Electricity Market Reform

What the latest changes to energy policy mean for large businesses.

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.

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.

The value of EMR: The Capacity Market

We all know that demand for electricity is increasing but nearly half of the UK’s generating capacity is due to retire within 15 years. And much of the new-build low carbon generation is intermittent.

The Capacity Market is designed to encourage generators to invest and then generate electricity, and large users to use less electricity when the network most needs it. It’s one step closer to more active management of demand in the electricity network, ensuring we all have enough affordable electricity when we need it most.

The process is managed through an auction set-up so that the most competitive prices are set. Capacity Providers who are successful in the auction are awarded Capacity Agreements, which confirm their Capacity Market Obligation and the level of Capacity payments that they will be entitled to receive, which are based on the auction clearing price. 

Capacity Market Obligation

Meeting your obligation will involve a requirement for your Half Hourly Data Aggregator (HHDA) to send Settlement data to the EMR Settlement system (EMRS). Your Supplier will be able to facilitate this upon your request.

Get in touch

If you're a qualified Capacity Provider and require Supplier assistance for meeting your Obligation, you can get in touch with us at the I&C D0354 Mailbox.