Over 2022-23, Ofgem undertook an assessment of locational wholesale electricity market design options (“locational wholesale pricing assessment”). This work supports the UK Government’s consideration of these market design options as part of its Review of Electricity Market Arrangements.
The assessment aimed to:
- consider how these market designs could operate in Great Britain
- undertake economic modelling to identify the potential quantitative benefits associated with different wholesale market designs in scope
- assess likely implementation requirements and costs
- evaluate potential distributional impacts and potential mitigation measures.
Regular stakeholder engagement, primarily via a series of workshops with a wide range of interests, was used to help test and refine the modelling methodology and assumptions, evaluate different design options and stakeholder impacts, and share interim findings for discussion. Materials from these sessions, including a Call for Input and a FAQ, are available below.
The final report and associated documents can be found in our published assessment of locational wholesale pricing for Great Britain.