• The price starts at the Auction Price Cap (as set out in the Auction Guidelines).

• The price is reduced in each round by a set decrement.

• Bidders submit Exit Bids to retract a CMU from the Auction at a particular price.

• An Exit Bid is the minimum price at which a Bidder would accept a Capacity Agreement.

• As the price descends and exit bids are submitted, the total remaining capacity decreases with price.

• The Auction ends when a price is reached at which the total remaining capacity is equal to the capacity demanded, the "Clearing Price".

• Successful CMUs (those that have not submitted Exit Bids above the clearing price) all receive a Capacity Agreement at the Clearing Price.

​The Auction is managed by National Grid and conducted via a web-based Auction System.​​