capacity markets in energy

2010 marks the 20th anniversary of privatisation of the UK energy market and there is fighting talk of radical reform, restructuring and step changes from both Labour and Tory politicians. There is growing sense that it is a time for Big Ideas in the energy sector, but it remains to be seen in the upcoming Conservative energy green paper whether the Tories are prepared to put their money where their mouth is on reform. In a recent interview with the Telegraph, Ed Miliband openly advocated a more interventionist approach to energy policy. Ofgem has also suggested a move toward greater central control, leading to further conjecture that Britain’s liberalised energy market may now be heading in the opposite direction to European markets which are finally beginning to open up. In the same article, Mr Miliband focuses on one such 'big idea'- capacity payments.

Jessica explores this idea further in Utility Week, click here to read more.