Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what his planned timetable is for implementing reforms to decouple electricity prices from gas prices.

The Government plans to consult later this year on introducing a voluntary Wholesale Contract for Difference (CfD), which would offer existing eligible generators that aren’t already contracted under a CfD the option to seek to agree a fixed price for the electricity they generate, with an intention to run an allocation process in 2027. In addition, the Government has announced a 10% increase to the rate of the Electricity Generator Levy which will take effect from 1st July 2026, to respond to the high prices that generators are benefitting from at present due to the crisis in the Middle East.