Capacity market allowance in the default tariff cap
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The 15 November 2018 judgment of the General Court of the Court of Justice of the European Union had the effect of removing the European Commission’s State Aid approval for the GB CM scheme.
On 1 January 2019, we introduced a price cap for domestic customers on standard variable and default tariffs. The first price cap period (1 January until 31 March 2019) includes an allowance for Capacity Market payments.
This letter outlines our approach to the capacity market calculations in the default tariff cap for the next price cap periods.