Prime Minister Liz Truss has said that the government plans to reform the electricity market to lower consumer bills. Truss told Parliament that the current system, in which the marginal cost of gas sets prices, is unfair to renewable and nuclear generators. She said that moving these generators onto lower-priced contracts would save money for consumers.
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The government is still exploring the details of this reform, but it is clear that they are committed to finding a way to reduce energy bills for families and businesses across the country. This is welcome news for those struggling to keep up with rising costs.
The government has already taken steps to reduce energy bills, such as introducing a cap on standard variable tariffs. However, more must be done to ensure that prices are fair and affordable for all.
The government\’s plans for reform are still in the early stages, but this is a welcome sign that they are committed to making energy more affordable for everyone. We will monitor the situation closely and report any further developments.
Liz Truss: We\’re going to reform the electricity market to cut your bills
Prime Minister Liz Truss has said that the government plans to move nuclear and renewable electricity generators to lower price contracts to cut bills.
\”Renewable and nuclear generators will move on to contracts for difference, to end the situation where the marginal price of gas sets electricity prices,\” Truss told Parliament.
The most costly generator often sets the price paid to these companies.
That is currently hugely expensive gas.
Moving nuclear and renewable generators onto lower-priced contracts \”will mean that generators are receiving a fair price reflecting their cost of a generation\”, Truss said.
In addition, the government is also considering other reforms to the electricity market, such as changes to how capacity payments are calculated.
These changes could lead to further savings for consumers. The government will consult energy companies and other stakeholders on these proposals in the coming months.
The government\’s plans for reform are welcome news for those struggling to keep up with rising energy bills. However, any reform must be designed in a way that does not put an undue burden on energy companies or discourage investment in new generation capacity.
We will monitor the situation closely and report any further developments.
What do you think of the government\’s plans for reform? Let us know in the comments below.
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