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Through its first REMA consultation, the government set out its approach for the REMA programme and how it plans to consider options for reform. As part of this, it sought views on five proposed criteria, against which the different options for reform would be assessed.

Following stakeholder feedback to its first consultation, in its second REMA consultation DESNZ highlighted that is has updated the five criteria, which are now as follows:

Options assessment criteria
  • Value for money (previously ‘least cost’) – Market design should lead to solutions that minimise overall system costs for consumers and sub-groups of consumers, with ongoing incentives to keep costs as low as possible and drive innovation.
  • Deliverability – Changes to market design should be achievable within designated timeframes and seek to minimise disruption during the transition.
  • Investor confidence –Market design must drive the significant investment in the full range of low carbon technologies needed to deliver objectives.
  • Whole-system flexibility – Market design should incentivise market participants of all sizes (both supply and demand) to act flexibly where it is efficient to do so, as well as promote greater coordination across traditional energy system boundaries.
  • Adaptability – Market design should be adaptive and responsive to change.

Initial options assessment

The remaining chapters of the consultation set out the government’s emerging conclusions from its initial assessment of policy options for reform, with a number of questions set out for each option.

Next steps

Read about what the next steps are once the consultation closes.