Morning, Friday, 5th March 2027
Online
This conference will consider next steps for electricity market reform in Great Britain. Areas for discussion include the design and implementation of Reformed National Pricing and its alignment with strategic energy planning, reform of market operation and investment signals, frameworks for low-carbon generation and flexibility, approaches to reducing system costs, and priorities for security of supply, affordability and regulatory coordination.
Energy Independence Bill, Reformed National Pricing & strategic energy planning
It will bring together stakeholders and policymakers to examine priorities following the introduction of the Energy Independence Bill, which includes powers to update market rules, network charging and trading arrangements. It also comes as work progresses on the next stages of Reformed National Pricing are being developed, ahead of the Government’s forthcoming 10 Year Plan, and as NESO develops the draft Strategic Spatial Energy Plan ahead of consultation in early 2027.
Delegates will discuss the next phase of reform following the decision to retain a national wholesale electricity market, including approaches to strengthening siting and investment signals, improving coordination between market arrangements and strategic energy planning, and reducing system and constraint costs while maintaining conditions for investment.
Market arrangements, low-carbon investment & security of supply
The agenda will consider reform to transmission charging, balancing, settlement and dispatch, including approaches to TNUoS and locational signals, priorities for connections reform and options for increasing participation in flexibility markets. Attendees will assess the outcomes of Allocation Round 8 and the implications of wider CfD reform for investment in low-carbon generation.
They will also consider proposed voluntary Wholesale Contracts for Difference for existing low-carbon generators, alongside the increase in the Electricity Generator Levy rate and its extension beyond 2028 for the duration of the longest Wholesale CfD contracts, including the implications for revenue certainty, project financing, investor confidence and consumer costs.
Discussion will also include the future role of the Capacity Market, storage, interconnection and low-carbon dispatchable generation in supporting security of supply as the electricity system decarbonises.
System costs, consumers & regulatory roles
Further sessions will discuss how network, balancing and policy costs are allocated as the Government develops a Cost Control Framework for energy bills, alongside retail innovation, tariff design, consumer-led flexibility and implications for household affordability and industrial competitiveness.
The respective roles of DESNZ, Ofgem and NESO will also be considered following the Ofgem Review, as reform to Ofgem’s duties and powers progress through the Energy Independence Bill and the Government plans a wider review of accountability across the energy system. Discussion will include priorities for regulatory coordination, investment and innovation, consumer protection and accountability, and the long-term balance between strategic planning, independent regulation and market-based approaches as Great Britain works towards Clean Power 2030.
Overview of areas for discussion
- strategic planning, connections & infrastructure delivery:
- development of the Strategic Spatial Energy Plan - translating spatial priorities into investment and delivery signals
- alignment between the SSEP, CSNP, RESPs, connections and planning - Gate 2 prioritisation and strategic demand connections - implications for the queue and infrastructure sequencing
- coordination of generation, storage and transmission investment - project readiness, delivery risk and competition in network delivery, including the role of Great British Grid
- siting levers, network charging & investment signals:
- choice of siting and investment levers under Reformed National Pricing - balance between the connections regime and locational charging
- reform of TNUoS - predictability, cost-reflectivity and siting incentives
- legacy and transitional arrangements for existing assets and contracted projects - implications for investor confidence
- constraints, balancing & dispatch:
- volume and cost of network constraints - incentives for generation, storage and demand-side response
- balancing, settlement and dispatch reform - participation thresholds - unit bidding and shorter settlement periods - treatment of subsidies in balancing bids
- flexibility & security of supply:
- scaling short and long-duration flexibility - batteries, demand response, interconnection and low-carbon dispatchable generation
- proposed UK-EU electricity agreement and cross-border trading arrangements
- future Capacity Market requirements as renewable penetration increases - system adequacy - access for emerging technologies
- CfDs & generation investment:
- AR8 outcomes and future allocation rounds - connections requirements, delivery flexibility and competition
- proposed Wholesale CfDs for existing generators - interaction with the Electricity Generator Levy, merchant exposure and the Renewables Obligation - forward market liquidity, PPAs and financing
- market costs & consumer outcomes:
- allocation of network, balancing and policy costs - the proposed Cost Control Framework - implications for households, businesses and energy-intensive users
- retail innovation and flexible tariffs - consumer participation, accessibility, transparency and protection
- regulation & market governance:
- roles of DESNZ, Ofgem and NESO - implementation of the Ofgem Review and the Energy Independence Bill - planned review of accountability across the energy system
- regulatory certainty and investability - managing change across existing contracts and assets while enabling reform and innovation
