UK set out plans to try to weaken the link between its cost of electricity and volatile gas prices on Tuesday, saying it would seek to force older renewable energy generators onto fixed contracts in a bid to bring down consumer bills.
The government said voluntary long-term fixed contracts would be offered to existing low-carbon generators not on fixed prices so they were not being paid the price of gas. It said this would cover around a third of UK’s power supply.
It also said it would increase the Electricity Generator Levy by raising the rate from 45% to 55%.