Policy Spotlight with Rhouda: New Electricity Market Reforms launched in the UK

A transformational review of Britain’s electricity market design has been launched by the UK government. The review of electricity market arrangements (REMA) is a major review aiming to enhance energy security and cut the high electricity costs for consumers in the long run.

The UK’s exposure to volatile global gas markets and energy costs for consumers could be greatly reduced through these reforms. Proposals for initial consultation include exploring changes to the wholesale electricity market, ultimately containing volatile gas market prices and setting the price of electricity produced by much cheaper renewables.

Reforms set to be consulted include the introduction of incentives for consumers to draw energy from the grid at cheaper rates when demand is low, reforming the capacity market and ensuring consumers are seeing cheaper prices as a result of lower cost, clean energy sources.

Sara Williams, CEO of Staffordshire Chambers of Commerce, said: “As energy prices continue to surge causing greater concern for many businesses across the nation, it is promising to see the government review how to provide the most efficient market arrangements which support decarbonisation and help to reduce bills for both households and businesses.

“As a Chamber, we are delighted to have so many business members who are already looking at and investing in renewable energy sources which has helped them cut costs as well as reduce their carbon footprint and increase their sustainability.”

The Department for Business, Energy, and Industrial Strategy (BEIS) has called for a consultation to take place to identify the reforms needed to transition to a decarbonised, cost-effective and secure electricity system.

We encourage all firms in the energy industry, consumer groups, academics, and policy think-tanks to engage with the consultation here.

Staffordshire Chambers of Commerce hold an Energy, Environment and Sustainability forum which is open to all members, register to attend here or email vicki.hardie@staffordshirechambers.co.uk for more information.