Energy bills update: Millions of households could save £200 a year under new electricity proposal

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Energy bills update: Millions of households could save £200 a year under new electricity proposal.

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A new analysis from think tank Common Wealth suggests British households could see their annual electricity costs fall by as much as £200 if the Government overhauls how wholesale power is priced.The report argues that the current market structure remains anchored to an era when fossil fuels dominated generation, despite renewables and nuclear now contributing a far greater proportion of the nation's electricity supply.Common Wealth contends that reforming this outdated pricing mechanism would shield consumers from international gas market volatility while better reflecting the true cost of the cleaner energy sources increasingly powering British homes and businesses.Gas-fired power stations now generate roughly a quarter of the country's electricity, yet these plants continue to determine the marginal price for the entire market nearly 80 per cent of the time.This pricing anomaly means that even when households consume power from cheaper wind farms, solar installations or nuclear...

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