Ember, an independent energy think tank, published an analysis on 22 November 2024 stating that rising gas prices through 2024 have driven up electricity prices in Great Britain and are reflected in the energy price cap. The think tank said the cost of generating electricity using gas averaged £77/MWh across 2024, 80% above the pre-energy crisis average of £43/MWh recorded between 2017 and 20201.
Ember said the average cost of gas-fired generation had risen by 35% since January 2024. It reported a 20% increase in day-ahead wholesale gas prices from mid-August to mid-November, a period it says coincides with the latest assessment window for the cap. Over that window, the average cost of generating electricity using gas was 14% higher than the previous assessment period of mid-May to mid-August, rising from £78 to £881.
The think tank linked those figures directly to the cap. It said the rises "are reflected in the recently announced 1.2% increase in the energy price cap"1. The announcement date of that cap change, and the level it sets from, are not given in the analysis.
"Gas prices have been rising throughout 2024 and this is driving up electricity prices."
Ember's stated position is that continued reliance on gas for generation makes it harder for households to afford to power their homes, and that accelerating clean power, grid investment and energy efficiency would reduce the hours in which gas sets the power price1. The analysis does not quantify what share of a household bill each element represents, and no breakdown of the cap by cost component is given.
| Ember figure | Value |
|---|---|
| Average cost of gas-fired generation, 2024 | £77/MWh |
| Pre-crisis average, 2017 to 2020 | £43/MWh |
| Rise in that cost since January 2024 | 35% |
| Day-ahead wholesale gas price rise, mid-August to mid-November | 20% |
| Gas generation cost, mid-May to mid-August assessment | £78 |
| Gas generation cost, mid-August to mid-November assessment | £88 |
| Increase between the two assessments | 14% |
Why it matters for households
Gas-fired generation remains a price-setter in the GB electricity market, so when wholesale gas and electricity prices rise, the cost of electricity tends to follow, even for power produced from other sources. That link is the mechanism Ember describes between gas costs and the cap, and it sits behind the energy bills and the price cap framework that sets default tariff levels.
For a household, the practical consequence is that the gas price, not the generation mix alone, continues to shape what a unit of electricity costs. Ember's figures suggest the direction of travel through 2024 was upward, with the cap rising 1.2% in the announcement it cites. How that translates into an individual bill depends on usage and on the components that make up an energy bill, including network and policy costs, which Ember's analysis does not separate out.
On energy independence, the analysis points to a structural exposure: a market where gas sets the price transmits international gas market movements into domestic bills. Ember's proposed levers, more clean generation, more grid and more efficiency, are framed as ways to reduce the number of hours gas plays that role. The energy bills and energy independence relationship therefore runs through the wholesale market rather than through any single tariff.
What happens next
The analysis does not set out dated next steps. It refers to a recently announced 1.2% increase in the energy price cap but does not state the effective date of that change or the date of the next cap announcement. Those dates have not been reported in this analysis; the price cap history and announcement dates page carries the confirmed schedule.
Sources1 cited
- Rising gas costs drive up GB electricity prices | Ember, ember-energy.org