Committee Backs Delinking Gas And Electricity Prices
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The House of Commons Energy Security and Net Zero Committee has recommended moving remaining energy transition policy costs off electricity bills and onto gas bills. It also says the government should speed up efforts to separate electricity prices from gas prices and should not leave future transition costs solely to consumers.

The House of Commons Energy Security and Net Zero Committee has recommended moving remaining energy transition policy costs from electricity bills onto gas bills, arguing that the change could help make the shift away from fossil fuels more affordable for consumers. The committee also urged the government to accelerate work to delink gas and electricity prices and reduce wholesale costs.

The committee says the government should transfer all remaining energy transition policy costs currently placed on electricity to the price of gas on energy bills. It presents the move as one step toward reducing the costs attached to electricity as the UK changes its energy system. The report does not set out a timetable or quantify the expected effect on household bills.

The committee also calls for faster action to separate the price of electricity from the price of gas and for the government to make better use of its available tools to bring down wholesale energy costs. These are recommendations to ministers; the report does not establish that the government has accepted them or that prices will change immediately.

On future policy costs, the committee says they should not be placed on billpayers. It argues that the wider energy sector should contribute to the cost of necessary electricity infrastructure, rather than relying on consumers to pay the full cost of the energy transition.

At a glance
reportWhen: Published in a new committee report; th…
The developmentA Commons committee report has called for UK energy policy costs to be shifted from electricity bills to gas bills as part of changes aimed at making the transition more affordable.

How the Proposals Could Shift Bills

The recommendations address how the costs of changing the energy system are allocated between fuels and across the sector. Moving policy costs from electricity to gas could, if adopted, reduce charges attached to electricity bills while increasing those attached to gas bills. The committee report does not estimate the size or distribution of any such change, so the effect on different households is not yet known.

Separating electricity prices from gas prices is a distinct part of the committee’s proposal. The committee links faster action on pricing and lower wholesale costs to making the energy transition more economical for consumers. Its report offers a policy direction, not a guaranteed reduction in bills or a detailed design for a new pricing system.

The issue also bears on the government’s Clean Power 2030 target. The committee warns that making consumers carry all transition costs could hinder progress toward that goal. It says infrastructure costs should be shared across the energy sector, although the report summary does not specify which businesses or other parties would pay, or how contributions would be calculated.

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The Committee’s Wider Cost Argument

The recommendations come from the Commons Energy Security and Net Zero Committee, a parliamentary select committee appointed by the House of Commons. Its remit is to examine the expenditure, administration and policy of the Department for Energy Security and Net Zero and associated public bodies. Its report is scrutiny and advice to government, rather than a change to energy tariffs or a binding instruction to ministers.

The committee’s proposals cover three related questions: how policy costs are assigned to electricity and gas bills, how gas and electricity prices are linked, and who should contribute to future electricity infrastructure. The report treats these as connected challenges for affordability and the transition away from fossil fuels, while calling for the wider sector to share costs currently borne by consumers.

The source report does not provide a detailed account of existing charges, a proposed mechanism for changing the relationship between wholesale prices, or a breakdown of the infrastructure costs in question. Those details would be needed to assess how the recommendations might work in practice.

“Government must speed up its work delinking the price of gas from the price of electricity and make better use of its tools to bring down wholesale costs.”

— House of Commons Energy Security and Net Zero Committee

No Costing or Government Response Yet

The report summary does not say how much policy cost would move from electricity to gas, when a transfer could happen, or how household bills might change. It also does not explain the practical model the government should use to delink prices or identify which wholesale-cost tools the committee wants ministers to apply.

It remains unclear whether the government will accept any of the recommendations, and how it would define or collect contributions from the wider energy sector toward infrastructure. The committee’s stated concern about the Clean Power 2030 target is its assessment; the source material provides no independent estimate of the impact of these proposals on the target or on consumer costs.

Government Response Will Shape Policy

The next development is whether the Department for Energy Security and Net Zero responds to the committee’s recommendations and sets out a timetable or policy plan. Any government proposal would need to clarify how costs are transferred, how changes affect different energy users, and how the sector would contribute to infrastructure spending.

Until ministers provide those details, the committee’s report remains a recommendation rather than an implemented change. The source material does not give a date for a government response or a further parliamentary milestone.

Key Questions

It recommends moving remaining energy transition policy costs from electricity bills to gas bills, speeding up work to delink gas and electricity prices, and reducing reliance on consumers to fund future infrastructure costs.

Will electricity bills fall as a result?

That is not confirmed. The committee has made recommendations, but the report summary provides no bill estimates and does not say the government has agreed to implement them.

What does delinking gas and electricity prices mean here?

The committee is calling for the government to speed up work to separate the price of gas from the price of electricity. The source does not describe a specific pricing mechanism or timetable.

Who would pay future electricity infrastructure costs?

The committee says the wider energy sector should contribute, rather than leaving consumers to bear all the costs. The report summary does not specify which organisations would pay or how contributions would be set.

Source: rss

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