Electricity Market Reform Programme

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Electricity Market Reform Programme

Business energy

Electricity Market Reform Programme
Why the need for change?
The Government has introduced new measures to ensure the UK’s future electricity supply
is reliable and will meet our targets for the reduction in carbon emissions whilst minimising
costs for customers. The measures and associated legislation is collectively called
Electricity Market Reform (EMR). EMR includes both new incentive schemes for low
carbon generation and the provision of generating capacity to ensure that the UK
continues to have a reliable supply of power.
The costs of these new measures are to be recovered by new taxes on electricity which have
been introduced by the legislation.
The principle reasons that the Government has introduced these measures are to ensure that the
lights stay on and that electricity will continue to be available as and when needed, and also to
ensure the UK honours its commitments to reduce its carbon emissions. In essence, this means
replacing older power stations with new forms of low carbon generation and ensuring that there is
enough generation capacity to meet national demand on even the coldest days when there is no wind.
The new Electricity Market Reform taxes cover the whole market and all customers, including domestic
and businesses, are affected. Some suppliers may choose to increase prices rather than showing these
new taxes separately however, we have decided to show the costs of the new taxes as we believe
it is more transparent. Going forward, we will continue to review and offer a portfolio of fully
inclusive and non-inclusive products to satisfy the varying needs of our customers.
What happens next?
For consumers of electricity including your
business, there will be additional charges that
will appear on bills from the beginning of May.
We will clarify how these charges will appear
and how much they will be nearer the time.
More information on this will follow as soon
as it is available.