L

Lord Vaux of Harrowden (CB)

Speaking in the House of Lords on 16 June 2025

Debate

Social Energy Tariff

Contribution

My Lords, one of the main reasons why electricity prices are so high is the bizarre way the wholesale market works. If I need to buy 10 pints of milk, so I go to my supermarket, where they are 95p each but it has only nine, and then buy the 10th pint from the corner shop for £2, I do not have to go back to the supermarket and pay the difference so that all 10 cost me £2 each. That would clearly be insane. But that is exactly how the electricity wholesale market works. Does the Minister agree that that is mad and that it is time we stopped setting the wholesale price at the highest cost generator in each half-hourly trading slot?

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