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Capacity Mechanism sees T-1 price collapse

The T-1 Capacity Market auction, securing 3626.196MW of ‘top up’ supply for the coming winter, cleared at a price of 77p per kW per year.

Market participants are still waiting to hear whether the CM will be back in operation for the winter period, as the result of a European Commission investigation into whether the CM breaches State Aid rules is not expected until after the summer. Meanwhile suppliers have a ‘voluntary’ mechanism for collecting CM payments from consumers, which will become due immediately any State Aid clearance is granted.

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