What is the core policy proposal Rachel Reeves and Ed Miliband are advancing regarding electricity and gas prices?

Rachel Reeves and Ed Miliband are working on a practical way to decouple electricity prices from gas prices in the UK, aiming to break the current link where gas — under the marginal cost pricing model — sets the wholesale price of electricity, even though rising gas costs do not reflect actual changes in electricity production costs.

Why does the government consider delinking electricity and gas prices necessary, according to Reeves?

According to Reeves, delinking is necessary because high gas prices currently drive up electricity bills despite unchanged electricity production costs, and it is especially important as electricity’s share of the UK’s energy mix grows; she described it as 'absolutely the right thing to do' and indicated details would be announced within days or weeks.

Reeves Plans to Decouple Electricity Prices from Gas Costs

Apr 17, 2026

UK Chancellor Rachel Reeves plans to decouple electricity prices from gas costs to stabilize bills. The government also aims to encourage investment in North Sea oil and gas tiebacks to increase domestic supply.

theguardian

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