Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what information he holds on the potential consequences of reforming the electricity market to decouple the price of electricity from the price of gas through changes to the current marginal pricing system.

The Government has assessed the possible impacts of electricity market reform via the Review of Electricity Market Arrangements. Last year, it was confirmed that Great Britain will continue with a single, national wholesale electricity market using marginal pricing. Rather than fundamentally separating electricity prices from gas, the Reformed National Pricing Delivery Plan prioritises targeted reforms to reduce consumer costs while maintaining a secure, affordable and efficient electricity system. Key measures include better siting and investment signals, reduced network constraint costs, and more effective balancing. The Delivery Plan includes an assessment framework and will be underpinned by analysis and evidence.