Question

To ask the Secretary of State for Energy and Climate Change, with reference to Energy companies' Consolidated Segmental Statements 2009 to 2014, what assessment she has made of the reasons why the cost of hydro-electricity to Highland and Island consumers has risen in tandem with gas prices although the cost of producing hydro-power has not changed.

The retail price that consumers pay is determined by a number of elements, including the wholesale price of electricity across GB, which is set in the wholesale market. The wholesale market price is usually determined by electricity produced by gas plants. Therefore even if hydroelectricity has lower costs, consumers across the country face electricity prices that are correlated with the gas price.