#1
#1 out of 1
business12h ago
Public procurement of electricity could save GB households £200 a year, says thinktank
- New UK energy idea would have the government buy most electricity in England, Scotland and Wales to cut consumer bills.
- Experts say de-linking gas and electricity prices could help, but may not be enough without broader market reform.
- The plan includes paying generators via public power purchase agreements and a strategic gas reserve.
- If prices stay high, five-year savings could reach up to £74 billion in total.
- If the energy shock subsides, savings could drop to about £41 billion.
- Household annual savings could average about £185 under mid-range price assumptions.
- The chancellor plans windfall taxes on excess profits to support struggling households.
- Critics say the proposed changes do not go far enough to lower overall costs.
- The report envisions replacing current price-setting with fixed-price, cost-based contracts.
- The policy would treat gas and renewables differently in the price-setting process.
Vote 0