London, 19 July – New analysis by energy think tank Ember reveals that the skyrocketing price of fossil gas is responsible for 80% of the increase in UK wholesale electricity prices over the period July 2021 to June 2022.
Compared with the previous 12 month period, wholesale power prices have more than tripled and so has the cost of generating electricity from gas plants.
Monthly average UK wholesale electricity prices surged by almost £120/MWh – from £55/MWh in the previous period to £171/MWh. The cost of fossil gas was responsible for £93/MWh (80%) of this spike.
Skyrocketing wholesale electricity prices are squeezing households and businesses, with more pain coming in October when the energy price cap will increase yet again. Despite claims by a small group of Conservative MPs in the ‘Net Zero Scrutiny Group’, rising energy costs have almost nothing to do with green subsidies or the price of carbon allowances. The reason is soaring fossil gas prices.
