry and investors to deliver world class energy security and investment in new capacity.

Source:: News story: Securing future electricity supply