UK review of Electricity Markets Arrangements - BusinessLDN consultation response

Our primary concern within the Review of Electricity Markets Arrangements (REMA) consultation is that the move towards locational marginal pricing (LMP) poses significant risks to London’s competitiveness because London and the South (Region J, p96 of the Options Assessment) are likely to be impacted by higher electricity prices than other parts of the country. This is a particular challenge for London consumers during a time of cost-of-living pressures and when a quarter of Londoners are living in poverty after housing costs are taken into account. The proposal could also discourage location of energy intensive businesses and investment away from the capital, negatively impacting London’s competitiveness.