PARLIAMENTARY WRITTEN QUESTION
Electricity Generation: Finance (23 November 2015)

To ask the Secretary of State for Energy and Climate Change, when she plans for the next contracts for difference auction to take place; and whether she plans to make any amendments to how that auction operates from previous such auctions.

Asked by:
Matthew Pennycook (Labour)

As my rt. hon. Friend the Secretary of State announced on the 18^th November 2015, the current intention is to hold the next Contracts for Difference (CfD) allocation round for ‘less established’ technologies in late 2016.

We will announce further plans in relation to the next allocation round in due course.

The auction design for the next round will not change materially. It will be a pay-as-clear auction with ‘less established’ technologies competing for a set budget. Further information will be announced in due course.

Government has also responded to recommendations made by the Energy and Climate Change Committee, and in the recent EMR Evaluation and Competition Market Authority reports. Published responses can be found on the following links:

https://www.gov.uk/government/publications/electricity-market-reform-evaluation

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/444530/50105_Cm_9090_Accessible.pdf

https://www.gov.uk/government/publications/deccs-response-to-the-cma-updated-issues-statement-uis-of-their-investigation-of-the-energy-market.

Answered by:
Andrea Leadsom (Conservative)
30 November 2015