Review of Electricity Market Arrangements (2022)
Published: Mon 10 Oct 2022
Published: Mon 10 Oct 2022
We welcome this consultation and broadly agree with the five bullet point headings set out in the document. We express the importance to recognise that as the energy system in 2035 will look significantly different – there are some specific issues and outcomes which needed to be addressed, explicitly as ‘success criteria’ with any future market changes.
We also believe there is only value in locational pricing if it drives behaviour. If that is the main reason then timing is a major factor, the kind of decisions that would be impacted (where to live, build a factory etc.) are long-term, so any LMP would need to be phased in over a time frame that is in line with people’s decision making.
We would also reinforce the importance of ensuring a whole-system viewpoint by aligning this work with retail market changes. The REMA scope includes all technologies that currently (or could) participate in electricity markets, but the scope excludes new nuclear; first of a kind project; and other markets e.g., natural gas, hydrogen, and policies for demand reduction.