The Capacity Market (CM) is designed to ensure that there is sufficient investment in the overall level of reliable capacity necessary to provide secure electricity supply. The CM works by giving capacity providers a regular retainer in return for such providers agreeing to provide capacity when the system is under stress, as an insurance policy against future black outs. For an overview of the key features of the CM, see Practice Note: Capacity Market—key features. The CM is one of the key mechanisms used by the government to introduce electricity market reform (EMR) (see Practice Note: Electricity Market Reform (EMR)). The other key mechanism introduced through EMR is the Contracts for Difference revenue support regime for low carbon generation projects, see Practice Note: Contracts for Difference (CfD)—key features for more details. This CM tracker sets out in reverse chronological order (ie most recent first) key developments in relation to the CM since February 2015, covering all closed consultations, regulatory guidance publications and key amendments to the CM legislation and the Capacity Market Rules. For a dedicated Practice Note exclusively on the Capacity Market

The Capacity Market Rules The Capacity Market (CM) was implemented pursuant to powers in the Energy Act 2013 (EA 2013) to ensure there is sufficient commitment/investment by the private sector in providing reliable electricity capacity, so as to ensure ongoing sufficient electricity supplies in Great Britain. The primary implementing legislation of the CM is the Electricity Capacity Regulations 2014 (Capacity Regulations), SI 2014/2043 (as amended). However, in addition to the Capacity Regulations, EA 2013, s 34: • provides government (by way of the Secretary of State) with the power to make and amend ‘Capacity Market

What is the Capacity Market? The Capacity Market (CM) is one aspect of the government’s Electricity Market Reform (EMR) programme. It is a legislative mechanism which aims to encourage the provision of reliable electricity capacity, to avoid shortfalls in available electricity. This Practice Note focuses on the processes through which CM support is awarded. For: • a detailed overview of the CM regime more broadly, see Practice Note: Capacity Market—key features • detailed information on ‘Capacity Market Agreements’ (the rights and obligations which apply once CM support has been awarded) see Practice Note: Capacity Agreements and the rights and obligations of those who win Capacity Market support • information and background on EMR more generally, see Practice Note: Electricity Market Reform (EMR) As set out in more detail in Practice Note: Capacity Market—key features, the key legislation and rules which underpin the CM mechanism are the: • Electricity Capacity Regulations 2014, SI 2014/2043, as amended (the Capacity Regulations) • Capacity Market Rules (CM Rules), issued pursuant to powers in the

Energy analysis: We explore the legal basis and consequences of annulment of State aid clearance for the Capacity Market mechanism, following the General Court’s 15 November 2018 judgment in respect of Case T-793/14 Tempus Energy Ltd and Tempus Energy Technology Ltd v Commission.

Note that additional commentary on the issues discussed in this Practice Note in the context of the regulation, consenting and incentivisation of the net zero energy transition is available in the following textbook that we have published: Collinson and Hockman on Energy Law: Regulating, Consenting and Incentivising the Energy Transition. What is Electricity Market Reform and the Capacity Market? The Capacity Market (CM) is one aspect of the government’s wider Electricity Market Reform (EMR) programme. EMR was designed and implemented with the aim of meeting three competing challenges to the Great Britain (GB) electricity market (often referred to as the energy ‘trilemma’): • the need to intervene in the market to financially encourage development of secure and reliable electricity capacity in the face of the rapid closure of old and obsolete power stations and the increase in inherently unpredictable intermittent renewable generation • the need to continue to intervene in the market to financially encourage development of low carbon and renewable generation, in order to respond to climate change and to meet national legally

Private Client analysis: The vice president of the Court of Protection has given judgment concerning the capacity of a man with alcohol dependence (PB) to make decisions about his residence and care. The care regime amounted to a deprivation of liberty and was intended to restrict PB’s access to alcohol. The judge held that PB did not lack capacity in the relevant domains. His judgment sets out a number of important principles that are applicable generally to cases involving people with drug or alcohol dependence. Written by Peter Mant, barrister at 39 Essex Chambers.

Restructuring & Insolvency analysis: A bankrupt who was now serving a 12-year prison sentence for fraud had made three applications opposing a bankruptcy restriction order. The applications comprised: An application claiming he had impaired mental capacity (‘Capacity Application’); A Disclosure Application; and an application for a stay which was not required by the time of the hearing as the criminal case had already concluded. All applications were dismissed. Written by Andrew Mace, barrister at 9 Stone Buildings.

Private Client analysis: The Court of Protection decides that a young woman with severe anorexia should not be force-fed against her wishes as part of ongoing treatment for life-threatening medical complications arising out of her restricting her caloric intake. It was determined, however, that she did lack capacity to make decisions about her treatment for herself as a result of her anorexia, as her fear of gaining weight was so severe as to override her consistently expressed wish to live and receive life-saving treatment. The judge’s approach illustrates how the court will approach capacity in cases of anorexia and also finely balanced best interests decisions about medical treatment. Written by Katharine Elliot, barrister at Landmark Chambers.

Charging on the basis of the costs of the capacity in the network and switches needed to provide a service.

On 29 January 2026, the Ministry of Housing, Communities and Local Government published a research report, originally commissioned under a previous administration and released for transparency purposes, examining the capacity of local authorities to accelerate the productive re-use, redevelopment and disposal of surplus land and property assets.The report, prepared by Cushman & Wakefield for the then Department for Communities and Local Government in December 2015, is structured in two stages. The first stage reviews the policy and fiscal context and analyses local government finance data to assess the scale, value and distribution of assets recorded as ‘surplus’. The second stage draws on interviews with 16 local authorities to explore why some councils progress surplus assets more quickly than others and to identify practical barriers and potential incentives for acceleration.

This Practice Note considers the capacity of parties to enter into an arbitration agreement and to participate in arbitration proceedings. It is important to remember that an arbitration clause may survive even if the main agreement in which it is found is invalid—see Practice Notes: Arbitration agreements—the doctrine of separability (England and Wales) and Separability of arbitration agreements in international arbitration. From a capacity perspective, this means that a party may not have capacity to enter into the main agreement but may still retain capacity to enter into an agreement to arbitrate. Consequences of incapacity Both parties entering into an agreement should have a legal capacity to do so, absent which the agreement will be void. An agreement to arbitrate is not in any way different in this respect from any other contract—see Practice Note: Forming enforceable contracts—capacity. Should an arbitral agreement be found void by reason of incapacity of either of the parties, either: • the tribunal will decline jurisdiction to hear the case, if the incapacity was established

Private Client analysis: In this case, the court confirmed that capacity to marry is determined on an ‘act’ or ‘status’ specific basis, rather than by reference to the individual that P wishes to marry. The court made this preliminary issue determination as part of ongoing proceedings under the Mental Capacity Act 2005 (MCA 2005), brought by Stockport Metropolitan District Council (‘Stockport’) regarding EKK, a woman in her eighties who expressed a consistent desire to marry ID, her partner of almost ten years. Written by Ellie Mullett, barrister, at 39 Essex Chambers.