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legislature › pref label	House of Lords
answer › answering member printed	Baroness Verma
question text	To ask Her Majesty%E2%80%99s Government, in the rules governing capacity market auctions, what measures have been included to guard against undue market dominance by any of the companies bidding in the capacity market mechanism; and whether OFGEM has a role in overseeing fair competition in the mechanism.

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100657

registered interest

date

23/10/2014

answering body

Department for Energy and Climate Change

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answering dept short name

Energy and Climate Change

answering dept sort name

Energy and Climate Change

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Electricity Generation

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25277

	pref label	House of Lords

question text

To ask Her Majesty’s Government, in the rules governing capacity market auctions, what measures have been included to guard against undue market dominance by any of the companies bidding in the capacity market mechanism; and whether OFGEM has a role in overseeing fair competition in the mechanism.

tabling member printed

Baroness Worthington

uin

HL2388

answer

is ministerial correction

date of answer

30/10/2014

answer text

The Capacity Market has been designed to mitigate the risks of gaming. We commissioned expert external advice from Charles River Associates on this issue and implemented the recommendations contained within that report which is available on the DECC website:<a href="https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/252746/CRA_Report_on_the_Capacity_Market_Gaming_Risks.pdf" target="_blank">https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/252746/CRA_Report_on_the_Capacity_Market_Gaming_Risks.pdf</a>.Anti-gaming measures include having in place an auction monitor who will ensure that the rules are properly followed by all participants during the auction. If the auction monitor were to find any irregularities, the Secretary of State ultimately has the ability to annul the auction after it has taken place.Ofgem has the power to investigate any company bidding into the auction should they consider this necessary.

answering member printed

Baroness Verma

question first answered

30/10/2014 16:48:27

answering member

3790

	label	Biography information for Baroness Verma

attachment

1

	file name	CRA_Report_on_the_Capacity_Market_Gaming_Risks.pdf
	title	CRA Report on the Capacity Market Gaming Risks

tabling member

4235

	label	Biography information for Baroness Worthington