UK Moves to Delink Power and Gas Prices in Bid to Cut Costs

The UK will seek to speed up efforts to cut the costs of green electricity by reducing its exposure to more expensive gas.

Energy Secretary Ed Miliband and Chancellor of the Exchequer Rachel Reeves announced a series of steps to delink power and gas prices Tuesday. That includes offering older wind and solar farms to sell power at fixed prices, while increasing taxes on those who choose not to. It creates a choice for producers between lower, stable revenues and the opportunity to sell at high wholesale prices, but with a steep tax rate.