Electricity Market Reform (EMR) in a nutshell

EMR is a major change to the UK’s energy policy to make sure:

  • The UK can generate enough electricity for everyone in the future, as half of existing generation capacity is due to close over the next 15 years
  • The UK can generate more electricity from low carbon sources to meet climate change commitments
  • With all the necessary investment, electricity can remain affordable for UK households and businesses.

It includes four policies:

  1. The Emissions Performance Standard was introduced in 2013. It makes it almost impossible to build high polluting coal and oil power stations in the UK without a means to capture and store the carbon emissions.
  2. The Carbon Price Floor was introduced in 2013. It supplements the EU Emissions Trading Scheme by setting a minimum cost of carbon to help low carbon generators compete against fossil fuel generators. Businesses in some energy intensive sectors can claim compensation against this cost.
  3. The Contracts for Difference scheme was introduced in August 2014. It pays new low carbon generators a long term fixed price for, to attract more long term investment in low carbon electricity generation whilst keeping the price affordable for consumers.
  4. The Capacity Market was introduced in August 2014. It provides regular payments to generators that can keep some of their electricity production capacity on standby, ready to generate at short notice. That will make sure there’s enough affordable electricity when demand is very high.

What this means for your electricity contract with EDF Energy

If you’re an EDF Energy large business customer, how these charges affect your costs depends on the type of contract you’ve signed.

We know nobody likes to have additional costs on their electricity bill. But these are relatively small costs to pay now for a more reliable and affordable low carbon supply of electricity in the future. 

Fixed + Peace of Mind

We won’t add any charges relating to EMR to your existing contracts. When you signed your contract, we said your electricity price was fixed – and we meant it. 

Fixed + Protect

You won’t see any additional costs relating to Contracts for Difference unless they rise 40% above the forecast we made at the beginning of the contract.

Fixed + Reflective

You will have the EMR charges passed through to your bills and see the first charges for Contracts for Difference after April 2015.

Flexible contracts

The new charges will be passed through to your electricity bill from April 2015.

Watch video: Electricity Market Reform

The value of EMR

Watch our video to understand the importance of EMR.