Haven Power

EMR policies now live

EMR policies now live



Policies which make up Electricity Market Reform (EMR) are now underway, following regulations which came into force on 1 August.
 
As a customer-focused supplier, we are committed to keeping end-users informed as much as possible, to ensure they are aware of what these new initiatives mean for their business and any future cost implications.
 
For further information on EMR, please visit our dedicated EMR page or read the video transcribe below:
 
What does EMR stand for?
 
EMR stands for Electricity Market Reform. EMR is a government programme with two principle objectives. Firstly it's making sure that we decarbonise our electricity supply for environmental reasons. The other big thrust of it is making sure that we have enough generating capacity so that we can keep the lights on.
 
Why is EMR necessary?
 
There are two principle reasons, firstly we want to make sure that the UK can meet its decarbonisation targets, which are important for tackling global warming, and secondly we need to make sure that we have enough generation capacity on our national grid system so that we can keep the lights on at the coldest of times when the wind isn’t blowing. 
 

How will EMR affect customers?

Customers will see very little change; the most important point about EMR is that it will solve our burgeoning capacity problem. It will make sure that we’ve got enough power stations to meet the demand going forward and, in the background, by switching the generation mix from fossil fuels onto more renewable sources we’ll be able to reduce the amount of carbon dioxide emissions from electricity production. 

What is CFD?

CfD stands for Contracts for Difference, it's a new form of subsidising renewable power generators and it’s going to replace something called the RO, or the Renewables Obligation, over the next few years. The difference between the two is that under the CfD mechanism, the generators have to participate in the market properly in order to earn their subsidy. Under the Renewables Obligation, they can get their subsidy without participation within the market to the same extent. 

We have quite a lot of older power stations in the UK, some of which are coal fired. There are some nuclear stations that are nearing the end of their life and because of the growth in renewables, this makes investments in new fossil fuel power stations unattractive. To tackle this and to make sure we have got enough power available, even when renewable power isn’t producing, the government have come up with something called the Capacity Mechanism. This is a way of ensuring that new capacity gets built and old capacity is kept on the system and where it is cost effective and environmentally sensible to do so. 

Haven Complete

At Haven we present a whole range of options for our customers. Some larger customers want to see the costs of EMR fully itemised on their bills, but as we come down the market we find other customers don’t want to see the cost breakdown itemised separately, they want Haven to manage that within our prices, making it simpler; that's why we are launching a new product called Haven Complete.

Haven Complete is the newest product from Haven Power and is an all-inclusive, fully fixed product that is simple and transparent. We designed the Haven Complete product in light of new EMR legislation, so that it protects our customers against CM and CfD. Haven Complete is fully fixed, offers budget certainty and protects our customers both through the unit rate element of their bill and for third party charges including CfD and CM. 

For more information and regular updates, you can connect with us on LinkedIn, subscribe to our YouTube channel.