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UK Non-Commodity Charge · Auto-generated

Capacity Market Supplier Obligation

Current rates, who sets them, and where they are forecast to go.

What Capacity Market Supplier Obligationis, 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 2 to 3% of a typical UK business electricity bill

Current rate
0.4500p/kWh
FY2024+18.4% vs FY2023
Forecast
0.5000p/kWh
2025+11.1%
Share of bill
2 to 3%
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 Supplier Obligation: what it is, who charges it, and what it pays for

What it is

The Capacity Market Supplier Obligation 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

2 to 3%

EMR Settlement's Capacity Market supplier-obligation rates put the levy at roughly 2 to 3% of a typical non-domestic electricity bill.

Published rate history

Financial yearRateYoY changeSource
FY20200.1960p/kWh-published
FY20210.2220p/kWh+13.3%published
FY20220.2950p/kWh+32.9%published
FY20230.3800p/kWh+28.8%published
FY20240.4500p/kWh+18.4%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
2025-0.5000--
2026-270.59400.64000.6800highBased on published T-4 auction results and EMR Settlement methodology
2026-0.5400--
2027-280.68000.73000.7800highDirect calculation from known auction results using established cost recovery methods
2027-0.5700--
2028-290.75000.81000.8700highReflects £63/kW/year T-4 auction result with standard allocation methodology
2028-0.5900--
2029-300.80000.88000.9600medAssumes continued thermal retirements and demand growth patterns
2029-0.6100--
2030-310.85000.95001.050medElectrification demand growth with uncertain capacity replacement timing
2030-0.6300--
2031-320.75000.94001.130lowRegulatory uncertainty and potential market design changes post-2030
2031-0.6426--
2032-330.70000.92001.140lowSpeculative given no auction data and policy uncertainty
2032-0.6555--
2033-340.68000.91001.140lowPlaceholder estimate with wide uncertainty bands
2033-0.6686--
2034-350.69000.92001.150lowHighly uncertain given potential fundamental market structure changes
2034-0.6819--

Capacity Market Supplier Obligation FAQs

What is the Capacity Market Supplier Obligation 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 Supplier Obligation rate?

The Capacity Market Supplier Obligation rate is set by EMR Settlement Limited (based on DESNZ/NESO auction clearing prices).

What does Capacity Market Supplier Obligation pay for?

Capacity Market Supplier Obligation revenue supports Security of supply, keeping generators available for peak demand.

What is the current Capacity Market Supplier Obligation rate?

For financial year 2024, the published Capacity Market Supplier Obligation rate is 0.4500 p/kWh.

What is the Capacity Market Supplier Obligation forecast?

Our latest forecast for 2025 is 0.5000 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.