Haven Power has slammed government plans to bring the next capacity auction forward, arguing that it could cost consumers around 7 per cent of their total bill.

The capacity auction in January 2017 would provide supplemental balancing reserve (SBR) and demand-side balancing reserve (DSBR) for delivery in the same year as opposed to 2018/19.

Haven Power said that energy customers must be made aware of the cost of the plans by the government and other suppliers.

The business supplier’s chief executive Peter Bennell told Utility Week: “The costs of this [early capacity auction in January 2017] could fall on customers at 6 or 7 per cent of the whole bill.

“We are trying to make customers aware of this, get them asking the right questions to avoid them getting a nasty shock. Other suppliers and the government should do the same, because at the moment it doesn’t seem like business or domestic customers are very aware.”

The government announced that it was considering reforms to the capacity market this month to “guarantee our long-term energy security”, which included the start of the capacity market being brought forward one year to January 2017.

Energy secretary Amber Rudd said: “The capacity market has driven down costs and secured energy at the lowest possible price for bill-payers, but I’m taking further action to tackle the legacy of under-investment and ensure our country’s long-term energy security.

“By buying more capacity earlier we will protect consumers and businesses from avoidable spikes in energy costs.”