Electricity market shake-up ‘could save £5bn’

Energy bills for businesses and households could be significantly cut by overhauling the electricity market, according to a report.

The Greenpeace-commissioned study said removing gas plants from the wholesale electricity market and placing them into a strategic reserve would stop expensive gas from setting electricity prices.

It said total household electricity bills could fall by as much as £1.7bn a year by 2028, and by £3.3bn for businesses and industry under the proposed changes.

Greenpeace UK’s political campaigner, Angharad Hopkinson, said: “It’s absurd that we still allow expensive and volatile gas to set the price we pay for electricity.

“Renewable energy, like wind and solar, is cheaper than gas, its prices are far more stable, and we’re producing more and more of it every year in the UK. But because the energy system is rigged in favour of the gas industry – keeping prices and their profits high – our bills have soared and we’re not reaping all of the benefits clean power brings.”