London, 22 November – GB’s continued over-reliance on expensive fossil gas to generate its electricity is making it harder for millions of households to affordably power their homes. In 2024, the cost of generating electricity using gas has averaged £77/MWh. This is 80% higher than the pre-energy crisis average of £43/MWh recorded between 2017 and 2020.
Rising gas costs drive up GB electricity prices
22 Nov 2024
Gas prices are rising again across 2024
Gas prices have been rising throughout 2024 and this is driving up electricity prices. Since January, the average cost of generating electricity using gas has risen by 35%.
This is also impacting the GB energy price cap. There has been a 20% increase in day-ahead wholesale gas prices from mid-August to mid-November, which coincides with the latest assessment period for the cap. And the average cost of generating electricity using gas during this period was 14% higher than the previous assessment (mid-May to mid-August), increasing from £78 to £88. These rises are reflected in the recently announced 1.2% increase in the energy price cap.
Gas prices are rising, this is why energy prices are not falling. The best way to reverse this ongoing trend is to accelerate clean power production, invest in the grid and roll-out energy efficiency, reducing the number of hours gas is a price-setter in the power market
Notes to editor
This European electricity prices and costs data tool compares electricity prices, carbon prices and the cost of generating electricity using fossil fuels and renewables in Europe.
https://ember-energy.org/data/european-electricity-prices-and-costs/
About Ember
Ember is an independent energy think tank that aims to accelerate the clean energy transition with data and policy. It creates targeted data insights to advance policies that urgently shift the world to a clean, electrified energy future.
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