The reforms will improve the system used to secure reliable sources of electricity capacity, tackle decades of underinvestment and safeguard the future security of our energy supply for generations to come.

Tougher action will be taken on companies which go back on their Capacity Market contracts, locking industry in to the deals they commit to, which will be brought forward one year to help give both customers and the energy industry greater peace of mind for the winter.

“The Capacity Market has driven down costs and secured energy at the lowest possible price for bill-payers, but I’m taking further action to tackle the legacy of under-investment and ensure our country’s long-term energy security,” said Amber Rudd, Energy and Climate Change secretary.

The Capacity Market will improve the system used to secure reliable sources of electricity capacity, tackle decades of underinvestment and safeguard the future security of our energy supply for generations to come.