Review of Electricity Market Arrangements – Second Consultation

March 2024
Region: Europe

The Department for Energy Security and Net Zero (DESNZ) has unveiled its latest thinking on its Review of Electricity Market Arrangements (REMA) in a second consultation document, the objective being the maintenance of energy security and affordability during a transition to a decarbonised energy system.

DESNZ has indicated that it will be working closely with Ofgem, ESO/NESO and industry to develop different market designs under both national and zonal pricing scenarios, to enable it to assess and compare the risks and benefits of each design. The interaction between proposed reforms to the wholesale market and the CfD regime will be a particular focus in the coming months, with a view to identifying the optimal outcome given the ultimate objective of delivering cost-effective security of supply from a decarbonised electricity industry.

Our experts have reviewed and provided an overview of the consultation document.

7 May is the closing date for responses to the consultation, which can be submitted online.