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The Guardian - UK
The Guardian - UK
Business
Jillian Ambrose Energy correspondent

Why are UK electricity prices linked to gas – and what does it mean for bills?

Energy monitor showing electricity costs in a UK kitchen as woman makes tea
Electricity wholesale prices in the UK have more than doubled since the war in Iran choked gas supplies. Photograph: True Images/Alamy

The second global energy crisis of this decade has reignited questions about Britain’s grid strategy, specifically: why does it continue to have one of the most expensive electricity markets in the world?

Despite the growing role of domestically generated renewable power, electricity wholesale prices in the UK have more than doubled since the war in Iran triggered a global squeeze on seaborne gas shipments from the Gulf.

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