Electricity Market Reform (EMR) Delivery Body

Welcome to Electricity Market Reform Delivery Body (EMR DB), we are a central component of the UK’s Electricity Market Reform. The Energy Act 2013 initiated the Delivery Body to ensure a secure, reliable and affordable electricity supply while moving towards a low-carbon energy future. We are responsible for administering two key mechanisms designed to tackle the challenges of decarbonisation and energy security: the Capacity Market (CM) and Contracts for Difference (CfD).

Our responsibilities in the Capacity Market:

Running the Capacity Market: We conduct competitive auctions to secure electricity capacity from providers. These auctions enable us to ensure that enough power generation and demand side response capacity is available to meet future electricity needs. Key administrative elements include: Registration of Participants, the Prequalification Process and Running the Auction.
Agreement Management: We manage the capacity agreements awarded through the auctions, ensuring that successful bidders are ready and able to deliver capacity when required.
Monitoring and Enforcement: We oversee the performance of capacity providers to ensure they meet their commitments to be available during system stress events.
Ensuring Market Efficiency: By securing capacity at the lowest cost through the auction process, we help reduce costs for consumers should there be a system stress event.

Our responsibilities in the CfD Scheme:

Application Assessment and Qualification: The EMR Delivery Body is responsible for reviewing and assessing applications for CfD contracts. We ensure that all applicants meet the required criteria and qualifications, and we notify them of the decision regarding their application. In cases where disputes arise from qualification decisions, we manage the resolution process.
Determination of Auction Requirement: Following the assessment of applications, we evaluate whether an auction is necessary to allocate CfD agreements. If the total capacity requested by qualified applicants exceeds the available capacity, an auction will be conducted to ensure competitive bidding
Running the CfD Auction: When required, we administer the CfD auction process, ensuring it runs smoothly and fairly. The auction determines which applicants will be awarded CfD agreements based on their bid prices, ensuring the lowest cost to consumers. 
Valuation Reporting: After the auction, a report on the valuation of applicants is submitted to the Department for Energy Security and Net Zero. This report informs the government of the outcomes and enables them to take further steps in awarding contracts. 
Reporting and Documentation: We produce and submit all necessary reports required by the Department for Energy Security and Net Zero, ensuring full transparency throughout the allocation process. 
Providing Contract Information to LCCC: Upon conclusion of the allocation process, we provide the Low Carbon Contracts Company (LCCC) with all necessary information to offer Contracts for Difference agreements to successful applicants. This step formalises the awarding of CfDs and allows generators to proceed with their projects.

Capacity Market

The Capacity Market (CM) is a critical mechanism within the Electricity Market Reform programme that ensures the UK has sufficient capacity to meet future electricity demand.

Capacity Market Portal

Here you can find updates on the EMR Capacity Market Portal. A new EMR Portal was implemented for the Capacity Market in June 2024

Contracts for Difference (CfD)

The Contracts for Difference (CfD) scheme is a key mechanism within the UK's energy strategy, aimed at incentivising investment in low-carbon electricity generation for consumers.