Comments on: ESNZ Committee opens inquiry into energy bills https://www.newpower.info/2025/02/esnz-committee-opens-inquiry-into-energy-bills/ Expert information for all those invested in the UK's energy future Fri, 20 Feb 2026 08:08:27 +0000 hourly 1 http://wordpress.org/?v=3.6 By: John Daglish https://www.newpower.info/2025/02/esnz-committee-opens-inquiry-into-energy-bills/#comment-96605 John Daglish Fri, 28 Feb 2025 08:52:10 +0000 http://www.newpower.info/?p=13721#comment-96605 “Suppose that regulation was changed. Instead of all producers, whether of gas or electricity, being paid the price of the highest cost supplier in their market they were instead paid their own fair marginal cost of production, including a reasonable profit margin.

Then presume that the energy regulator priced the onward supply of wholesale gas and electricity to the energy distribution companies on the basis of the actual cost to produce (including fair profit) of the gas and electricity actually sold into the market each day.

I stress, that for much of the renewables sector and for nuclear this will not be hard to do because of the nature of the government price guarantees that are already in place.

For gas, simply mix internationally priced gas with UK-produced gas at its fair price of production. That’s all that is required.

This would, though, require a change in the law. There would be yelling, screaming and shouting from some energy companies, despite what I have noted, and legal threats galore. These will need to be ignored for one straightforward reason. This is that the state should not support a market rigged by its own regulation.”

Its time to change uk energy pricing – Funding the Future
https://www.taxresearch.org.uk/Blog/2025/02/25/its-time-to-change-uk-energy-pricing/

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