Electricity Generation

Department for Energy and Climate Change written question – answered on 25th May 2016.

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Photo of Bill Cash Bill Cash Chair, European Scrutiny Committee, Chair, European Scrutiny Committee

To ask the Secretary of State for Energy and Climate Change, what measures she is taking to reassure existing electricity generators that the capacity market is fair and stable.

Photo of Andrea Leadsom Andrea Leadsom The Minister of State, Department of Energy and Climate Change

The Capacity Market design will enable competition between new and existing capacity and between different technologies so that all providers of capacity have the right incentives to make efficient decisions about investment in, and operation of, their assets. We work with all stakeholders to review the Capacity Market continuously to ensure it remains a fair competition and have acted to ensure a level playing field which retains the confidence of bidders and investors.The Rules governing the operation of the Capacity Market mechanism are managed by Ofgem to ensure both a fair and stable process.

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