Announced in the British Energy Security Strategy in April 2022, the Review of Electricity Market Arrangements (REMA) looks to address long-standing inefficiencies of the GB energy market design. The government launched the first REMA consultation in July 2022, presenting a number of proposed reforms. See here for more information.
The consultation closed in October 2022 and in March 2023 the government published a summary of responses to the consultation and its updated policy position with regards to the options set out. It identified some options for reform that were not taken forward, and others that were merging and which would not be considered as standalone mechanisms. See here for more information.
On 12 March 2024, the government published its second REMA consultation, through which it is seeking views on specific proposals and a short-list of remaining options, as well as how the remaining options interact with each other. See here for more information.
In terms of scope, REMA encompasses non-retail aspects of electricity markets, focusing on facilitating the balancing of supply and demand of electricity, and the policies that are meant to incentivise investments in the assets that generate or use electricity. More specifically, the scope of REMA includes the Balancing Mechanism, ancillary services, the current Contracts for Difference (CfD) scheme, and the Capacity Market (CM). Other topics like retail market changes, hydrogen, and long duration storage are the focus of other, parallel workstreams. They will only be included in REMA to the extent that they overlap with the main REMA objectives.
In our REMA portal, you will find analysis and insights that explore REMA and its potential implications for the energy sector and market participants.
Our thinking
A collection of expert blogs, podcasts and insight papers on REMA.
Why is it happening?
What is the consultation and when is it happening?
How we can help
Our expertise and courses will help you better understand REMA.