Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what assessment his Department has made of the potential impact of the marginal pricing system on consumer electricity bills.

With marginal pricing, the price of electricity is set by the last technology needed to meet overall demand. The marginal price reflects the value of generating an additional unit of electricity at any given time. This ensures that generators increase or decrease their output to meet demand and incentivises them to make efficiency improvements to remain competitive in electricity markets and keep costs down for consumers.

As part of the Review of Electricity Market Arrangements (REMA) programme, the Government is also considering what further steps can be taken to protect consumers from the impacts of potential price spikes.