Our client objectives

Our client asked us to propose options for a revised electricity market framework to support the transition to net zero. It recognised the need to accommodate increased volumes of renewable energy, provide opportunities for customers to play a more active role in the market, expand the network infrastructure and determine an appropriate balance between competition and regulatory oversight.

Our approach

Our team brought significant experience of market restructuring from around the world, enabling us to identify and determine “fit for purpose” solutions. We summarised a baseline position taking account of the current structure, operations and regulatory oversight. We consulted with market participants and other stakeholders to assess the level of interest in various market services and to understand their priorities. We ranked our potential solutions against policy objectives and developed a high-level implementation plan.

Outcomes

• We identified a market framework that was sufficiently flexible to adapt to future-generation technology pathways

• We highlighted whether, when and how competition should be introduced, the approach to regulation and its remit, and implications for tariff determination and incentivisation of market participants

• We outlined how operations would need to change to reflect the increasing proportion of intermittent, renewable generation whilst maintaining energy security standards