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Britain’s government announced plans on April 21, 2026, to reduce household exposure to volatile global gas prices by moving older renewable electricity generators on to long-term fixed-price contracts within about a year.
Officials said the measure would “delink” wholesale electricity prices from gas, which currently sets the market marginal price and can push bills higher when gas spikes.
The package includes raising an existing electricity generator windfall tax (electricity generator levy) from 45% to 55% on excess profits for legacy projects that remain on market-linked deals, as an incentive to sign up to contracts for difference (CfDs). The measures, framed by ministers including Energy Secretary Ed Miliband, Chancellor Rachel Reeves and Labour leader Keir Starmer as part of a clean-power push prompted by recent Middle East tensions, also propose planning law changes to speed EV charger and rooftop solar installations.
Government estimates of consumer savings remain unspecified; analysts and the UK Energy Research Centre have previously suggested potential annual savings of £4bn–£10bn if market prices stay high.
Northern Ireland operates a separate market.
Opposition parties warned of higher costs and industry pushback.







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