Review of electricity market arrangements (REMA): Summer update, 2025 

The UK Government’s REMA programme, launched in 2022, aims to modernise the electricity market to support a decarbonised, cost-effective, and secure power system. This 2025 summer update outlines key decisions and the next steps in delivering a future-fit electricity market aligned with the UK’s clean energy ambitions.

Key Decisions

  • Retention of a Single National Market: The government has decided to maintain a GB-wide wholesale electricity market, rejecting the proposal for zonal pricing. To ensure consistency and simplicity for investors and consumers.
  • Ambitious Reform Package: A comprehensive set of reforms will be introduced to:
    • Improve market efficiency.
    • Enhance coordination and strategic planning of the electricity system.
    • Support the transition to a renewables-based, flexible, and resilient grid.
  • No Zonal Pricing: After extensive consultation, zonal pricing was deemed less effective in delivering value and certainty compared to a national model.

Strategic Objectives

  • Clean Power by 2030: REMA is a cornerstone of the UK’s mission to become a clean energy superpower, targeting full decarbonisation of the power sector by 2030.
  • Consumer Value and Security: The reforms aim to pass the benefits of renewable energy to consumers while ensuring energy security and affordability.
  • Investor Confidence: By providing a stable and predictable market structure, the government seeks to attract long-term investment in clean energy infrastructure.

Next Steps

  • Detailed Implementation Plans: Further details on the reform package and implementation timelines will be published later in 2025.
  • Collaboration with Stakeholders: Continued engagement with Ofgem, the National Energy System Operator (NESO), and industry stakeholders will be critical to delivering the reforms.

You can read the full update here.