Link between energy prices are temporary

Linking electricity and gas costs can’t be the case forever.

That’s the approach from the Business Secretary who discussed earlier during a session of the Business, Energy and Industrial Strategy Committee about the government’s plans to provide further support for customers struggling to pay their energy bills.

“One of the things we are very keen to do in BEIS is to look at the pricing mechanism in the electricity market because it cannot be the case forever that we can link directly our electricity prices to gas prices when gas is only a portion of the electricity generating mix.” He announced.

A couple of days ago, the Prime Minister displayed the same issue and acknowledged it as one of the isues of the ongoing energy system.

“That is frankly ludicrous. We need to get rid of that system, we need to reform our energy systems as they have done in other European markets.” Boris Johnson implied.

“All our constituents are paying a price for electricity which is directly related to the module cost of gas production & you can see that in the system forty years ago, which was largely based on coal and gas that made sense, Mr Kwarteng went on to add.

“As we progress into the 2020s, we have a system in Britain, where we have a huge diversity of sources of power. So, the price you are paying does not reflect the actual cost of generation.”

Link between energy prices are temporary

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