Britain set out plans to weaken the link between the cost of electricity and global gas prices on Tuesday as officials try to reduce domestic bills.
The plan would force wind and solar power generators on to fixed contracts providing coverage of a third of the UK's needs.
The price of gas in the UK's energy market applies to all power generation including renewables, which has led to some of the highest electricity prices in the world.
Prices soared after the start of the war in Ukraine and again now with the impact of the US-Iran war.
Energy Secretary Ed Miliband announced the plans on Tuesday to start "delinking the electricity price from the gas price, so that actually we get the benefits of cheaper, cleaner power”.
"The reason our mission is even more important as a result of this crisis, is it's the only way we avoid these disastrous impacts on the British people, British businesses and indeed, the public finances,” he said.
Wholesale gas costs are now 30 per cent higher as a result of the US-Iran war and domestic energy prices are expected to rise more than 10 per cent from July when the quarterly price cap is adjusted.
This threatens the Labour government's pledge to lower energy bills.
To weaken the link with gas prices, the government will offer voluntary long-term contracts to existing low-carbon generators not already being paid a fixed price for their output.
The wholesale electricity price is set every 30 minutes by the cost of the last energy source used to ensure demand is met.
New contacts
So, even if wind, solar and nuclear provide 99 per cent of the power needed, if gas-fired plants are needed to make up the last 1 per cent, then gas sets the price for every buyer and seller.
"As we face the second fossil fuel shock in less than five years, the lesson for our country is clear: The era of fossil fuel security is over, and the era of clean energy security must come of age,” Mr Miliband said in a statement.
The government will also increase the Electricity Generator Levy, used to claw back excess profits made by wind and solar generators when electricity prices jump, to 55 per cent from 45 per cent.
He also outlined plans to up parts of public land for renewable energy projects, including brownfield, industrial and railway sites, would potentially allow up to 10 gigawatts of new capacity.
"We need to go faster, and that means driving more renewables and nuclear, for example, renewables on public land,” he added.
It will overhaul planning and land-use rules to speed up grid connections and infrastructure upgrades, and aim to make it easier for renters and apartment dwellers to install electric vehicle chargers, solar panels and heat pumps.
