PARLIAMENTARY WRITTEN QUESTION
(26 February 2025)
Question Asked
To ask the Secretary of State for Energy Security and Net Zero, for what reason the Government uses the marginal cost pricing system for electricity.
Asked by:
Dr Ellie Chowns (Green Party)
Asked by:
Dr Ellie Chowns (Green Party)
Answer
The wholesale electricity market, like most commodity markets worldwide, is based on marginal pricing. This reflects the value of consuming or generating an additional unit of electricity at any given time and ensures that generators increase or decrease their output to meet demand.
Answered by:
()
Contains Parliamentary information licensed under the Open Parliament Licence v3.0.