Current status: Answered by Gillian Martin on 30 May 2024
To ask the Scottish Government, regarding the potential impact on its energy policy in Scotland, what its position is on the proposed introduction of locational marginal pricing for the GB wholesale electricity market, and whether it plans to respond to the UK Government’s consultation on the review of electricity market arrangements.
The UK Government’s Review of Electricity Market Arrangements (REMA) provides an opportunity to take a whole systems view of our future electricity market and consider how it can be reformed to support further renewable deployment, ensure security of supply and reduce costs for consumers. We are clear that any reforms should support a fair and just transition to net zero. We provided a response to the second REMA consultation on 3 May.
We are aware of the potential impacts, both positive and negative, that locational marginal pricing could have for market participants, and we are cognisant of concerns expressed by the renewables industry in Scotland. We are also aware of potential benefits for consumers, including those in or at risk of fuel poverty, as well as for the decarbonisation of industry, heat and transport through electrification. We continue to call on the UK Government to act quickly to provide further clarity on market reform options.