Oil & Gas

28 Jun 2022

UK’s Electricity Market Braces for the Biggest Shake-up of the Last 30 Years

28 Jun 2022  by   

Image: Shutterstock

Boris Johnson has signalled the biggest reform of the UK’s electricity market since its privatisation 30 years ago.

Speaking on BBC Radio 4’s Today programme, the Prime Minister said: “At the moment, one of the problems is that people are being charged for their electricity prices on the basis of the top module gas price.”

Currently, the UK’s energy system enables the wholesale cost of gas to determine the price of electricity.

Boris Johnson went on to say: “And that is frankly ludicrous. We need to get rid of that system, we need to reform our energy systems as they have done in other European markets.

“So, that is one of the ways, by reforming the market, by changing the way things work, that you can get prices down, you can bear down on costs.”

The government’s plan to sever the tie between electricity and gas prices was reported by ELN two weeks ago.

Last week, analysts predicted that the default tariff cap will be £2,980 in October and £3,003 in January 2023.


More News