Britain plans to hold an early electricity auction this winter for delivery in 2017/2018, bringing the capacity market forward by one year.
The move follows a consultation in March that showed clear support from industry and investors for three key reforms to ensure the UK can provide energy security, DECC said.
Measures include toughening sanctions for firms which go back on their agreements as well as buying more power and buying it earlier.
The system aims to drive down costs while giving market participants a payment to ensure there is enough electricity available during peak times in the winter.
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