Energy UK has responded to the proposal from the Electricity System Operator (ESO), expressing concerns about potential disadvantages for suppliers in the Local Constraint Market (LCM).
The proposal suggests an alternative price adjustment mechanism, prompting Energy UK to highlight concerns about potential supplier losses and the complexity of incremental changes.
The trade association has emphasised the importance of broader industry discussion to ensure a fair approach and suggests further review by regulatory bodies to address wider issues comprehensively.
Energy UK said: “Members did not agree that the change would be neutral but instead one that risked disadvantaging suppliers.
“One party being disadvantaged by the actions of another in this way was viewed as counter to the principle of balance responsibility. For this reason and the reasons set out below, Energy UK does not support the proposal.”
