Read the full response submitted by Regen for the BEIS Review of Electricity Market Arrangements consultation.
Later this week we will publish a summary of key takeaway points from our response.
“The energy crisis has sharpened our focus on where we need to get to; as secure, resilient, and affordable net zero electricity system by 2035. Market reform can certainly enable that to happen, but must be aligned with accelerating investment.”
Johnny Gowdy – Director, Regen
“The BEIS team have done a tremendous job to produce a coherent consultation. Having worked through our response it really becomes apparent how important market reform is, and also how complex. It is also clear that market reform is just one of several critical levers to deliver an energy system for the future.”
Ellie Brundrett – Net Zero Project Manager, Regen
We have submitted our response to the BEIS Review of Electricity Market Arrangement consultation response. It’s easily the longest consultation response Regen has written but, in truth, it could have been longer, there is so much to cover.
The key message from our analysis is that accelerating investment for net zero, energy security, economic growth and to reduce consumer bills is the critical priority. That means aligning market reforms with other key measures, such as the development of a clear Net Zero and Energy Security Delivery plan and bringing forward the investment that is needed in enabling infrastructure.
On the question of radical change versus evolution, our thinking is very much in favour of a ‘radical evolution’ approach, rather than betting the future of the UK’s energy system on one big-bang market upheaval. We have not found a compelling case that the market is fundamentally broken, although we certainly agree that there are lots of ways in which electricity market arrangements should be reformed, and plenty of potential solutions and enhancements that could be implemented as part of an integrated reform programme. As well as structural reform, we would encourage the REMA team to consider the performance and efficiency of energy markets.
A big thanks to Ellie Brundrett for leading the response and to Johnny Gowdy, Simon Gill, Olly Frankland and the rest of the Regen team for their input.
Thanks also to all the Regen and ESN member organisations who have fed in their thoughts and comments.
This is very much the start of a process and we look forward to working with the BEIS REMA team and our industry colleagues as the reforms are developed.