“It is very wasteful to be subsidising nuclear power stations to stay open in four years’ time when they would almost certainly do so anyway. New technologies to manage demand at peak times offer the potential to reduce costs to billpayers but cannot properly compete due to the bias in the scheme towards large power stations. The Capacity Market needs fundamental reform if the lights are to be kept on at reasonable cost to households and businesses.”
The government insists the CM is the principal existing security of supply tool, driving down costs and securing energy at the lowest possible price for billpayers.
A DECC spokesperson said: “We are clear that providing a secure supply of affordable energy for our families and businesses is non-negotiable. That is why we recently announced reforms to the Capacity Market so we buy more and buy earlier – helping us bring forward new capacity so we create an infrastructure fit for the 21st century.”