Energy Market Reforms

Earl Russell Excerpts

Tuesday 4th November 2025 Lords Chamber

Asked by

[Earl Russell]

To ask His Majesty’s Government what further consideration they have given to the case for energy market reforms following their decision not to implement zonal pricing.

[The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Baroness Hayman of Ullock) (Lab)]

My Lords, the review of electricity markets arrangements has concluded. This Government have decided to retain a national electricity market pricing regime and have established a programme called reformed national pricing. The purpose of the new programme is to deliver a cohesive package of reforms to improve the efficiency of our future power system. We will publish further detail on the reformed national pricing later this year, which will give market participants and investors clarity on our approach.

[Earl Russell (LD)]

We still have some of the highest energy prices in Europe. Does the Minister agree with me that reducing the costs of energy for everyone has to be an absolute priority? What progress is being made on producing a clear programme to redistribute energy levies, and will the Government examine in detail the Greenpeace policy proposals to remove gas plants into a regulated asset base, which it is claimed could save £5.1 billion a year by 2028?

[Baroness Hayman of Ullock (Lab)]

Delivering lower bills and a secure energy supply for families and businesses is absolutely at the heart of what we are trying to achieve through these reforms, particularly with moving towards renewables—that homegrown renewable energy sprint, as we are calling it—in order to get where we can as quickly as we can. The quicker we reduce our reliance on fossil fuels, the more quickly we can reduce bills and do more about getting off the gas grid, which I think is at the heart of the noble Earl’s second question. Of course, the Government are always happy to look at contributions from different groups and NGOs, but the important thing is that we focus on that transition to renewable energies to bring those bills down.