Can we fix the wholesale energy market this winter to lower prices and should we want to? 

The Review of Electricity Market Arrangements (REMA) is intended to discuss and decide on appropriate market arrangements for 2035 in a Net Zero, low marginal cost, renewables-dominated market. It is unlikely it has the scope or capability to intervene in the market arrangements ahead of this winter. Therefore, some new interventions requiring emergency legislation, government actions, or within the existing arrangements would be needed.  

We’ve come up with a few options and started to think if they could be implemented: we are sure we haven’t thought of everything in terms of either options, the practicalities of implementation, or the possible wider consequences of their implementation. Some are also pretty radical and possibly not even sensible; these are very unusual times. Hopefully, they show that there are levers that can be pulled within the industry structure as well as without it. 

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Energy Market Design
Tom Edwards

Tom Edwards

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