This page provides full details of the proposed change, relevant dates and decisions.

What is the issue?

Rule 4.4.4 was identified as a high priority area for change by CMAG Members. CMAG Members highlighted that Rule 4.4.4 is unclear as to what is considered ‘configuration’ and therefore it is not understood what changes a Capacity Provider can make to the Generating Units that comprise their Capacity Market Unit (CMU) to ensure delivery. Rule 4.4.4 was further identified as a possible barrier to net zero, as older plants cannot change Generating Units within their CMU to adopt new, low carbon technologies on site.

This is viewed as a larger issue for storage CMUs, which may need to change their configuration over time to account for battery degradation. A CMAG Member also noted Rule 4.4.4 has a particularly severe impact when aggregating small generating units; in the event that a single generating unit becomes unavailable, the whole CMU may be terminated as a result.

What is the proposed solution?

To amend Rule 4.4.4 to allow a CMU to change its configuration after prequalification, so long as it does not lower its derated capacity, and continues to meet its Auction Acquired Capacity Obligation (AACO).

Status
Title Decoration

Diagram of CMAG Rule Change Proposal stages: Submission, Scheduled, CMAG development, Consultation, With Ofgem, Implemented.

With Ofgem phase

This is the stage after consultation and after the CMAG has sent a recommendation to Ofgem but before Ofgem has determined whether to approve/reject/send back a CM Rules change.

Proposer: CMAG Type of change: Amendment Date Raised: 18 July 2023 Category: Assurance

Next Steps
Title Decoration

Milestone Date
Proposal Form Submission 18 July 2023
CMAG Initial Consideration Meeting 9 (20 June 2023)
CMAG Development Meeting 10 (18 July 2023)
Meeting 11 (15 August 2023)
Meeting 12 (21 September 2023)
CMAG Recommendation to Ofgem 24 January 2024
Ofgem Statutory Consultation TBC
Implementation TBC

Impacts and Related Changes
Title Decoration

Impacts

Capacity Market Rules Sections

  • Rule 4.4.4 – Configuration of Generating Units
  • Rule 6.10 – Termination Events

Impacted Parties

  • Capacity Providers

Related Changes

None

Contact information
Title Decoration

Lead Analyst:
Amy Stackhouse, Change Lead: Capacity Markets
[email protected], 020 7380 4221