Energy Market Reforms

Earl of Courtown Excerpts

Tuesday 4th November 2025 Lords Chamber

[Baroness Hayman of Ullock (Lab)]

I just mentioned battery storage, so that is a very appropriate question from my noble friend. As I said, over the summer we announced our decision not to introduce zonal pricing and, instead, to implement this ambitious package of reforms to improve the effectiveness of our current national pricing model. We will publish more detail later this year—including on the role of flexible assets such as storage and consumer-led flexibility in addressing constraints, because flexibility will be a critical part of lowering costs and achieving our clean power ambitions. We recently published the Clean Flexibility Roadmap, which contains a comprehensive, actionable plan for unlocking the kind of greater flexibility to which my noble friend refers.

[The Earl of Courtown (Con)]

My Lords, the decision not to implement zonal pricing will mean the continuation of payments to turn off wind farms when they produce excess power, which are projected to reach £8 billion by 2030. Given the scale of this, and following on from what the noble Baroness, Lady Winterton, asked, do His Majesty’s Government agree that they should focus their efforts on securing a baseload of energy by investing in nuclear power in order to offset the strain placed on wind farms?

[Baroness Hayman of Ullock (Lab)]

We need both. We need renewable energy—I have talked about including wind farms and solar, for example—but that baseload of nuclear power is also important. That is why we are also investing in nuclear and making commitments to nuclear power. It is about finding a balance and getting both, because we need to make sure that we have sustainable, secure energy for the future.