Labour wants British energy prices to be less beholden to oil

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Labour plans to reduce the influence of gas on British energy prices by moving older renewable power plants onto fixed-term contracts. This will mean they will be paid a specific amount different from the usual market rate. The move makes sense and is better than proposals put forward by the Tories, who erroneously think the answer to lowering energy bills is drilling for North Sea oil, the price of which is set by international markets. The UK’s electricity prices are among the highest in the developed world, even though relatively cheap renewables comprise 30% of supply. This is because gas, the most expensive component, sets the price of electricity 98% of the time, compared to 24% in Germany. But the devil is in the details and there is no guarantee that energy producers will agree to the contracts, which are voluntary.