Stopping gas dictating UK energy price could cut bills by £200, thinktank says

Iran war has increased gas price, with effects on UK energy bills that could be avoided, Common Wealth says Household energy bills could be reduced by up to £203 a year by stopping expensive fossil gas setting the price of energy in the UK, according to a report. Under the existing system, gas – the most expensive form of electricity production in the UK system – set the price of energy 85% of the time in 2024 in the UK, even though it generates only about a quarter of Britain’s electricity. This means that, as the cost of gas rises further amid the US and Israeli war on Iran, consumers may face huge increases on their household bills this year. However, a report from the Common Wealth thinktank released on Thursday sets out how the government can cut the link between gas prices and electricity bills, saving consumers hundreds of pounds a year and stopping renewable energy companies, which are being paid the price of expensive gas, from reaping unearned windfalls. Mathew Lawrence, the director of Common Wealth, said: “We know the solution. Stop gas setting the price of electricity and prevent renewable operators reaping a windfall. This crisis is a test of the governmentâ€