Four years after the Review of Electricity Market Arrangements kicked off, the focus has shifted to Reformed National Pricing as the way forward. This keeps a single national electricity price while adding smarter planning and market tweaks to cut waste and lower overall costs.
Why this matters for your bills
Network costs are already climbing fast, with transmission investment set to hit £70 billion in the next price control period. Those rises have already added around £66 a year to the typical household bill under the price cap. We believe getting the balance right between central planning and market signals could stop unnecessary spending and pass savings on to consumers.
Strategic planning vs market competition
The new Strategic Spatial Energy Plan from NESO aims to guide where new generation and networks get built. Ofgem and DESNZ are consulting on how directive this plan should be. We think a flexible approach that still lets competition work will deliver the best long-term results for bill payers.
Network charging and constraint costs
Locational network charges (TNUoS) could help send clearer signals about the real cost of connecting in different areas. At the same time, efforts to cut constraint costs in the Balancing Mechanism could save several billion pounds a year. You can compare the latest energy deals to see how these system changes might affect what you pay.
Decisions on these reforms are due soon, and getting them right could support both lower bills and the shift to cleaner power.
