Households could save £200 on energy bills in plan to break link between gas and electricity prices, says thinktank

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Common Wealth published research by Donal Brown of Oxford University proposing a single-buyer electricity model for Great Britain under which the government would purchase all power from generators and resell it to consumers, breaking the current merit-order link to gas. Gas plants would operate in a strategic reserve, while legacy nuclear, older renewables, and hydro would contract through public power-purchase agreements priced at the average of the generation mix. Assuming wholesale prices remain between £70 and £100/MWh, the switch could save households roughly £185 a year and total up to £74bn over five years; the proposal arrives as the Iran war has triggered a July bill increase of more than £200.