Ministerial foreword

Our mission to make Britain a clean energy superpower is about getting off expensive, insecure fossil fuels controlled by petrostates and dictators, and replacing it with clean homegrown energy that we control. It presents a huge opportunity to boost our energy security, protect consumers, create jobs, and drive growth, while tackling the climate crisis.

To deliver this mission, we must ensure that our electricity market arrangements are fit for the future. The Review of Electricity Market Arrangements (REMA) Programme was set up in 2022 to consider how best to deliver a fair, affordable and secure power system. It has been supercharged by this government’s clean energy superpower mission, delivering clean power by 2030 and accelerating to net zero across the economy.

This document sets out the outcome of that review, and our plans to create a more coordinated and strategically planned electricity system. This will give certainty to investors and ensure future electricity generation in Great Britain delivers the best value for consumers. We have decided to retain a single national GB-wide wholesale market and introduce an ambitious package of reform to improve the efficiency of our future power system. We have therefore decided not to implement zonal pricing.

These decisions will lay the foundation for a fair, affordable, secure and efficient electricity market. I would like to thank all the stakeholders across the energy sector who have worked with us during REMA. Delivering substantial and radical improvements in a national model will require continued collaboration between government including Ofgem and the National Energy System Operator (NESO), and stakeholders across the energy sector, and we will set out our detailed plans later this year.

This is a decisive step forward that lays the foundation for cheaper, more secure, and clean homegrown power for homes and businesses across Britain.

Foreword by the Rt Hon Ed Miliband MP
Secretary of State for Energy Security and Net Zero