Energy: Prices
The question
To ask the Secretary of State for Energy Security and Net Zero, what assessment he has made of the potential impact of decoupling electricity prices from wholesale gas prices on household energy bills.
Answered by Michael Shanks
As unabated gas generation is displaced and transitions to a reserve role, wholesale electricity prices will increasingly decouple from the price of gas. Accelerating the deployment of renewable generation, as we are through our Clean Power 2030 Mission, will reduce the frequency with which gas sets the marginal price, helping to rapidly decouple electricity from gas prices without the need for more complex arrangements. This will in turn reduce consumer exposure to volatile international gas prices.
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