Review of Electricity Market Arrangements (REMA) – Second Consultation
This consultation is open for responses
Respond to this consultationSummary
DESNZ launches second REMA consultation with narrowed options for fundamental electricity market redesign. The consultation runs until May 2024 and follows the first consultation's identification of market failures in current arrangements. This represents the most significant potential reform to GB electricity markets since BETTA, with options including central dispatch, locational pricing, and enhanced market-based coordination.
Why it matters
This consultation will determine whether GB moves to administratively optimised dispatch (fixing prices, queueing energy) or enhanced price signals through locational marginal pricing (pricing scarcity, not queueing it). The narrowed options suggest DESNZ is converging on reforms that either centralise more coordination or strengthen market mechanisms — as such, the stakes are whether future electricity allocation follows planning or pricing logic.
Key facts
- •Second consultation in REMA process following first consultation
- •Narrowed range of options from initial broad review
- •Consultation period runs to May 2024
- •Accompanied by technical research reports
- •Most significant potential market reform since BETTA
Timeline
Areas affected
Related programmes
Memo
This consultation seeks views on a narrowed range of options to deliver an enduring electricity market framework that will work for businesses, industry, and households. The consultation document is accompanied by technical research reports. Please read the [consultation document](https://www.gov.uk/government/consultations/review-of-electricity-market-arrangements-rema-second-consultation) on GOV.UK. We welcome views from a range of stakeholders including: * energy industry * non-governmental organisations (NGOs) * consumer groups * academics * policy think tanks Read our [consultation privacy notice](https://www.gov.uk/government/publications/desnz-consultations-privacy-notice/privacy-notice-relating-to-consultation-responses-received-by-desnz).