REMA: No to Zonal so What Next?

In June, the Climate Change Committee (CCC) published its “Progress in reducing emissions” report to Parliament. It highlighted, that with more action, the UK can still achieve its legally binding climate targets and improve energy security for households and businesses across the UK. However, a lot more action was needed.

Few topics have stirred as much debate in the GB energy sector as the question of whether the electricity market should shift from a national wholesale price to a zonal one. So, what’s the real story?

We explore the practical challenges and potential timelines if zonal pricing is adopted, drawing on Cornwall Insight’s new Zonal GB Benchmark Power Curve, the paper examines the complexity of the reform looking at the key points on the way.

Principal Consultant Kate Mulvany delves into the key proposals and the potential impacts on investors, consumers, and the broader energy system.

Senior Analyst Hattie Lunn, discusses how Ofgem is looking to revive consumer confidence in our energy suppliers to improve engagement

The 30th October marked the new Government's first Budget, which outlines spending plans across the whole economy. It sets out a number of energy-related announcements

In our latest blog, Prinicpal Consultant Dr Craig Lowrey examines what we can expect from an energy perspective in the 2024 budget.

In our latest blog, Lead Regulatory Analyst Giles McNaught examines the potential impact of the Minimum Capital Requirement on the domestic supply market and the delicate balancing act the government and regulators must maintain to ensure healthy competition.

Our latest report discusses a series of actions that can be taken by the new government, industry bodies, and market participants to help regain and maintain momentum in the transition to net zero.

The new government is wasting no time rolling out its ambitious plans for a net zero electricity system by 2030.

Our experts discuss expanding the Balancing Mechanism (BM) versus the Central Dispatch approach as part of REMA.

Our experts focus on the evolution of the Contracts for Difference (CfD) scheme as part of REMA.

Our experts discuss an overview of the REMA and give a synopsis on the second consultation.

Our experts discuss an overview of the REMA and give a synopsis on the second consultation.

Since publishing the previous iteration of the Low-carbon Hydrogen Policy Index in April 2023, the global hydrogen market has continued to grow and develop as both national governments and industry stakeholders have sought to expand the role of hydrogen in their decarbonisation plans.

In this piece, we will assess the schemes’ effectiveness by looking at subsequent market trends, contextualising the cost relative to government spend, and considering what happens next.  

The past two years have seen rocketing energy prices, as households and businesses grapple with bills far beyond pre-crisis levels. There is no way to turn back the clock, however, we can look to seize the many opportunities to reshape and future-proof the UK energy system, ensuring a brighter future for consumers.

Renewable Energy Guarantees of Origin, more commonly referred to as REGOs, are certificates issued to accredited renewable generators for every MWh of electricity they produce over a year period. The initial intentions of these certificates were to provide suppliers a means to prove the level of renewable generation they received and to avoid the ‘double \[…\]

Over the last week, a number of anticipated publications were issued by Ofgem that hold the potential to make a significant change to the requirements on both domestic and non-domestic suppliers. The findings of Ofgem’s non-domestic market review were revealed, alongside a policy consultation on the options available

Smart meters have the potential to play a critical role in energy security, providing near real-time information through a visual in-home display, empowering consumers to change how much energy they use and when they use it. If consumers reduce or shift their energy consumption away from peak periods, they may be able to save money

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.

The Market Stabilisation Charge (MSC) requires all domestic suppliers acquiring a customer to make a payment to the supplier that is losing the customer. The charge applies to all switches, so suppliers are not obliged to inform competitors which tariff the consumer switched to or from. It is comprised of two sub-charges; one for gas \[…\]