Government to cut industrial energy costs: comment

"UK industry has had a rough few years being particularly badly hit by the energy crisis with UK Steel pointing to wholesale electricity costs, which are largely driven by the gas price, being ‘the main driver’ of disparities in electricity prices between the UK and Europe [2]. At one point the UK wholesale electricity costs were more than the total price paid by competitors in France or Germany [3]. This has a real impact on jobs and the communities they support.

“In following the lead of France and Germany and lowering the network costs on industrial bills, the government are putting forward part of the remedy, but reforming the market such that gas doesn’t set the price of wholesale electricity will also be important. Indeed wind energy is already having this effect, increasingly driving out the most expensive gas power stations from the market and lowering wholesale power prices by a quarter last year.” [4]