In March 2015 we published a discussion paper, Options to improve retail competition - findings of the spot market review. The discussion paper considered five options to refine the spot market to further enhance retail and hedge market competition.

We have considered feedback on the discussion paper and decided to further explore two refinements to the spot market in 2015/16:

• options for settling on prices based on system conditions in real time

• options for adding or facilitating an hours-ahead market.

As part of the work on these refinements, we will consider the value of enhancing the accuracy of the inputs into the pricing process, such as wind and demand forecasts. We will not proceed with the refinements if the introduction of these enhancements would mean that there is no additional net benefit from proceeding to real time pricing or an hours-ahead market.

This approach provides optionality and enables us to maintain momentum to ensure spot market arrangements are not a barrier to greater consumer participation in the future, and to cater appropriately for all forms of generation.