Electricity: Prices

(asked on 18th July 2022) - View Source

Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what estimate he has made of the number of energy companies who have increased their electricity prices for customers with a renewable energy tariff in response to the general rise in energy costs.


Answered by
Greg Hands Portrait
Greg Hands
Minister of State (Department for Business and Trade)
This question was answered on 25th July 2022

The Government does not set electricity prices, because setting tariffs is a commercial decision for suppliers, within the constraints of the price cap.

The Government has recently published a consultation setting out options as part of its Review of Electricity Market Arrangements (REMA). REMA is considering how the role of gas as a price setter for electricity could be reduced. This will include examining reforms for helping bring forward investment in low carbon generation, leading to less frequent use of gas so that it sets the price of electricity for shorter periods, as well as wholesale market reform options that could help to reduce the link.

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