PUBLIC ELECTRICITY PROCUREMENT COULD CUT GB BILLS BY £200 A YEAR

Households in England, Scotland and Wales could save nearly £200 a year on their energy bills if the government acted as the sole buyer of electricity, according to new research from a thinktank. The proposal centres on public procurement of electricity, under which the government would purchase power directly rather than leaving acquisition to the open market. The research forms part of a broader discussion around de-linking gas and electricity prices in Great Britain. High electricity bills have followed a global surge in energy prices in recent years.

The current market structure ties electricity prices to the cost of gas, meaning that when gas prices rise, electricity costs increase across the board regardless of the source of generation. Public procurement would break that link by allowing the government to negotiate and set electricity prices outside the standard market mechanism. The research argues this approach would deliver consistent savings to consumers on their annual bills. The findings apply to households across Great Britain, covering England, Scotland and Wales.

The government has already signalled plans to de-link gas and electricity pricing as part of its strategy to reduce consumer bills. The thinktank's research adds quantified figures to that policy debate, placing the potential annual household saving at close to £200. Public procurement represents one of several mechanisms under consideration for restructuring how electricity is bought and sold in Great Britain. The research contributes to ongoing discussions about the long-term design of the British energy market.