The government sets out its approach for the REMA programme and how it plans to consider options for reform.
Options assessment criteria
Five criteria are proposed, against which the different options will be assessed:
- Least cost – Market design should lead to solutions being developed at least cost to consumers.
- Deliverability – Market design changes should be achievable within designated timeframes.
- Investor confidence – Market design must drive significant investment in low carbon technologies.
- Whole-system flexibility – Market design should incentivise market participants of all sizes (both supply and demand side) to act flexibly where it is efficient to do so.
- Adaptability – Market design should be adaptive and responsive to change.
Views are sought on these criteria.
Options assessment – organising options
Discussion of options for reforms is organised around core outcomes that the future power system will need to deliver, including: a net zero wholesale market; mass low carbon power; flexibility; capacity adequacy; and operability. Views are sought on the organisation of the options for reform, set out in Figure 1.
Options assessment – packaging reforms
The government notes that, at this stage, it is consulting on several options (Figure 1) and has not yet constructed any packages of reform. It added that the reform options will need to be further narrowed down before the possible combinations can be considered.
Packages of options will include at least one option from each row in Figure 1 but could include more than one. The government is seeking views on what it should consider when constructing and assessing packages of options.
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.
Read about what the next steps are once the consultation closes.