Chancellor wants to reduce impact of gas on market prices, as it almost always sets price of electricity in UK
The chancellor, Rachel Reeves, has said she and Ed Miliband, the energy secretary, are looking at ways to break the link between the cost of electricity and gas prices.
Gas almost always sets the price of electricity under the marginal cost pricing model the UK uses.
Speaking in Washington, the chancellor said: “So, this is something that I’ve been attracted to for quite some time, delinking electricity and gas prices.
“At the moment, when gas prices are high, we end up paying more for our electricity, even though the cost of producing it doesn’t change.
