Written Question·Department for Energy Security and Net Zero·UIN 34129
Electricity: Prices
Tabled: 26 February 2025
Answered: 7 March 2025
Question
Dr Ellie Chowns
Green Party — North Herefordshire
To ask the Secretary of State for Energy Security and Net Zero, for what reason the Government uses the marginal cost pricing system for electricity.
Answer
Michael ShanksThe wholesale electricity market, like most commodity markets worldwide, is based on marginal pricing. This reflects the value of consuming or generating an additional unit of electricity at any given time and ensures that generators increase or decrease ...
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