Users of this website should read the FAQ disclaimer at the foot of this page. Please click here to access the FAQ disclaimer

What is Electricity Market Reform (EMR)?

The Government’s Electricity Market Reform programme (EMR) is designed to attract the £110 billion investment needed this decade to replace the UK’s ageing energy infrastructure with a more diverse and low-carbon energy mix. EMR is the biggest change to the electricity market since privatisation.

EMR will facilitate this vital investment through the introduction of two new schemes: the “Contract for Difference” (or “CFD”); and the “Capacity Market”.

Disclaimer

These frequently asked questions and responses (“FAQs”) have been prepared by Low Carbon Contracts Company Ltd ("LCCC") in response to queries raised by stakeholders in relation to the content of the Contract for Difference (“CFD”), which is comprised of the CFD Agreement and CFD Standard Terms and Conditions (“Conditions”), as published by the Department of Energy & Climate Change on 29 August 2014. The FAQs are also applicable to Investment Contracts (“ICs”) but users of this website are advised to fully review the equivalent clauses in their ICs as there are differences between the CFD and the IC. These FAQs are subject to and are provided on the basis of the following:
  • The FAQs do not supersede or replace the provisions of the CFD or IC and are not intended to and do not constitute legal, investment, commercial or operational advice and should not be relied upon as such. Users of this website should not place reliance upon these FAQs and should refer to the full terms of the CFD or IC, and/or consult their professional advisors where they require information or advice on matters relating to the CFDs or ICs generally and/or any CFD or IC to which they are a party.
  • The FAQs reflect the current thinking and approach of LCCC and should not be viewed as in any way as binding on LCCC.
  • It is our intention to keep the FAQs under review and to publish revised issues from time to time.
Defined terms used in the FAQs but not defined therein have the meanings prescribed to them in the CFD or IC (as applicable) and the Energy Act 2013.