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General · 22 September 2026

Electricity bills could fall with time-varying prices, report says

Electricity bills could fall with time-varying prices, report says

Illustration: AI-generated for editorial context. Not photographic evidence.

A new report indicates that household electricity bills might decrease if the government promoted flexible, time-varying tariffs. The Institute for Fiscal Studies and LSE found that electricity generation costs vary a lot by time and place, but most consumers don't see prices that reflect this. Flexible tariffs could give people stronger incentives to use electricity when it's cheaper to supply, like charging electric cars off-peak.

Reported by Independent · How we write briefs

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Who sets electricity prices? Why do costs vary so much? What are flexible tariffs?

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