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Changes to the Capacity Market Settlement Costs Levy

22
Mar
2016

The Energy Desk brings news of changes to the Capacity Market Settlement Costs, which could mean an extra monthly charge depending on your contract type.

In 2015 the Electricity Market Reform (EMR) was introduced which is part of the Government’s plans to ensure future energy supply for the UK will meet global targets to reduce carbon emissions without it costing too much money for customers. Part of the costs of the EMR include the Capacity Market (CM) Settlement Costs Levy, which is essentially an admin cost to cover the running of the EMR and has previously been absorbed by the energy supplier.

The charge is in place to recover the administration costs of running the CM such as the costs of the Electricity Settlements Company (ESC). From April, it will be introduced as a monthly charge to some customers for the financial year (April-March) and is determined by market sharing periods of high demand (4pm-7pm on working days November-February).

What does this mean for customers?

The charge will be based on an estimate of winter working days usage between 4pm and 7pm for half hourly customers and charged in line with their usage which will be collected over 12 month instalments. There will be a reconciliation charge at the end of the year based on actual usage. Non-half hourly customers will see the charge reflected in the EMR Levy Rate.

Contact The Energy Desk for more information

For more information on how the changes to the Capacity Market Settlement could affect you, get in touch with TED today. We can provide advice and help you understand the changes and what they mean for you.  You can call a member of our friendly team on 0845 838 9830 or we will get in touch when you leave your details, visit our contact us page.

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Changes to the Capacity Market Settlement Costs Levy
2016-03-22T09:51:56+00:00
The Energy Desk