The SEM Committee is today, 03 July 2023, publishing a detailed response paper following on from the high-level decision, contained in SEM-23-038, to apply indexation to capacity payments for multiyear new capacity awarded in the 2024/25 T-3 and 2025/26 T-4 auctions.
This detailed response paper summarises non-confidential responses received to the Calls for Evidence and Consultation and sets out a more detailed explanation for its decision.
The paper also provides further clarity that whilst indexation will normally be applied based on the calculated change in the relevant indices during the full Build Period, impacted market participants will have the option for indexation to be based on a period ending at Substantial Financial Completion, rather than on the day prior to the start of the first Capacity Year.
Link to Indexation of Capacity Payments Detailed Response Paper
Link to consultation responses