I refer the hon Member to the answer I gave to him on 7 March to Question UIN 16816.

Further to the question by my hon. Friend the Member for South West Bedfordshire (Andrew Selous) about the review of electricity market arrangements, I welcome the fact that we are, at last, getting to grips with the clunky old rules that add potentially hundreds of pounds to everyone’s energy bills. May I urge the Minister to go faster? This is chugging along at Whitehall speed, and we need urgent action to reduce energy bills soon.

The UK over-achieved against the first and second carbon budgets, and the latest projections show that it is on track to meet the third. The UK has halved its emissions, ahead of every other major economy.

The transitions set out in the Net Zero Strategy for every sector of the UK economy keep it on track for Carbon Budgets 4, 5 and 6, the 2030 Nationally Determined Contribution, and net zero by 2050.

A main driver of energy costs for consumers are movements in international gas prices. Prices have come down continually over the last 12 months, and the Default Tariff Cap is currently £1,928, which is less than half the level of this time last year when it reached £4,279 at the peak of the energy crisis. The Government is developing more home-grown sources of energy supply – including renewables – to reduce exposure to volatile international markets which, along with energy efficiency support for consumers, will help reduce energy costs.

As part of the Review of Electricity Market Arrangements (REMA) programme, the Government is considering a range of potential options to shield consumers from the impacts of potential future commodity price spikes and to ensure they benefit from renewables. The Government plans to publish a second REMA consultation in early 2024.

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

The main driver of trends in energy prices for domestic and business customers over the last 5 years has been movements in international gas prices, which determine the amounts charged for both domestically produced and imported gas. The Department publishes data on the UK's overall net imports, with separate data on imports of gas and other energy products, alongside energy prices. Developing more home-grown sources of energy supply – including renewables – will help reduce the exposure of UK energy prices to volatile international markets.

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

The Contracts for Difference scheme already insulates consumers against electricity price spikes. Over time, this scheme will significantly reduce dependence on fossil fuelled power generation, lowering consumer exposure to gas prices.

Domestic and industrial electricity prices for countries that are members of the International Energy Agency (IEA) are published in Quarterly Energy Prices tables 5.5.1 and 5.3.1 respectively.

Table 5.5.1: https://www.gov.uk/government/statistical-data-sets/international-domestic-energy-prices and Table 5.3.1: https://www.gov.uk/government/statistical-data-sets/international-industrial-energy-prices

Average electricity prices in the United States are among the lowest in the IEA, below those in the UK, and they have been one of the 5 countries with the lowest prices across the IEA since the mid-2000s. Electricity prices vary by locality in the United States based on the availability of power plants and fuels, local fuel costs, and pricing regulations.

The Government is committed to working with industry to keep costs down and deliver fair electric vehicle charging prices while also ensuring the financial health and attractiveness to investors of the sector . As part of this work, we are introducing regulations to improve the consumer experience across the public charging network. To ensure pricing transparency, these regulations will mandate use of a common pricing metric, allowing consumers to compare prices in a single format.

The Government assessed and consulted in August 2022 on options for the business model to deploy power Bioenergy Carbon Capture and Storage (‘BECCS’). A response was published in March 2023. The preferred approach for the business model was confirmed as being the ‘Dual CfD’, consisting of a ‘CfDe’ which values the electricity generated and a ‘CfDc’ which values the carbon stored and associated negative emissions. The UK ETS Authority has announced its intention to include engineered removals in the UK ETS, to incentivise investment and support deployment of these technologies. These technologies could include those within scope of the power BECCS business model. The Authority aims to carry out a further consultation in 2023.

At a time when the cost of generating electricity is falling thanks to the increasing use of renewables, my constituents do not understand why the price of electricity remains linked to the price of gas. I know that the Government are undertaking a review of electricity market arrangements. When might they expect to see a change?

The Government is building evidence to determine if blending meets the required safety standards and represents value for money, which will be essential for blending to be enabled. The Government is working closely with Ofgem and industry to explore options for a future billing methodology that could fairly incorporate hydrogen blends, protecting consumers in the process.

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.

The Heat and Building Strategy sets out the actions the Government is taking to reduce carbon emissions from buildings in the near term and provides a long-term framework to enable industry investment and deliver the transition to low-carbon heating.

The Government has also established the Energy Efficiency Taskforce, which aims to reduce the UK’s final energy consumption from buildings and industry by 15% by 2030 against 2021 levels. The Taskforce will deliver this by stimulating private investment and increasing green finance options, galvanising supply chains and increasing public and business engagement with energy efficiency. £6 billion of government funding will be available from 2025 to support this objective, in addition to the £6.6 billion allocated in this Parliament.

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

The CfD scheme already insulates consumers against electricity price spikes. Over time this scheme will reduce dependence on fossil fuelled power generation, lowering consumer exposure to gas prices.

As part of the Review of Electricity Market Arrangements (REMA) programme, the Government is considering a range of potential options to shield consumers from the

impacts of potential future commodity price spikes and to ensure they benefit from lower cost renewables.

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

As part of the Review of Electricity Market Arrangements (REMA), the Government is assessing the current set of regulatory arrangements for the price of wholesale electricity (among other aspects of the market). The Government will publish the conclusions of this assessment in the second consultation in the Autumn.

The Department for Energy Security and Net Zero does not forecast petrol and diesel prices. The Department does monitor trends in the global crude oil and related product markets.

The Department estimates a median monthly energy bill of £173 for private rental properties in England and Wales with an EPC C rating and £230 for properties rated EPC E. These estimates have been derived using gas and electricity meter-point consumption data from 2019, for a sample of properties that made up the department’s 2021 National Energy Efficiency Data publication. The prices of gas and electricity used are those associated with the current Energy Price Guarantee. Using the prices under Ofgem’s energy price cap from 1 July to 30 September 2023, median monthly energy bills would be £149 and £196, respectively.