Background: What is Reformed National Pricing (RNP)?
In July 2022, the UK Government launched its landmark Review of Electricity Market Arrangements (REMA). Following extensive consultation, it has now confirmed its decision to retain and reform the national electricity market, opting against a shift to zonal pricing, which would have split the wholesale market into regional bidding zones.
While this decision maintains a national pricing framework, the proposed reforms under Reformed National Pricing (RNP) are far from minor. They represent a potentially transformative shift in how the GB electricity market operates, with changes spanning both investment and operational dimensions.
- On the investment side, reforms to network access and charging, connections policy and allocation mechanisms (CfDs, Capacity Market) to provide stronger locational signals to align to the National Energy System Operator’s (NESO) Strategic Spatial Energy Plan (SSEP) will increasingly influence the type and location of new build.
- On the operational side, changes are being considered to the wholesale and balancing markets – to improve the visibility for both the system operator and market participants, and to enhance participation and competition in system services, with the overall objective of improving efficiency and lessening the rapid rise of system costs, including transmission constraints.
What does a move to RNP mean for you?
The Government has decided to retain the national wholesale price, which will have significant implications for everyone involved in the GB energy sector, including you.
At Baringa, we have spent the last two years working closely with clients, across the GB energy value chain - government, investors, traders and suppliers - helping them understand what the contemplated reform options could mean for their operations and strategies.
If you are active in the GB power market, we are ready to support you in navigating the upcoming marketing reform. Explore some of our insights in the following articles, webinars, and upcoming events, and get in touch to share the challenges you are facing.
Insights

REMA Unveiled: dissecting the Government’s decision in favour of Reformed National Pricing
Explore the Government’s REMA decision favouring reformed national pricing and its impact on investment signals, grid planning and market efficiency.
Read more
Dissecting the REMA decision
Three years in the making, the Review of Electricity Market Arrangements (REMA) decision has now been published: the UK Government has decided to retain the national wholesale price.
Read more
What might a reformed GB national power market look like under REMA?
Discover how a reformed national market is likely to include significant changes to current market arrangements, with material impacts for market participants.
Read more
REMA and investing in GB power market under uncertainty
Learn about the opportunities and challenges of investing in the GB power market under uncertainty and how Baringa can help
Read more
Quantifying the business case impacts of REMA
Do you understand the impact of REMA on the profitability of different technologies? Watch this webinar to inform your investment decision making.
Read more
REMA and the route to net zero
As part of our ongoing series of events on the UK’s path to net zero, we were joined by speakers across the energy industry to discuss REMA, its implications, and the challenges and opportunities policymakers and the industry face.
Read more
Low Carbon Futures Webinar Series: Renewables and REMA - how will market reform impact renewables in GB
As we move forward to a Low Carbon Future, this webinar focuses on Renewables and REMA: How will market reform impact renewables in GB?
Read moreContact REMA@Baringa.com for any questions.
Here are key questions and topics we are working on with clients, get in touch to discuss:
How will the move to a reformed national market impact your investment and bid strategy?
Experts: Alex Weir, Sarah Keay-Bright, Petra Koulia
- What impact will different market reform options have on the market as a whole, and what does this mean for your business?
- How do you create a resilient long-term investment strategy in the face of uncertainty?
- How should you factor RNP outcomes into bid strategies (e.g. CfD and CM) and negotiations?
- What is the impact on discount rates and IRRs for assets under RNP?
We bring together experts in economic analysis, policy design and appraisal, and commercial and auction strategy, to assess the impact of a range of policy options on your business and the broader market, and help you develop strategies to manage through uncertainty.
How will RNP impact renewable and flexible power generators?
Experts: Vikash Ahuja, John Perkins
- How will the valuation of power assets and portfolios change under an RNP framework?
- How does the move to an RNP market influence the risk-return profile for investors in power projects?
- What opportunities and risks emerge under the reformed market framework?
- What is the long-term revenue predictability for assets through the RNP transition period?
Using our advanced power market modelling capabilities, we advise developers and investors to help deploy capital in the power generation space across all asset types – from initial business case development to equity and debt raise to buying and selling of assets between market participants. We have unmatched independence, credibility and bankability in the investment community and are a leading advisor helping clients on their investment journey.
What does RNP mean for market access and trading?
Experts: Elise Ganendra, Karim Alnakkash
- How do I build trading and monetisation strategies that are RNP-ready?
- What are the risks to my existing offtake contracts and how do I safeguard them?
- Are there new market trading opportunities to consider with RNP?
- How will the competitive landscape for trading and offtake change as we transition to RNP and beyond?
- What is the impact of liquidity across the different zones, and what are the implications on the cost of trading?
Running detailed diagnostics of end-to-end enterprise functionality, we help shape and execute sustainable portfolios, manage and mitigate risk, and optimise revenue drivers for our clients.
What does RNP market mean for the retailers and suppliers?
Experts: Peter Hicks and Balint Vizi
- A move to shorter settlement periods: How could this affect suppliers' tariff propositions further given recent major market changes such as Market-wide Half-Hourly Settlement?
- Consumer Protection: What are the key considerations for policymakers and Ofgem, particularly given the focus on accelerated and anticipatory network build?
- Customer Service Innovations: What new customer service propositions might emerge, and what are the commercial models will drive their success in the future market?
- Supplier Risk Management: What risks will suppliers need to manage, and what impact will these have for power purchasing strategies?
- Forward Hedging: How will wholesale market and CfD reforms impact suppliers' forward hedging strategies?
- How will RNP changes impact green home initiatives, LCT grants, or the adoption of local heat network models across GB regions given the link with strategic spatial planning?
Our expertise enables clients to design and implement robust policies, create strategies to optimise commercial opportunities, and effectively manage and mitigate risks.
What does RNP mean for large energy users?
Experts: James Constable, Alex Weir
- How is RNP likely to impact my energy costs and power procurement strategy?
- How will RNP impact existing long-term supply contracts or Power Purchase Agreements?
- How will RNP impact the reliability and security of energy supply, especially for critical industries that require consistent power?
- What opportunities might RNP offer, for example in demand-side management programmes?
- How can my business make long-term decisions in the face of uncertainty around future prices, capacity mix, market design, and policy and regulatory changes?
- How will RNP impact the ability of my business to meet ESG and sustainability targets?
Using a combination of our wholesale market and retail modelling capabilities, combined with our market leading ‘Energy Source’ renewable energy procurement platform, we can help large energy users understand the risks and opportunities under different RNP packages and how best to manage these through their energy procurement strategies
How do I set my trading desk up for success?
Experts: Ellenor Rhodes, Anthony Willis
- What technologies do I need to invest in to enable maximum value capture?
- What does my regulatory and compliance roadmap look like under RNP?
- Is my overarching systems architecture suitable for risk monitoring and hedging under shorter settlement periods and the possible move to unit bidding in wholesale markets?
- What AI solutions do I need to invest in to become competitive under RNP?
By combining our experts in organisational and digital transformation, people and talent, supply chain and procurement, data and AI, we can helping trading companies rely on our help to adapt to a changing world



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