Westminster Energy, Environment & Transport Forum

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Next steps for electricity market reform

Morning, Monday, 26th January 2026

Online


This conference will examine next steps for electricity market reform in the UK, following the Review of Electricity Market Arrangements summer update.


It will bring stakeholders and policymakers together to assess progress as NESO refines its strategic system planning framework and Ofgem advances proposals for transmission and balancing reform. It also be an opportunity to review ongoing work towards the National Pricing Delivery Plan and its coordination with Clean Power 2030 objectives.


Policy developments & implications
Sessions will consider the direction of policy, including priorities for Capacity Market and balancing reform, and alignment with the next Contracts for Difference allocation round, as well as ongoing work under NESO’s Constraints Collaboration Project to address network congestion and reduce related costs.


Areas for discussion include implications for investment, system flexibility, and the wider economic and regional context, including long-term value for consumers.


Planning, infrastructure & consumer impact
Delegates will assess next steps following consultation on draft guidance for network and system planning, including integration of local energy plans with national and regional networks, approaches to strengthening public engagement, and implications for infrastructure placement and delivery timelines.


Discussion will look at differences in network costs across regions, options for managing impact for consumers and the system as a whole, and what these factors might mean for the rollout of low-carbon technologies and storage.


Collaboration & long-term efficiency
Looking at capacity market reform, discussion will focus on how new measures such as termination fees for demand-side response might affect participation and investment signals.


Sessions will consider potential implementation of digital grid management tools, data-sharing systems, and frameworks for closer coordination between local authorities and regulators, to improve efficiency and support longer-term system development.


Overview of areas for discussion

  • market reform strategy: progress on REMA, system planning, and charging reform - interaction between pricing and CfD timelines - impact on investor confidence
  • capacity and balancing reform: revised arrangements for flexibility and dispatchable assets - signals for investment and coordination - links to wider reform activity
  • planning and system coordination: alignment of local, regional, and national energy plans - responsibilities across planning bodies - consistency with delivery aims
  • regional infrastructure outcomes: incentives for efficient network development - effects of constraint and access reform - regional variation in cost and service
  • flexibility and storage: barriers to deployment and connection - role in meeting system needs - commercial risks and signals
  • public and community involvement: expectations for engagement in planning - effects on timelines and consent - responsibilities for communication
  • capacity market design: role of new measures, including termination fees - routes for clean capacity participation - implications for reliability
  • system-level coordination: collaboration between regulators, NESO, and local authorities - use of digital tools and data - risks of fragmentation or duplication
  • policy and regulatory delivery: readiness for implementation and change - capacity of delivery bodies - approaches to sequencing and review


Keynote Speakers

Georgina Mills

Director, Energy Systems Management and Security, Ofgem

Inge Hansen

Director, Group and Markets Regulation, SSE Group