Energy Prices

Baroness Hayman Excerpts

Wednesday 26th March 2025 Lords Chamber

[Baroness Hayman (CB)]

My Lords, I declare my interests as set out in the register. The market for electricity in this country is obviously a very complicated one, but Ofgem made it clear in the announcement of the recent price increases that the link with international gas prices is influencing the current rise in the cost to consumers. Can the Minister assure me that, as we move to that clean power system, the REMA review that he mentioned will look at whether delinking the overall UK market from the price of natural gas internationally would be in the best interests of consumers?

[Lord Hunt of Kings Heath (Lab)]

My Lords, that is an interesting comment, and the noble Baroness is of course absolutely right. Our problem is that we are tied to international gas prices, and noble Lords who are fixated on our using even more gas need to consider the implications of that. We are looking at how future gas market networks would work in a situation where gas is used much more infrequently. On marginal pricing, the more we use renewables, the less we are concerned about the international market. The contract for difference limits enable us to pay the renewable developers at a price that has already been agreed, rather than worrying about what the international price market will be.