Britain set out plans 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.
On Tuesday it said voluntary long-term fixed contracts would be offered to existing low-carbon generators not on fixed-prices so they are not being paid the price of gas. It said this would cover around a third of Britain’s power supply.
It also said it would increase the Electricity Generator Levy by raising the rate from 45% to 55%. The levy is imposed on wind and solar generation to claw back the higher payments they were getting for being paid the higher cost of gas. Reuters
