Government may cut links between electricity and gas prices
The UK government is reportedly analysing whether it could cut the link between electricity and gas prices in a bid to help households tackle high rising energy bills.
Currently, the UK’s energy system implements the wholesale cost of gas to determine the costs of electricity.
Lots of analysts criticize the skyrocketing gas prices for forcing multiple energy suppliers to exit the market and households facing fuel poverty.
In October, Ofgem expects its price cap to rise by approximately 42% to £2,800.
Sources allege that the government will discuss on the reported options for market transformations in the summer and no decisions have been made thus far.
The Review of the Electricity Market Arrangements declared in the government’s Energy Security Strategy will aim to reduce the exposure to international gas prices.
“The high global gas prices and linked high electricity prices that we are currently facing have given added urgency to the need to consider electricity market reform. Said a government spokesperson.
“We are considering a range of market reform options to help bring down the cost of energy and will set these out in our summer consultation.”
Government may cut links between electricity and gas prices
