![\"UK](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/04\/pylons-1200x800-1.jpeg\")
\t\tThe government is unveiling measures to decrease electricity bills\t<\/p>\n\t\t\tTuesday 21 April 2026 3:04 pm\n\t\t\t<\/p>\n
\t\tThe government is unveiling measures to decrease electricity bills\t<\/p>\n
UK households could see their electricity bills fall after the government unveiled measures to end the pricing system\u2019s relationship with volatile gas prices and fossil fuels.<\/p>\n
Energy secretary Ed Miliband is set to overhaul the system in a major intervention to sever the link between the prices of electricity to gas, which has long been blamed for hiking bills even when cheaper renewable options are available.<\/p>\n
The government wants to weaken the link <\/a>within the next year to shield households from sudden rises in fossil fuel prices caused by global turmoil, with conflicts in the Middle East and Ukraine emphasising the UK\u2019s exposure to international gas markets.<\/p>\n Under the plans, the government will expand the use of long-term fixed price contracts for renewable and nuclear generators, meaning more electricity will be sold at stable rates, believing the savings could be \u201csignificant\u201d.<\/p>\n Prime Minister Keir Starmer said: \u201cWe need to get off the fossil fuel rollercoaster, this will make energy bills more stable and take the pressure off family budgets.<\/p>\n \u201cWhen global gas prices spike, people here shouldn\u2019t be picking up the tab.\u201d<\/p>\n Windfall tax<\/p>\n Chancellor Rachel Reeves will also hike the government\u2019s windfall tax on low-carbon electricity generators from 45 per cent to 55 per cent in order to raise funds to support consumers and businesses suffering from rising energy costs.<\/p>\n The so-called electricity generator levy was introduced in 2022 to target the excess profits being made by nuclear, biomass and renewable energy plants in order to combat soaring prices caused by Russia\u2019s invasion of Ukraine.<\/p>\n The Government is also proposing a voluntary move by these \u201clegacy\u201d clean power generators, which supply around a third of Britain\u2019s power, onto fixed-price contracts to help protect consumers from volatile prices.<\/p>\n Reeves claimed increasing the tax \u201cwill help break the link\u201d and offer greater protection.<\/p>\n UKSIF CEO James Alexander said: \u201cSecretary of State Ed Miliband is right that the lasting lesson of the recent energy crisis is the need to end the UK\u2019s long-term reliance on oil and gas.<\/p>\n \u201cThis damaging new supply shock must be the turning point that puts the transition to a secure, clean economy well beyond doubt.<\/p>\n \u201cThese steps need to be put into action rapidly<\/a> so both UK and global investors have the confidence to deploy billions of pounds of capital at scale.\u201d<\/p>\n But shadow chancellor Mel Stride called the reforms \u201ctoo little too late\u201d.<\/p>\n \t\t\t\t\tRead more<\/p>\n \t\t\tShadow energy secretary: Reeves\u2019 subsidies mean nothing without tax cuts<\/a><\/p>\n Speaking in the Commons, he said: \u201cThe current crisis shows how exposed we are and how damaging the Government\u2019s net zero obsession has been to our economy, to households and to businesses.<\/p>\n \u201cThe Government is right to want to reduce that exposure, but is doing too little too late.<\/p>\n \u201cWe need an urgent change in course, not dither and delay. We need a proper, cheap power plan to get bills back down and we need it now.\u201d<\/p>\n Fossil fuel security<\/p>\n Miliband outlined the measures at the National Growth Debate on Tuesday, vowing to \u201cdouble down, not back down\u201d on the transition to clean energy.<\/p>\n He said: \u201cThe era of fossil fuel security is over.\u201d<\/p>\n \u201cFor Britain and so many other countries, clean energy is now the only route to financial security, energy security and indeed national security.\u201d<\/p>\n Miliband also lashed out at opponents who claimed the government had gone too far in the push to clean energy, arguing they have not yet done enough.<\/p>\n He said:\u201cActually, I believe the opposite is true. In response to recent events, our actions must now be faster, deeper and more wide-ranging.\u201d<\/p>\n