On Friday 23 February, Regen submitted further written evidence to the Energy Security and Net Zero (ESNZ) Select Committee on locational marginal pricing (LMP) and progressive market reforms. In its submission it restates four key arguments. These include: LMP will increase investment and ongoing market risks, costing consumers and delaying net zero; the claimed benefits for LMP have been significantly overstated, with its costs and inefficiencies being underplayed; the benefits of LMP could be achieved more quickly and effectively through a progressive package of reforms; and LMP does not have the cross-industry and stakeholder support needed given the complexity, timescale, cost and risk of implementation. Regen consequently calls upon the ESNZ Select Committee to back the rapid publication of the second Review of Electricity Market Arrangements (REMA) consultation, which drops nodal LMP and moves forward with a progressive agenda for market reform, targeting the four priority objectives outlined within REMA.
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