Ongoing changes to the planning system could reduce the need for REMA's zonal pricing, a principal at consultancy AFRY said, as the government prepares to push the electricity reform package onwards this year.
In this guest blog, Tom Smout, senior associate at Aurora Energy Research, discusses the opening of the second REMA consultation and weighs the impact of Locational Marginal Pricing.
The energy industry's welcome for the opening of the Review of Electricity Market Arrangements' second consultation has been somewhat dampened by the UK government's coinciding support for new gas power plants.
A new report published by management consultancy AFRY on Friday has urged for an "evolutionary rather than a revolutionary" redesign of the UK energy market.
Changing to a zonal pricing market could bring down energy bills for consumers in Scotland substantially, but there are concerns about its impact on investment.