Government to propose electricity price changes in clean power push
Summary
The government plans to change how electricity prices are set, aiming to reduce the impact of rising gas costs on energy bills by moving some older renewable energy producers to fixed-price contracts. This change is expected within about a year and is part of a larger effort to promote clean energy and protect consumers from price spikes caused by fossil fuel markets.Key Facts
- The government will propose weakening the link between electricity prices and gas prices to protect consumers.
- Older renewable energy projects will be shifted to fixed-price contracts instead of prices tied to gas.
- This change aims to reduce sudden electricity bill increases when gas prices rise.
- Renewable energy already generates a large share of electricity but current pricing ties bills to gas costs.
- About one-third of Britain's electricity comes from older renewable projects targeted by the change.
- The plan will be subject to public consultation and could be implemented in about a year.
- The government may increase the windfall tax on some electricity generators to encourage switching contracts.
- Additional proposals include easier planning rules for electric car chargers and more solar panel installation by businesses.
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