In September, over 100 industry professionals met to hear our experts explore REMA, including how it may affect different kinds of businesses. It included a… Read More »Podcast Series | Connecting the dots: REMA and power market design
On 3 October, Sustainability First published its response to BEIS’s Review of Electricity Market Arrangements (REMA) consultation.
Recent challenges have emphasised the recurring importance of the energy trilemma, namely the need to decarbonise the energy system while ensuring energy security and affordability. The government announced its Review of Electricity Market Arrangements (REMA) in April 2022 to address these issues. In July, the government published a consultation paper for REMA, presenting a number of proposed reforms.
The Energy Industry is in danger of losing its licence to operate. Rightly or wrongly, it is being blamed for increases in the wholesale costs of gas and power which are largely beyond its control. Exposure to gas prices is driven by failures to rollout energy efficiency, late delivery of new nuclear and renewables and overexposure to the continent. These factors drive and exacerbate inflation which will likely be responsible for a recession as businesses and households reduce activity and spending in response to rising energy prices.
There’s a lot of debate on what might be done outside the energy market to relieve consumer bills. We don’t have much to add there, but we have been thinking and chatting around the place about whether temporary fixes could be made to the wholesale market design that would result in lower prices for consumers (and thus less pressure for external political intervention)
As we strive for net zero and to wean ourselves from gas, BEIS’s new Review of Electricity Market Arrangements (REMA) promises the biggest overhaul in the wholesale power market for a generation.