Electricity and Natural Gas: Prices

(asked on 17th July 2025) - View Source

Question to the Department for Energy Security & Net Zero:

To ask His Majesty's Government what assessment they have made of decoupling electricity and gas prices.


Answered by
Lord Wilson of Sedgefield Portrait
Lord Wilson of Sedgefield
Lord in Waiting (HM Household) (Whip)
This question was answered on 29th July 2025

As unabated gas generation is displaced and transitions to a reserve role, wholesale electricity prices will increasingly decouple from the price of gas. Accelerating the deployment of renewable generation, as we are through our Clean Power 2030 Mission, will reduce the frequency with which gas sets the marginal price, helping to rapidly decouple electricity from gas prices without the need for more complex arrangements. This will in turn reduce consumer exposure to volatile international gas prices.

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