On 16 November, the Aldersgate Group released a new paper from University College London (UCL) titled Separating electricity from gas prices through Green Power Pools: Design options and evolution. The paper demonstrates how gas prices currently dictate the cost of electricity in the UK and outlines how the introduction of a Green Power Pool could ‘significantly’ reduce the cost of electricity for vulnerable consumers and lower the burden on public finances by harnessing the rapidly falling costs of renewables.
Under the Green Power Pool, it is proposed the lower cost power generated by renewables under the Contracts for Difference (CfD) scheme would be sold in priority to vulnerable consumers, protecting them from the higher cost of electricity on the wholesale market. The Aldersgate Group states that the option should be considered in the government’s Review of Electricity Market Arrangements (REMA) consultation.
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