The government is reportedly examining whether it could cut the link between electricity and gas prices in a bid to help households tackle soaring energy bills.
Currently, the UK’s energy system enables the wholesale cost of gas to determine the price of electricity.
Many analysts blame the skyrocketing gas prices for forcing several energy suppliers to exit the market and households facing fuel poverty.
In October, Ofgem expects its price cap to rise by approximately 42% to £2,800.
Sources claim that the government will consult on the reported options for market reform in the summer and no decisions have yet been made.
The Review of the Electricity Market Arrangements announced in the government’s Energy Security Strategy will aim to reduce the exposure to international gas prices.
A government spokesperson told ELN: “The high global gas prices and linked high electricity prices that we are currently facing have given added urgency to the need to consider electricity market reform.
“We are considering a range of market reform options to help bring down the cost of energy and will set these out in our summer consultation.”