UK Non-Commodity Charge · Auto-generated
Capacity Market Operational Levy
Current rates, who sets them, and where they are forecast to go.
What Capacity Market Operational Levyis, who sets the rate, what the revenue funds, and where it's heading. Sourced daily from the Purely Energy non-commodity cost data hub.
Roughly 0.05 to 0.2% of a typical UK business electricity bill
Capacity Market Operational Levy: what it is, who charges it, and what it pays for
What it is
The Capacity Market Operational Levy charge in plain English
Pays power stations and demand-side response to be available during winter peaks. Ensures the lights stay on during cold snaps. Based on T-4/T-1 auction clearing prices.
Introduced 2014 (Energy Act 2013). T-4 auctions run 4 years ahead.
Who charges it
The body that sets the rate
EMR Settlement Limited (based on DESNZ/NESO auction clearing prices)
Unit
p/kWh
Applies to
UK business electricity
What it pays for
Where the revenue ends up
Security of supply, keeping generators available for peak demand
Share of typical bill
0.05 to 0.2%
EMR Settlement publishes Capacity Market operational costs. The OL is a small fraction of bill (0.05 to 0.2%), distinct from the supplier obligation.
Published rate history
| Financial year | Rate | YoY change | Source |
|---|---|---|---|
| FY2020 | 0.00120p/kWh | - | published |
| FY2021 | 0.00110p/kWh | -8.3% | published |
| FY2022 | 0.00110p/kWh | 0.0% | published |
| FY2023 | 0.00100p/kWh | -9.1% | published |
| FY2024 | 0.00100p/kWh | 0.0% | published |
Forecast trajectory
AI-assisted forecasts from our deep-research pipeline. 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 | - | - | |
| 2026-27 | 0.00100 | 0.00110 | 0.00120 | med | Based on EMR Settlement cost trends and demand growth patterns |
| 2026 | - | 0.00110 | - | - | |
| 2027-28 | 0.00100 | 0.00110 | 0.00120 | med | Stable rate as demand growth offsets operational cost increases |
| 2027 | - | 0.00110 | - | - | |
| 2028-29 | 0.00100 | 0.00110 | 0.00120 | med | Continued balance between cost inflation and volume growth |
| 2028 | - | 0.00110 | - | - | |
| 2029-30 | 0.00100 | 0.00110 | 0.00120 | med | Maintained equilibrium before regulatory framework changes |
| 2029 | - | 0.00110 | - | - | |
| 2030-31 | 0.00110 | 0.00120 | 0.00130 | low | Accumulated cost pressures and potential IT infrastructure investments |
| 2030 | - | 0.00120 | - | - | |
| 2031-32 | 0.00100 | 0.00120 | 0.00150 | low | Highly speculative due to pending post-2030 regulatory frameworks |
| 2031 | - | 0.00122 | - | - | |
| 2032-33 | 0.00100 | 0.00120 | 0.00150 | low | Speculative projection contingent on future regulatory arrangements |
| 2032 | - | 0.00125 | - | - | |
| 2033-34 | 0.00100 | 0.00140 | 0.00170 | low | Speculative step-change dependent on unconfirmed regulatory changes |
| 2033 | - | 0.00127 | - | - | |
| 2034-35 | 0.00100 | 0.00130 | 0.00160 | low | Tentative moderation subject to future regulatory developments |
| 2034 | - | 0.00130 | - | - |
Capacity Market Operational Levy FAQs
What is the Capacity Market Operational Levy charge?
Pays power stations and demand-side response to be available during winter peaks. Ensures the lights stay on during cold snaps. Based on T-4/T-1 auction clearing prices.
Who sets the Capacity Market Operational Levy rate?
The Capacity Market Operational Levy rate is set by EMR Settlement Limited (based on DESNZ/NESO auction clearing prices).
What does Capacity Market Operational Levy pay for?
Capacity Market Operational Levy revenue supports Security of supply, keeping generators available for peak demand.
What is the current Capacity Market Operational Levy rate?
For financial year 2024, the published Capacity Market Operational Levy rate is 0.00100 p/kWh.
What is the Capacity Market Operational Levy forecast?
Our latest forecast for 2025 is 0.00100 p/kWh.
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Rate data sourced 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 AI-generated from published guidance and market trends; treat P50 as a central estimate and reference P10/P90 for sensitivity.