Electricity Pricing Reform Assessment

Ofgem is seeking a supplier to assist with the Cost Allocation and Recovery Review (CARR), which aims to understand how different electricity pricing arrangements can impact consumer outcomes and overall system costs. The project focuses on quantifying how changes in electricity demand—both in total volume and usage patterns—affect costs across generation and network systems. The supplier will develop a system model to analyze how potential shifts in domestic electricity demand, influenced by pricing reforms, could lead to significant changes in investment needs, operational costs, and network enhancements. This analysis will help Ofgem assess the broader impacts of pricing reforms on the electricity system in Great Britain, beyond just immediate dispatch changes.