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The Capacity Market has been introduced by the UK Government as part of the Electricity Market Reform Programme to ensure the future security of our electricity supply. The Capacity Market offers all capacity providers a steady, predictable revenue stream on which they can base their future investments. In return for such revenue, providers must deliver energy at times of system stress or face penalties.

In its role as EMR Delivery Body, NESO is responsible for the coordination and the implementation of the Capacity Market (CM) and Contracts for Difference (CfD) mechanisms.

EMR Settlement Ltd acts as the delivery partner for the Capacity Market on behalf of the UK Government and is responsible for administering metering and settlement process.

The energy regulator’s duties have been extended to manage and make any changes to the Capacity Market Rules following the results of the first auction.

The NESO balances electricity supply and demand in Great Britain in real time. Find out more about our balancing services, connecting to the transmission system, codes, charging, and how we are supporting the smart energy system transformation here.