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UK To Decouple Power Prices From Gas And Raise Windfall Tax

Ministers say the shift will protect households from price spikes.

Overview

  • The government, which set out the plan Tuesday, will push more wind and solar operators onto fixed-price contracts to stop gas-driven swings from setting household bills.
  • Ministers will raise the energy windfall tax to 55% from 45% to nudge producers toward those long-term deals, according to l’Opinion.
  • Public brownfield, industrial and railway land will open for large solar and wind sites, aiming to unlock up to 10 GW of capacity that officials say could power about five million homes.
  • The plan targets the market rule that lets the last gas plant dispatched set the price for all power, with a goal of breaking that link.
  • Ed Miliband also pledged faster permits and grid hookups and simpler home installs for EV chargers, rooftop solar and heat pumps, while keeping a stance against broad new North Sea licenses except for limited output from existing fields.