Department for Energy Security and Net Zero written question – answered at on 17 April 2026.
Gill German
Labour, Clwyd North
To ask the Secretary of State for Energy Security and Net Zero, what assessment he has made of the potential impact of wholesale electricity prices being set by the marginal cost of gas generation on the extent to which consumer Bills reflect lower-cost renewable generation.
Michael Shanks
Minister of State (Department for Energy Security and Net Zero), Minister of State (Department for Business and Trade)
Marginal pricing incentivises the cheapest sources of energy production to provide as much power as possible, more expensive producers are only used when it is necessary to meet demand.
The real problem is that we rely too much on volatile fossil fuels – and the solution is our clean power mission: upgrading our grid while accelerating the rollout of clean, homegrown energy, so the price of electricity is instead set by clean power that we control.
Every wind turbine we switch on and solar panel we deploy helps reduce our exposure to volatile fossil fuel markets.
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