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Issue 888 | Capacity Market update: Ofgem’s decision to reject P378 Introduction of a CM Supplier Interim Charge, and EC Opening of Formal Investigation into the State Aid Compliance of the GB Capacity Market

Issue 888 | Capacity Market update: Ofgem’s decision to reject P378 Introduction of a CM Supplier Interim Charge, and EC Opening of Formal Investigation into the State Aid Compliance of the GB Capacity Market

Steven Britton Steven Britton Senior Analyst

Capacity Market update: Ofgem’s decision to reject P378 Introduction of a CM Supplier Interim Charge, and EC Opening of Formal Investigation into the State Aid Compliance of the GB Capacity Market 22 February 2019 Headline Assessment 1 Assessment & recommendation The regulator’s decision to not allow BSC mechanisms for the collection of Capacity Market charges from consumers leaves only the government as the appropriate authority able to change rules to permit retrospective collection of scheme costs to avoid potential future price shocks. The European Commission will commence a review of aspects of granting of State Aid in 2015 to the ...

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