Written Question·Department for Energy Security and Net Zero·UIN 35407

Electricity: Prices

Tabled: 4 March 2025
Answered: 12 March 2025
Named Day

Question

Pippa Heylings

Liberal DemocratSouth Cambridgeshire

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

Michael Shanks
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...

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