Decoupling Electricity and Gas Prices 2025-06-10
2025-06-10
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Response quality
Questions & Answers
Q1
Direct Answer
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Context
The MP referenced the high energy costs during a cost of living crisis, noting that new solar is 11% cheaper than the lowest-cost fossil fuel and onshore wind is 39% cheaper.
New solar is 11% cheaper than the lowest-cost fossil fuel, and onshore wind is 39% cheaper, yet the marginal pricing system that ties electricity costs to the market price of gas has resulted in British consumers enduring the fourth-highest global energy prices during a cost of living crisis. Does the Minister agree that decoupling electricity prices from the gas market is essential if consumers are to enjoy lower-cost energy?
I thank the hon. Gentleman for his expertise in this area, which he often brings to the House. He is absolutely right that decoupling from volatile and expensive gas prices is critical, and the journey we are on to develop clean power by 2030 will do that. Our objective is to deliver a clean power system where gas only provides the back-up, rather than setting the price, as it currently does.
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Assessment & feedback
Response accuracy
Q2
Partial Answer
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Context
The MP asked about the benefits of having an energy social tariff to protect customers from volatile oil and gas prices during reforms.
While we shift and undertake that reform, has the Minister considered the benefits of having an energy social tariff, to protect customers now from those volatile oil and gas prices, and to prepare them for a cleaner, better and reformed energy market in the future?
I always agree with my hon. Friend, but on her initial point, I probably do not. I am not sure that we do all agree in this House that we should remove the volatility of fossil fuel prices. Some want us to remain linked to fossil fuels for longer and longer. We are determined to remove that vulnerability from people’s bills, so that we do not face the price spikes that many families still struggle with.
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Assessment & feedback
Specific consideration of an energy social tariff was avoided
I Am Not Sure That We Do All Agree In This House
Response accuracy
Q3
Partial Answer
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Context
The MP questioned the Energy Secretary's proposal to remove green taxes from electricity bills, noting it would be a net tax rise for households.
The Energy Secretary has said that there is a “principled case” for removing green taxes from electricity bills, and the cost being met by increases in green taxes on gas bills. That would be a net tax rise for every household—80% of the country—that uses gas. This was not an argument that he made before the election, so can the Minister take this opportunity to rule out any increase in taxes, charges or levies on gas bills?
On the Government Benches, we are trying to cut people’s bills as quickly as possible. The hon. Gentleman was a core part of a Government who failed to do that for many years.
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Assessment & feedback
Specific ruling out on gas bill increases was not addressed
On The Government Benches, We Are Trying To Cut People’S Bills As Quickly As Possible
The Hon. Gentleman Was A Core Part Of A Government Who Failed To Do That For Many Years
Response accuracy