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<p>Like all commodities markets globally, the UK's wholesale electricity market works
through marginal pricing, where the price is set by the additional unit needed to
meet overall demand. This provides a signal of the value of consuming or generating
an additional unit at any given time, on which both operational and investment decisions
can be made.</p><p> </p><p>As part of the Review of Electricity Market Arrangements
(REMA) programme, the Government is considering a range of potential options to maintain
the benefits of marginal pricing, while shielding consumers from the impacts of potential
future commodity price spikes and ensuring they benefit from lower cost renewables.</p>
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