Electricity: Prices
The question
To ask the Secretary of State for Energy Security and Net Zero, what steps he is taking with Cabinet colleagues to help reduce electricity prices.
Answered by Martin McCluskey
At the Autumn Budget, we committed to taking money off energy bills to tackle the cost of living. The measures taken reduce the cost of electricity and therefore benefit all households with a domestic electricity meter. The two actions we took are (a) Removal of ECO home insulation scheme; and (b) Moving 75% of the domestic costs of the Renewables Obligation to the Exchequer from April 2026/27-28/29. These actions are designed to provide immediate savings for households, support the transition to clean energy, and ensure that future investments in the energy system are funded in a way that is fair and sustainable.
In addition, we will bring forward plans later this year to offer legacy low carbon generators, which provide about a third of our power today, the option of fixed price arrangements, with an intention to run an allocation process in 2027. This will be a voluntary decision for those generators. This will help protect families and businesses from higher bills when gas prices spike, with contracts offered only where they deliver clear value for money for consumers.
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