UK Non-Commodity Charge · Renewables & Capacity
Capacity Market Settlement Levy (Electricity)
Current rates, who sets them, and where they are forecast to go.
What Capacity Market Settlement Levy (Electricity)is, who sets the rate, what the revenue funds, and where it's heading. Sourced daily from the Purely Energy non-commodity cost data hub.
Capacity Market Settlement Levy (Electricity): what it is, who charges it, and what it pays for
What it is
The Capacity Market Settlement Levy (Electricity) 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
Capacity Market Settlement Levy (Electricity) FAQs
What is the Capacity Market Settlement Levy (Electricity) 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 Settlement Levy (Electricity) rate?
The Capacity Market Settlement Levy (Electricity) rate is set by EMR Settlement Limited (based on DESNZ/NESO auction clearing prices).
What does Capacity Market Settlement Levy (Electricity) pay for?
Capacity Market Settlement Levy (Electricity) revenue supports Security of supply, keeping generators available for peak demand.
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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.