Commons Sense

House of Commons · Ministers' Questions

Decoupling Electricity and Gas Prices

Tuesday 10 June 2025 · 3 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 1 Partly answered 1 Not answered 0

Key points

  • Ministerial Questions addressed the issue of decoupling electricity and gas prices.
  • Edward Morello highlighted the cost-efficiency of renewable energy and the need for decoupling from gas prices.
  • Ms Polly Billington inquired about the feasibility of an energy social tariff to protect consumers during the transition to a cleaner energy market.

Topics (select to filter)

Questions & Answers

Q1 Edward Morello Lib Dem West Dorset
Climate Energy
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.

Question

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?

Answer from The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Michael Shanks)

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.

Answered
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Q2 Polly Billington Lab East Thanet
Energy
Context

The MP asked about the benefits of having an energy social tariff to protect customers from volatile oil and gas prices during reforms.

Question

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?

Answer from The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Michael Shanks)

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.

Partly answered

Not addressed: Specific consideration of an energy social tariff was avoided

How: I Am Not Sure That We Do All Agree In This House

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Q3 Nick Timothy Con West Suffolk
Energy
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.

Question

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?

Answer from The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Michael Shanks)

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.

Not addressed: Specific ruling out on gas bill increases was not addressed

How: 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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