Corporate report: Contracts for Difference and Capacity Market scheme update 2020

This report carries out the government’s obligation under section 5(4) of the Energy Act 2013 to report annually to Parliament on the policy mechanisms implemented under the Electricity Market Reform programme, which closed in 2015.

The key mechanisms are the Contracts for Difference scheme, the Capacity Market and the Electricity Demand Reduction scheme. They are designed to incentivise the investment required in the UK’s energy infrastructure and to deliver low carbon and reliable energy supplies, while minimising costs to consumers.