Electricity: Prices
Commons · Question 30591 · Tabled 11 Feb 2025 · Department for Energy Security and Net Zero · Official record
Answered 24 Feb 2025
Question
Asked by Grahame Morris
To ask the Secretary of State for Energy Security and Net Zero, what assessment his Department has made of the potential impact of the marginal pricing system on consumer electricity bills.
Answer
Answered by Michael Shanks, 24 Feb 2025
With marginal pricing, the price of electricity is set by the last technology needed to meet overall demand. The marginal price reflects the value of generating an additional unit of electricity at any given time. This ensures that generators increase or ...