The 'capacity market' scheme has been set up between the government and energy companies to keep power stations on standby for times when demand peaks.
But how does it affect me?
The government have published a report stating that by paying the energy companies to cover this, each household will see bills increase around £38 in 2018 - a total of £3bn.
Why has this been set up?
“Our top priority is ensuring that families and businesses have a secure, affordable, clean energy supply, which they can rely on now and into the future.” said a spokesperson for the Department of Energy and Climate Change (DECC).
Energy companies have been closing their doors due to the drop in wholesale prices meaning that the stations are no longer commercially viable.
Why haven't I heard about it?
With so many elections going on across the country the report published by the government has gone relatively unnoticed. The report can be viewed here.
Are there any benefits?
Energy companies claim that this will help to beat the rise of prices when the wholesale market changes. The DECC has claimed this will effectively save households an average of £48 in 2018.
So will I save? Or will I spend?
It's hard to say at this point, with the market always changing, as we find out more the position in the market will be clearer. The best way to try and combat this is to ensure that when your renewal period comes along you're paying the most competitive prices. These can be found at energyadviceline.org.uk - and we even do the hard work of switching for you.