UK Review of Electricity Market Arrangements
Energy transition Energy consultancy Power marketsLCP Delta were pleased provide the analysis to the government that informed one of the key components – the move to a more locational pricing model.
LCP Delta were pleased provide the analysis to the Government that informed one of the key components – the move to a more locational pricing model. Our analysis shows that a move to zonal pricing has the potential to bring benefits to the British electricity system and to households. However, these benefits may be offset by the additional risk premiums faced by investors, given the dramatic change to the way generators would be paid and the sheer scale of investment needed to reach net zero.
For our views on REMA, a summary of our analysis, and our take on how REMA will impact your investment decisions, please download the LCP Delta Insights report below.
If you would like to have a discussion with one of our team regarding this consultation, we can help in a number of ways, including:
- Providing an economic assessment on how any of the proposals will impact your current and future investments,
- Modelling how your assets could be impacted by a move to zonal pricing,
- Supporting your representation to Government as it develops its REMA policy options.
