Written question asked by Fleur Anderson (Labour) on Tuesday, 20 June 2023, in the House of Commons. It was due for an answer on Thursday, 22 June 2023. It was answered by Graham Stuart (Conservative) on Wednesday, 28 June 2023 on behalf of the Department for Energy Security and Net Zero.
Electricity and Renewable Energy: Prices
- Question
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To ask the Secretary of State for Energy Security and Net Zero, what assessment he has made of the implications for his policies of reports that gas prices determine the cost of (a) electricity and (b) renewable electricity prices.
- Answer
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Like all commodities markets globally, the UK's wholesale electricity market works through marginal pricing, where the price is set by the additional unit needed to meet overall demand. This provides a signal of the value of consuming or generating an additional unit at any given time, on which both operational and investment decisions can be made.
As part of the Review of Electricity Market Arrangements (REMA) programme, the Government is considering a range of potential options to maintain the benefits of marginal pricing, while shielding consumers from the impacts of potential future commodity price spikes and ensuring they benefit from lower cost renewables.
Secondary information
- Type
- Written question
- Reference
- 190490
- Session
- 2022-23
- Subjects
- Electricity Natural gas Prices Renewable energy
- Link
- View this Written question on www.parliament.uk
Librarians' tools
- Timestamp
- 2023-06-28 11:42:45 +0100
- URI
- http://data.parliament.uk/writtenparliamentaryquestion/commons/2022-23/190490
- In Indexing
- http://indexing.parliament.uk/Content/Edit/1?uri=http://data.parliament.uk/writtenparliamentaryquestion/commons/2022-23/190490
- In Solr
- https://search.parliament.uk/claw/solr/?id=http://data.parliament.uk/writtenparliamentaryquestion/commons/2022-23/190490