De-linking power from gas prices: a closer look

This paper examines whether the measures announced by the government are likely to reduce bills or provide meaningful protection for consumers in the near term, and explores some of the design choices and unintended consequences policymakers will need to consider.

Our conclusion is that these are pragmatic policy changes that could provide some protection against future price shocks, but they are not a panacea for lowering consumer bills in the short term. Their success will depend heavily on detailed scheme design, implementation and how the wider electricity market continues to evolve.