UK Government Introduces Measures to Decouple Gas and Electricity Prices Amid Rising Energy Costs
The UK government has announced new measures aimed at reducing the dependency of electricity prices on gas prices, a system known as 'marginal pricing.' This decision comes in response to the ongoing energy crisis exacerbated by the Iran War, which has driven global energy prices higher. Prime Minister Keir Starmer emphasized the need to stabilize energy bills and reduce the financial burden on households. The measures include offering voluntary, long-term fixed contracts to low-carbon electricity generators, which currently supply about one-third of Britain's power. These contracts are designed to provide a fixed price for electricity, ensuring stability for both consumers and producers. Additionally, the government plans to increase the Electricity Generator Levy from 45% to 55% for those who do not participate in these contracts. This levy applies to nuclear, legacy renewables, and gas generators. 
