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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

Current rate
0.00100p/kWh
FY20240.0% vs FY2023
Forecast
0.00100p/kWh
20250.0%
Share of bill
0.05 to 0.2%
Of a typical UK business bill
Set by
EMR Settlement Limited (based on DESNZ/NESO auction clearing prices)
Applies to UK business electricity

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 yearRateYoY changeSource
FY20200.00120p/kWh-published
FY20210.00110p/kWh-8.3%published
FY20220.00110p/kWh0.0%published
FY20230.00100p/kWh-9.1%published
FY20240.00100p/kWh0.0%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.

YearP10P50P90ConfidenceRationale
2025-0.00100--
2026-270.001000.001100.00120medBased on EMR Settlement cost trends and demand growth patterns
2026-0.00110--
2027-280.001000.001100.00120medStable rate as demand growth offsets operational cost increases
2027-0.00110--
2028-290.001000.001100.00120medContinued balance between cost inflation and volume growth
2028-0.00110--
2029-300.001000.001100.00120medMaintained equilibrium before regulatory framework changes
2029-0.00110--
2030-310.001100.001200.00130lowAccumulated cost pressures and potential IT infrastructure investments
2030-0.00120--
2031-320.001000.001200.00150lowHighly speculative due to pending post-2030 regulatory frameworks
2031-0.00122--
2032-330.001000.001200.00150lowSpeculative projection contingent on future regulatory arrangements
2032-0.00125--
2033-340.001000.001400.00170lowSpeculative step-change dependent on unconfirmed regulatory changes
2033-0.00127--
2034-350.001000.001300.00160lowTentative 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.

Related charges in Auto-generated

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.