The Government has announced its final decision of the Review of the Electricity Market Arrangements (REMA) programme

The central outcome is that the UK will retain a single national wholesale electricity market, rejecting zonal pricing. Instead, the government will pursue a “reformed national pricing” model, supported by targeted reforms across planning, network charging, balancing and contracts. This has been one of the most contentious proposals on the table, with strong opinions across the sector.

REA CEO Trevor Hutchings shares his perspective below:

“To get to an energy system that is fit for the future, we can’t rely on the policies of the past. Market reform is essential, but we know from our own membership that there are strong views on either side of the debate, and that any change can create winners and losers. However, it is uncertainty which dents investor confidence and therefore I am pleased we now have further clarity. Focus now must be on growing our clean power system and, critically, bringing down the cost of electricity so that consumers feel the benefits of net zero in their pockets.”

A new Strategic Spatial Energy Plan (SSEP), to be developed by NESO and published in 2026, will guide optimal siting of generation, storage and hydrogen infrastructure. It aims to enable anticipatory network investment and reduce grid delays – a major REA priority.

The REA attended a DESNZ briefing this week and will continue engaging with Government, NESO and Ofgem to ensure member priorities shape delivery.

Members are able to refer to our dedicated mailer for more detail or get in touch with our head of power with any questions.