UK government to propose electricity price changes in clean power push

The article notes that Northern Ireland operates within a separate energy market from Great Britain.

Reform UK and the SNP were contacted for comment regarding the government’s proposals.

Shadow energy secretary Claire Coutinho criticised the plan, saying it piles costs onto electricity bills. She argued that if electricity is to be used, it must be cheap. Liberal Democrat energy spokesperson Pippa Heylings urged the government to act to decouple electricity from gas prices. Green Party energy spokesperson Carla Denyer welcomed the plans but accused the government of delays. Plaid Cymru’s Llinos Medi welcomed the changes but urged the government to go further.

Miliband will announce plans to amend planning laws to make it easier for those without a driveway to charge electric cars and to enable more businesses to install solar panels.

On Tuesday, the chancellor could announce increases to the windfall tax on electricity generators. The tax applies to some generators with older contracts that would otherwise profit when gas prices spike, and the government hopes this will incentivise a voluntary switch to fixed-price contracts.

The government would shift older clean energy projects—accounting for about one-third of Britain's generation—onto fixed-price contracts to reduce exposure to gas-price spikes and bring them in line with newer renewable developments. The change would be subject to consultation and is expected to be in place within about a year.

In a speech, Miliband is expected to say that clean energy is essential for financial security, energy security and national security, and will call for the government to 'double down' on its clean power push, arguing that action must be faster, deeper and more wide-ranging in response to the war in the Middle East and climate change.

Chancellor Rachel Reeves and Energy Secretary Ed Miliband are to deliver separate statements on the plan on Tuesday, outlining the government’s approach to decoupling electricity prices from gas market fluctuations and detailing the proposed timetable.

Britain's government announced a plan to weaken the link between electricity prices and volatile gas prices, aiming to better protect consumers from energy shocks triggered by international conflicts. The plan would move some older renewable energy generators to fixed-price contracts rather than payments tied to gas prices, and is expected to be implemented within about a year after consultation. Older renewables account for about one-third of generation; the government has not put a firm savings figure on bills, but says the changes could be significant.