Insight
GB retail price forecast
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Report summary
Our modelling indicates that retail electricity bills are expected to fall during the late 2020s, driven by a combination of the natural wind-down of legacy environmental levies, government decisions to shift some policy costs from bills to general taxation, and lower wholesale prices. However, this decline is short-lived, with bills rising again in the early 2030s as a growing share of generation is supported by CfD contracts and network costs increase due to significant grid infrastructure expansion and upgrades. This report examines projected trends in retail electricity prices and the evolution of the underlying cost components, as well as sensitivities to key drivers.
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