UK consults on major power market reform

Government eyes biggest overhaul of wholesale market for 20 years to support transition goals and break price link with gas

The UK government is consulting on a top-to-bottom redesign of the country’s wholesale electricity market aimed at better equipping it for the transition and tackling the energy affordability crisis by breaking the price link between power and natural gas. The scope of the initial consultation on the Review of Electricity Markets (Rema), which would be the biggest policy intervention in the market for 20 years, covers multiple aspects of the wholesale market from pricing to capacity markets, contracts for difference and balancing services. It also floats the idea of introducing incentives for consumers to draw energy from the grid at cheaper rates when demand is low or when wind and solar ge