I signed a parliamentary motion calling on the Government to urgently take control of electricity prices by decoupling the price of gas from electricity.
Another global fossil fuel price shock is once again threatening to send bills for households and businesses through the roof. Given that people across the country are already struggling to make ends meet, it is unacceptable that they are once again facing another devastating spike in the cost of essentials.
The current ‘marginal pricing system’ means that gas-fired power stations always set the price of energy, even though a significant share of our electricity comes from cheaper renewables. This leaves UK households at the mercy of global gas price fluctuations.
By breaking the link between gas prices and electricity, the Government can better protect households from the devastating impacts of global energy price spikes.
The motion reads:
“That this House notes with alarm that another global fossil fuel price shock is once again threatening to send bills for households and businesses through the roof, equal to or worse than the price surge seen after Russia’s invasion of Ukraine; believes that when people across the UK are already struggling to make ends meet, it is unacceptable that they are once again facing another devastating spike in the cost of essentials; further notes that the UK is particularly at the mercy of global gas price fluctuations because of our marginal pricing system, meaning gas-fired power stations almost always set the price of electricity in the UK, even though a significant share of our electricity comes from cheaper renewables; further believes that by breaking the link between gas prices and electricity, the Government can better protect households from the devastating impacts of global energy price spikes; welcomes proposals published by Common Wealth, and Greenpeace and Stonehaven, on how the Government can do this; and calls on the Government to urgently take control of electricity prices by decoupling the price of gas from the price of electricity.”
Read the full motion here: link