Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, whether his Department has taken recent steps to decouple the cost of renewable energy from gas prices; and whether his Department plans to publish a consultation on (a) the split markets model, (b) the green power pool and (c) other options for splitting the gas and renewables markets.

Through the Review of Electricity Market Arrangements (REMA) programme, the Government is considering a range of options to shield consumers from the impacts of potential future commodity price spikes and ensure they benefit from lower cost renewables.

The first REMA consultation included the ‘split market’ and ‘green power pool’ models. As detailed in the summary of responses, these options remain under consideration. The intention is to publish a second consultation in Autumn 2023.

The CfD scheme already insulates consumers against electricity price spikes. Over time this will significantly reduce dependence on gas-fired generation, lowering exposure to gas prices.