Reformed National Pricing Delivery Plan

Overview

The Department for Energy Security and Net Zero (DESNZ) is consulting on potential reforms to the Reformed National Pricing (RNP) siting and investment levers, including how these could be combined, as outlined in Chapter 2 of the RNP Delivery Plan.

It is important that these policy levers support delivery of the Strategic Spatial Energy Plan (SSEP) to reduce total system costs and consumer bills by influencing the location of new generation and storage projects in line with the SSEP’s requirements. This consultation therefore seeks views on potential reforms to the key siting and investment levers as part of RNP.

Please note that Ofgem (as the authority on Transmission Network Use of System Charges) has launched a Call for Input (closing on 26 May) setting out in more detail how the regulatory levers of network and connections charging could be reformed to align with RNP and support delivery of the SSEP. The Call for Input seeks views on additional design options and considers the treatment of legacy arrangements as part of the transition to any new regime. Feedback on these issues should be directed to the Ofgem Call for Input.

Please also note that, as referenced in Chapter 4 of the RNP Delivery Plan, the National Energy System Operator (NESO) published its Balancing and Settlement Call for Input (which closed on 14 April) as part of the wider RNP package. The focus was on reforming how the electricity grid is balanced, how power is dispatched and how settlements are calculated, and it considered issues separate from those raised in this consultation.

Why your views matter

We are primarily seeking stakeholder views on the questions included in this consultation. Stakeholder answers will assist in developing our future work in determining how these levers can be combined and to develop a comprehensive package of reforms.