UK non-commodity charge · Renewables and capacity · Electricity
Capacity Market settlement costs levy
Latest published rate, who sets it, and where it is forecast to go.
What Capacity Market settlement costs levy is, who sets the rate, what the revenue funds and where it is heading. Rates come from the Purely Energy non-commodity cost data hub; forecasts are our own.
Roughly 0.05 to 0.2% of a typical UK business electricity bill
Capacity Market settlement costs levy: what it is, who charges it, and what it pays for
What it is
The Capacity Market settlement costs levy charge in plain English
Small admin levy covering EMR Settlement’s costs of running Capacity Market auctions and settlements.
Introduced 2014 (Energy Act 2013).
Who charges it
The body that sets the rate
EMR Settlement Limited
Unit
p/kWh
Applies to
All electricity supplies
What it pays for
Where the revenue ends up
EMR Settlement operational costs
Share of typical bill
0.05 to 0.2%
EMR Settlement publishes the Capacity Market settlement costs levy separately from the supplier charge; it is a small fraction of the bill (0.05 to 0.2%).
Published rate history
| Financial year | Rate | Year on year | Source |
|---|---|---|---|
| 2020/21 | 0.00120p/kWh | - | Published |
| 2021/22 | 0.00110p/kWh | -8.3% | Published |
| 2022/23 | 0.00110p/kWh | 0.0% | Published |
| 2023/24 | 0.00100p/kWh | -9.1% | Published |
| 2024/25 | 0.00100p/kWh | 0.0% | Published |
Forecast trajectory
Forecasts from our non-commodity cost model. P10, P50 and P90 are the 10th, 50th and 90th percentile outcomes; P50 is the central estimate.
| Year | P10 | P50 | P90 | Confidence | Rationale |
|---|---|---|---|---|---|
| 2025 | - | 0.00100 | - | - | |
| 2026 | - | 0.00110 | - | - | |
| 2026-27 | 0.00100 | 0.00110 | 0.00120 | med | Based on EMR Settlement cost trends and demand growth patterns |
| 2027 | - | 0.00110 | - | - | |
| 2027-28 | 0.00100 | 0.00110 | 0.00120 | med | Stable rate as demand growth offsets operational cost increases |
| 2028 | - | 0.00110 | - | - | |
| 2028-29 | 0.00100 | 0.00110 | 0.00120 | med | Continued balance between cost inflation and volume growth |
| 2029 | - | 0.00110 | - | - | |
| 2029-30 | 0.00100 | 0.00110 | 0.00120 | med | Maintained equilibrium before regulatory framework changes |
| 2030 | - | 0.00120 | - | - | |
| 2030-31 | 0.00110 | 0.00120 | 0.00130 | low | Accumulated cost pressures and potential IT infrastructure investments |
| 2031 | - | 0.00122 | - | - | |
| 2031-32 | 0.00100 | 0.00120 | 0.00150 | low | Highly speculative due to pending post-2030 regulatory frameworks |
| 2032 | - | 0.00125 | - | - | |
| 2032-33 | 0.00100 | 0.00120 | 0.00150 | low | Speculative projection contingent on future regulatory arrangements |
| 2033 | - | 0.00127 | - | - | |
| 2033-34 | 0.00100 | 0.00140 | 0.00170 | low | Speculative step-change dependent on unconfirmed regulatory changes |
| 2034 | - | 0.00130 | - | - | |
| 2034-35 | 0.00100 | 0.00130 | 0.00160 | low | Tentative moderation subject to future regulatory developments |
Capacity Market settlement costs levy FAQs
What is the Capacity Market settlement costs levy charge?
Small admin levy covering EMR Settlement’s costs of running Capacity Market auctions and settlements.
Who sets the Capacity Market settlement costs levy rate?
The Capacity Market settlement costs levy rate is set by EMR Settlement Limited.
What does Capacity Market settlement costs levy pay for?
Capacity Market settlement costs levy revenue supports EMR Settlement operational costs.
What is the latest published Capacity Market settlement costs levy rate?
For 2024/25, the published Capacity Market settlement costs levy rate is 0.00100 p/kWh.
What is the Capacity Market settlement costs levy forecast?
Our latest forecast for 2025 is 0.00100 p/kWh.
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Rate data from the Purely Energy non-commodity cost data hub (dh.purelyenergy.co.uk). Published rates come from statutory publications by the body listed above; forecasts are modelled from published guidance and market trends, so treat P50 as a central estimate and use P10/P90 for sensitivity. Primary source