Commentary on Sections Part 2: Electricity Market Reform Chapter 3: Capacity Market Section 34: Power to make capacity market rules
155.This section confers power on the Secretary of State to make capacity market rules, which may contain any provision that may be made by electricity capacity regulations except for the matters referred to in subsection (2). The matters which may not be included in capacity market rules include, in particular, provision about the circumstances in which, and the amount of capacity for which, a capacity auction is to be held, and provision about the calculation and settlement of payments.
156.By virtue of subsection (3), electricity capacity regulations may confer power to make capacity market rules (which includes power to amend, add to or revoke such rules) on the Authority. Thus, the power in this section enables the capacity market to be implemented partly by means of an instrument which the Authority may be given power to add to or amend in future.
157.If electricity capacity regulations give the Authority power to make capacity market rules, subsection (4) provides that the regulations must include a condition requiring the Authority to consult before exercising the power.
158.Subsection (5) requires such regulations to secure that the Authority must obtain the Secretary of State’s consent on each occasion that it seeks to make capacity market rules which confer functions on itself.
159.Supplementary provisions about capacity market rules are contained in sections 41 and 42.