L

Lord Spellar (Lab)

Speaking in the House of Lords on 6 May 2025

Debate

Energy Prices: Energy-intensive Industries

Contribution

But, my Lords, the fundamental flaw in the pricing system introduced at the time of privatisation is that the average price of electricity was determined by the marginal price of the last kilowatt, which is normally produced by gas and, as the Minister rightly said, is therefore driven by international gas prices. That is not a law of physics or engineering but a political decision. Should we not be examining that to rebalance the pricing system to the benefit of industry and indeed consumers?

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