Question

To ask the Secretary of State for Energy and Climate Change, what estimate she has made of the effect on the wholesale price of electricity of an increase in low carbon generation.

DECC estimates that wholesale electricity prices were around £1/MWh lower (equivalent to £5 lower for an average household energy bill) in 2014 than they would have been in the absence of policies to incentivise investment in low-carbon generation, and reduce electricity demand. In 2020, wholesale electricity prices are estimated to be around £4/MWh lower (or £12 lower for an average household energy bill) than they would be in the absence of the same policies.1

[1] All figures are real 2014 prices. Source: https://www.gov.uk/government/publications/estimated-impacts-of-energy-and-climate-change-policies-on-energy-prices-and-bills-2014.