UK Energy Secretary hints at splitting electricity and gas prices

Grant Shapps has unveiled plans to eliminate “distortions” in the energy market, a move that could result in a £100 reduction in electricity bills

Big Zero Report 2022

Energy Security and Net Zero Secretary of State Grant Shapps has announced that the government will unveil its plans to decouple gas and electricity prices later this week.

The move, which seeks to address the “distortions” in Britain’s energy market and reduce the burden on consumers, has been eagerly awaited by industry insiders and consumer groups alike.

By separating the prices of gas and electricity, the government hopes to create a more transparent and competitive market, ultimately leading to lower bills for households.

Writing in the Sun on Sunday, Energy Secretary Grant Shapps revealed: “On Thursday, we will also commit to addressing the imbalance between gas and electricity costs in household bills, to make electricity cheaper for the long term.

“I want to remove the distortions in the energy market and this could take £100 off your electricity bill.”

Ministers are considering a proposal to reduce green taxes on electricity bills, which currently account for around 12% of the total cost and add up to £119 per year for the average household.

By contrast, the corresponding levies on gas bills are much lower, at just 3.4% or £33 per home.

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