We have published a decision paper, Review of instantaneous reserve markets project which sets out our decision to close out the project without pursuing any changes to the instantaneous reserve markets. On the basis of work completed to date, it is unlikely that the project will deliver long-term net benefits to consumers. Our decision reflects a reduced expectation and increased uncertainty about the benefits since we initiated the project, and a greater expectation of higher costs.

We recognise that the settings for instantaneous reserve may change in the medium-term, particularly in the context of the Government’s energy policy and the falling cost of emerging technologies. We will monitor the performance of the instantaneous reserve markets and reactivate the work if change is required. This may be in the form of a review of similar scope, or as a broader review of under frequency management.