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Great Britain — Reformed National Market

A national wholesale market supported by balancing, constraint management, capacity procurement, Contracts for Difference, ancillary services, network charging and local flexibility mechanisms.

At a glance

Price geography
National
Coordination
Centralised

Why consider it?

A national wholesale market supported by balancing, constraint management, capacity procurement, Contracts for Difference, ancillary services, network charging and local flexibility mechanisms.

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Architecture at a glance

One national wholesale price, set centrally, with congestion and balancing handled as separate mechanisms rather than built into the price itself.

  1. Generators & wholesale participants

  2. National wholesale market

    Centralised coordination · periodic forward auctions

  3. Single national wholesale price

    Network treated as a single copper-plate zone

  4. Balancing mechanism

    Separate mechanism, outside the main energy price

  5. Network operation

  6. Consumers & retailers

Supporting mechanisms (interact alongside, not sequential steps)

Contracts for Difference (CfD)Capacity MarketFlexibility marketsCarbon pricing
Solution section

Overview

A high-level introduction to the market architecture.

Overview

Great Britain's electricity market is a layered architecture built around a national wholesale electricity market.

Commercial energy trading is supplemented by a Balancing Mechanism, transmission constraint management, ancillary services, a Capacity Market, Contracts for Difference, regulated network charging and increasingly local flexibility procurement.

The architecture therefore addresses different physical, economic and policy requirements through a collection of interacting markets, contracts, charges and system-operator interventions.

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