ORD005: Electricity Market Reform

Formal title: Electricity Market Reform

As part of the Electricity Market Reform (EMR) program the Government has introduced two new mechanisms: Contracts for Difference (CfD); and the Capacity Market (CM).

CFDs are designed as an incentive for investment in new low-carbon electricity generation. The CM is designed to ensure sufficient and reliable capacity when there is not enough electricity available on the Transmission System.

Changes to the BSC and CSDs

Consequential changes to the BSC and its Code Subsidiary Documents (CSDs) to support the EMR arrangements have been directed by the Secretary of State. Details of the required changes can be found below.

All BSC and CSD changes were laid before Parliament and subsequently, on 1 August 2014, the Secretary of State directed that these changes be made and become effective as follows:

Effective date: 1 August 2014

  • BSC Section C – BSCCo Subsidiaries
  • BSC Section D – BSC Cost Recovery and Participation Charges
  • BSC Section E – BSC Agents
  • BSC Section F – Modification Procedures
  • BSC Section G – Contingencies
  • BSC Section H – General
  • BSC Section K – Classification and Registration of Metering Systems and BM Units
  • BSC Section S – Supplier Volume Allocation
  • BSC Section V – Reporting
  • BSC Section W – Trading Disputes
  • BSC Section X: Annex X-1 – General Glossary
  • BSCP15 – BM Unit Registration
  • BSCP508 – Supplier Volume Allocation Agent
  • BSCP509 – Changes to Market Domain Data
  • NETA Interface Definition and Design: Part 1 – Interfaces with BSC Parties and their Agents

Effective date: 26 February 2015

  • BSC Section L – Metering
  • BSC Section S: Annex S-1 – Performance Levels and Supplier Charges
  • BSC Section W – Trading Disputes

Details of the redlined changes to the BSC and CSDs for EMR can be found below. These were the changes issued for consultation and laid before Parliament.

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