Electricity market review to provide cheaper prices

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The government is considering options to reform how the price of electricity is set.

The government is considering options for reforming the way the price of electricity is set for households.

Prices are set to rise further this year, with experts at Cornwall Insight predicting average bills could leap to £3,245 in October and then further to £3,364 at the start of next year. The government said it was consulting on plans for suppliers to introduce incentives for consumers to "draw energy from the grid at cheaper rates when demand is low" or it's particularly sunny and windy, which would enable houses to save money on bills.

The government has pledged to slash its use of gas and other fossil fuels imports as part of efforts to improve energy security, but also to transition towards putting less carbon into the atmosphere. Often the government add those costs onto all our energy bills, as extra systems charges, or green levies. But right now, millions of people wouldn't be able to manage an extra energy charge, even when the outcome would be cheaper bills in the long-term.

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