Following Regen director Johnny Gowdy’s appearance at the ESNZ Select Committee hearing on locational marginal pricing (LMP), Regen has now a submitted further written statement and evidence to the committee.
In our submission, we restate the four key arguments that:
- LMP will increase investment and ongoing market risks, costing the consumer and delaying net zero.
- The benefits claimed for LMP have been greatly overstated. Its costs and inefficiencies have been underplayed.
- Those benefits, and others, could be achieved more quickly and effectively through a progressive package of reforms.
- Given the complexity, timescale, cost and risk of implementation, LMP does not have the cross-industry and stakeholder support that would be needed.
Instead, we call on the Select Committee to back the rapid publication of the second REMA consultation, drop nodal locational marginal pricing as an option and move ahead with a progressive agenda for market reform targeting the four key priority objectives of REMA:
- Investing to create a renewables-based electricity system at pace
- Passing the value of low-cost energy through to consumers
- Transitioning away from unabated gas to a flexible, resilient and decarbonised electricity system
- Operating and optimising a net zero power system, cost effectively.
See the written evidence here and below.
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