The UK's energy price cap will increase by 13% to £1,862/year from July to September, driven by soaring global energy prices amid the war in Iran, affecting average households with a £221 annual rise.
The UK government's plan to de-link gas and electricity prices is a heavily diluted version of the more radical 'pot zero' proposal and will likely deliver only modest savings for consumers. While older wind and solar farms under the renewables obligation scheme receive around £200/MW/h compared to £91 for new projects, the reform only swaps the wholesale element to fixed-price contracts, not the legacy subsidy portion. Energy secretary Ed Miliband offered no bill reduction forecast, with savings dependent on take-up and likely to be modest under normal conditions.
Chris Huhne responds to Nils Pratley's article on UK gas policy, arguing that biomethane represents a third overlooked option between expanding North Sea drilling and increasing LNG imports. He highlights that biomethane is domestic, low carbon, storable and dispatchable, citing the IEA's 2025 Renewables report and examples from Denmark (meeting 40% of gas demand from green gas) and France (20%+ annual growth since 2022). The letter argues the UK lacks political will to scale these alternatives.
