Vince calls to stop tying energy bills to gas prices

STROUD green energy tycoon Dale Vince has said Rachel Reeves should reform how energy bills are calculated at the Budget this week as part of a series of measures to save billpayers hundreds of pounds.

- EMILY BEAMENT [e-mail]

Mr Vince, right, the founder of Ecotricity and a previous Labour donor, has urged the Chancellor to adopt three measures which could help halve bills and bring down inflation.

He has written in a newly launched newspaper to all MPs and peers ahead of Ms Reeves’ announcement on Wednesday to warn that Labour risks opening the door to Reform UK unless the party properly controls the cost of living.

Mr Vince said: “We can fix the system, cut bills, boost growth and strengthen Britain’s economy - all in one go.

“Unless Labour brings down energy bills before the next election it risks handing the country into the grasp of the hard-right Reform party.”

Among the proposals are that the Government should stop tying energy bills to the price of gas, because the fuel now plays a smaller role in generating electricity.

Despite gas only making up 30% of UK power generation in 2024, it sets the price of electricity the vast majority of the time as it is the most expensive fuel in the generation mix.