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Our Thinking

Electricity Pylon

Can REMA save the energy market?

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.

Money

Can we fix the wholesale energy market this winter to lower prices and should we want to?

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)

Electricity Pylon

Understanding REMA

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.