Why are UK electricity prices linked to gas – and what does it mean for energy bills?

Government has shaken up the way electricity is priced as British costs are among the highest in the world

• Electricity generators threatened with higher windfall taxes in bid to ensure stable prices

The second global energy crisis of this decade has reignited questions about Britain’s grid strategy, specifically: why does it continue to have one of the most expensive electricity markets in the world?

Despite the growing role of domestically generated renewable power, electricity wholesale prices in the UK have more than doubled since the war in Iran triggered a global squeeze on seaborne gas shipments from the Gulf.