Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

EMR definition

What does EMR mean? In practice, EMR (Electricity Market Reform) describes the Great Britain package of electricity market changes developed from the July 2011 white paper and implemented mainly through the Energy Act 2013 and secondary legislation. It is not a single statutory term, but a widely used descriptor for four core measures: - contracts for difference (CfDs): long‑term private law contracts with the Low Carbon Contracts Company under which generators are paid the difference between a “strike price” and a market reference price. Allocation Rounds are run with National Grid Electricity System Operator as Delivery Body. - Capacity Market: competitive T‑4/T‑1 auctions securing...

Electricity Market Reform in Great Britain: legislative framework and key mechanisms—CfDs, Capacity Market, Emissions Performance Standard and Offtaker of Last Resort

Published by a LexisNexis Energy expert

Practice notes

For fuller analysis of regulation, consenting and incentives for the net zero energy shift within the law of England and Wales, see also: Collinson and Hockman on Energy Law: Regulating, Consenting and Incentivising the Energy Transition. That volume offers detailed treatment of matters explored in this Practice Note.

What is the background to ?

In 2010, the UK government concluded that meeting national energy requirements by 2020 would demand investment of up to £110bn. This assessment arose amid rising consumption and the retirement of power stations owing either to age-related obsolescence or to compliance with EU‑derived emission reduction obligations. Renewable output, expanded significantly in recent years to advance the UK’s net zero goals, brings the difficulty of intermittency, as it depends heavily on weather and therefore cannot deliver dependable baseload in the manner of conventional plant. In addition, the country’s electricity networks were not conceived for large‑scale renewable penetration and required optimisation. The government also expressed unease that electricity suppliers’ funding of renewable generation subsidies, for example under the renewables obligation (RO), was in the end borne by consumers. Yet, unlike conventional stations, such technologies are weather‑led and output fluctuates markedly over time. That challenge persisted within the prevailing system design...

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Web page updated on 21/05/2026

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