Written Question·Department for Energy Security and Net Zero·UIN 30591

Electricity: Prices

Tabled: 11 February 2025

Answered: 24 February 2025

Named Day

Question

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

Michael Shanks

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 ...

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