Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, whether he has made an assessment of the potential merits of introducing locational pricing in the electricity grid.

As part of the Review of Electricity Market Arrangements or ‘REMA’ we are continuing to assess reforms for sending more efficient locational signals in the electricity market. This includes robustly assessing the costs and benefits of both locational (or zonal) pricing against improvements to locational signals in a reformed national pricing market. This will feed into the cost-benefit assessment of REMA reforms.

We have not made any decisions yet and aim to take a decision by around mid-2025.