Energy Market Transaction Model (EMTM)

This project will develop a whole‑energy‑market impact analysis model that equips NESO with the capability to trace consumer energy costs across the electricity and gas markets and understand the interactions among the key entities involved. The model addresses a current capability gap, as existing NESO tools do not provide an integrated view across power and gas, limiting NESO’s ability to evaluate consumer value, system resilience, and security of supply implications. Lessons learned from this project will enhance NESO’s capacity to understand and assess distributional impacts and support more informed future NESO’s actions and policy recommendations.

The project development will involve targeted engagement across key internal functions and selected external partners. Expected outputs include a feasibility study and prototype model demonstrate feasibility and scalability.

Benefits

The outcomes of this project will deliver benefits from the following four perspectives:

Capability: visibility of the entire transaction flow and the interrelationship between entities in the whole energy market (electricity + gas market).
Consumer value impact and empower decision-making: the developed model would allow NESO teams to understand and visualise how actions and policy suggestions could impact consumers. Also, would enhance understanding of the transaction flows from consumer bills to final recipients and the interactions among key entities in the energy market
Adaptability: The developed model is both adaptable and responsive, ensuring that it can continue to provide valid results by allowing for adjustments to inputs under future market design options.
Efficiency gains: This model could better support NESO in visualising and analysing the potential effects of various policies on consumer bills.

ENA smarter networks portal