Richard Neudegg, director of regulation at Uswitch.com, comments: “Household electricity bills can be held hostage by market gas prices because of how the wholesale market works, which can cause real pain in periods of market shock, which we have seen during global conflicts like Ukraine and now Iran.
“Weakening and eventually breaking the link between the cost of gas and the price we pay for electricity is an important goal for the government, but that doesn’t mean it will be easy or quick to do.
“Moving older renewable energy generation onto fixed-price contracts will make a difference, but these generators will have to be encouraged to make this shift voluntarily.
“Amending the taxes on electricity generators' profits in situations where the gas price is high might convince some generators to agree new pricing arrangements, or at least give the government more funding to help out vulnerable households
“We welcome these moves as a step towards bringing down energy prices, but households can’t bank on this happening quickly. For most households, the best way to cut their bills right now is to ditch the price cap and get a decent fixed-rate deal, protecting themselves from bill hikes ahead of winter.”
For more information
Rianna York | Energy PR Manager
rianna.york@rvu.co.uk
Twitter: @UswitchPR
