Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what assessment he has made of the potential merits of decoupling electricity and gas prices.

The existing Contracts for Difference (CfD) scheme has been successful in bringing forth new renewable assets at fixed, competitive prices. CfDs are already beginning to decouple electricity and gas markets, protecting consumers from gas price volatility.

However, Government wants to go further and offer eligible legacy low-carbon generators new fixed price contracts, known as Wholesale CfDs. This will help speed up decoupling and protect families and businesses from higher electricity bills when gas prices increase. We plan to consult on this policy later in the year and all impacts will be scrutinised and assessed as the policy develops, with contracts being offered only where they deliver clear value for money for the consumer.