The government plan to de-link gas and electricity prices will have a modest effect – more promising are plans on EVs and heat pumps
It’s a holy grail of UK energy policy – de-linking gas and electricity prices. After all, we’ve been told endlessly that one reason why our energy bills are so high is because “gas sets the price of electricity”. And here it comes: “decisive action” from the government to “break the link”. So, tell us, by how much can we expect bills to fall?
Energy secretary Ed Miliband and colleagues didn’t offer even a tentative answer. The big announcement was a prediction-free zone on bills for two reasons. First, because the outcome won’t be clear until older wind and solar projects with legacy subsidies, the target of the reform, have been shuffled on to fixed-price contracts next year with a prod from the chancellor in the form of a higher rate of windfall tax if they stay on their current set-up.
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