Electricity: Prices
Commons · Question 35407 · Tabled 4 Mar 2025 · Department for Energy Security and Net Zero · Official record
Answered 12 Mar 2025
Question
Asked by Pippa Heylings
To ask the Secretary of State for Energy Security and Net Zero, whether he plans to take steps to decouple electricity prices from the wholesale gas price.
Answer
Answered by Michael Shanks, 12 Mar 2025
The electricity market in GB operates on the principle of marginal pricing, whereby the price of electricity is set by the last technology needed to meet overall demand. In the current market, gas prices often set the wholesale electricity price because i...