Electricity: Prices
The question
To ask the Secretary of State for Energy Security and Net Zero, whether he has plans to review the use of marginal-cost pricing for wholesale electricity.
Answered by Michael Shanks
The second REMA consultation, published in March 2024, considered a range of options related to reform the market. Among other things, the previous government decided to retain marginal pricing across the wholesale market and to proceed with the rapid rollout of renewable generation via a CfD-type scheme. We believe we can achieve this through Clean Power 2030, which represents the best way to decouple gas and electricity prices and enable efficient electricity system operation.
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