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The Capacity Market

The Capacity Market (CM) is part of the government's Electricity Market Reform package. Flexitricity was the first demand response company to enter this market.

The CM is intended to secure electricity supplies by paying extra for reliable sources of capacity.

The full cost of this will be recovered from Britain's electricity consumers including businesses from October 2016. Flexitricity can turn this cost into revenue.

Flexitricity is the only demand-response company to hold CM contracts for all delivery years. Our demand-response solutions are qualified to work alongside the Capacity Market. We hold headroom, and are allocating it to business consumers and generators on a first-come, first-served basis.

 

Three options for participation

 

T-4 Auction

The main T-4 auction runs annually and buys capacity to be delivered in four years’ time. Flexitricity successfully secured T-4 contracts in the first two auctions, and will repeat this process annually to provide continuity of income.

 

T-1 Auction

These are top-up auctions just ahead of each delivery year, which we will use for sites which aren’t ready to take up our T-4 headroom. Most businesses will want to move into T-4 as soon as possible to take advantage of predictable prices.

 

Early Auction (EA)

This one-off auction, in January 2017, will buy the full national capacity requirement for 2017/18 in a single step. The EA is a windfall for anyone already in the CM, and a great reason for new capacity to join early.

 


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