Summary and Background Part 2: Electricity Market Reform Chapter 1: General considerations
7.This Chapter sets out the objectives of Electricity Market Reform (“EMR”) that the Secretary of State will have regard to when carrying out the key EMR functions (contracts for difference, the capacity market and related functions within Part 2 of the Act).
8.The EMR objectives to which the Secretary of State will have regard are: the carbon reduction targets as set out in the Climate Change Act 2008, which include a 34% reduction by 2020 and 80% reduction by 2050; the decarbonisation target range duty in Part 1 of the Act (which applies when a target range has been set); the need to ensure a security of electricity supply (including through diversification of our energy mix); the cost to consumers; and the legally binding EU targets for 15% of United Kingdom energy to be supplied from renewable sources by 2020.
9.This Chapter also imposes a duty on the Secretary of State to lay before Parliament each year a report setting out how the Secretary of State has carried out his or her functions under Part 2.