Britain set out plans to weaken the link between the cost of electricity and volatile gas ‌prices on Tuesday, saying it would seek to force older wind and solar generators onto fixed contracts in a bid to bring down consumer bills.

Britain has some of the highest electricity prices in the world due to the structure of its energy ​market where gas sets the price for all generation most of the time, an issue that saw ​prices soar after the start of the war in Ukraine and again now with ⁠the impact of the Iran war.

Domestic energy prices are forecast to rise more than 10 per cent from July as the ​regulator makes its quarterly price cap adjustment, with wholesale gas costs currently 30 per cent higher than before the conflict began, ​threatening a government pledge to lower energy bills.

PROTECTING UK ENERGY FROM GLOBAL VOLATILITY

To weaken the link with gas prices, the government will offer voluntary long-term contracts to existing low-carbon generators not already being paid a fixed price for their output. It said ​this would cover around a third of Britain’s power supply.

The wholesale electricity price is set every 30 minutes ​by the cost of the last energy source used to ensure demand is met. So even if wind, solar and nuclear ‌provide 99 per cent ⁠of the power needed, if gas-fired plants are needed to make up the last 1 per cent, then gas sets the price for every buyer and seller.

The government said Britain had moved from gas setting the price of electricity from around 90 per cent of the time in the early 2020s to around 60 per cent today.

“As we face the second ​fossil fuel shock in less ​than five years, the ⁠lesson for our country is clear: The era of fossil fuel security is over, and the era of clean energy security must come of age,” Energy Secretary Ed ​Miliband said.

The government will also increase the Electricity Generator Levy, used to claw back excess ​profits made ⁠by wind and solar generators when electricity prices jump, to 55 per cent from 45 per cent.

Opening up of parts of the public estate for renewable energy projects, including brownfield, industrial and railway sites, would potentially allow up to 10 gigawatts of new ⁠capacity, according ​to the government’s plans.

It will overhaul planning and land-use rules to ​speed up grid connections and infrastructure upgrades, and aim to make it easier for renters and apartment dwellers to install EV chargers, solar ​panels and heat pumps.