Could zonal pricing reduce energy costs?

Review of Electricity Markets Arrangements (REMA) was a policy developed by the previous Conservative government.

But with a Labour victory at the general election came a new plan for the energy system Clean Power 2030 backed by an interventionist state.

A decision is still expected by the summer and is vital to the confidence business will have in government’s plans.

They include, returning to ways to finally break the link between gas and electricity prices, thinking about hypothecating carbon pricing revenues or rethinking how Ofgem calculates network costs? Too often industry focuses solely on their thing and can’t abstract it to a political process. But it’s naïve to think that government can do that alone. There’s a reason REMA has been three years in the making, it’s hard. Time to start compromising..