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.
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)