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 effectiveness of the Contracts for Difference scheme in decoupling wholesale electricity prices from gas price volatility for household consumers.

The Contracts for Difference (CfD) scheme has been successful in bringing forth new renewable assets at fixed, competitive prices. AR7 was the most successful round ever and secured 14.7 GW of new clean energy. CfDs are already beginning to decouple electricity and gas markets, protecting consumers from gas price volatility.

However, as announced in April, we plan to go further and faster on delinking by offering legacy low carbon assets, around 30% of the market, the opportunity to move onto a fixed price CfD. These contracts will only be offered where they deliver clear value for money for consumers.