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UKERC: The Cost of Electricity in the UK: Drivers, Challenges and Opportunities for Reform
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This UKERC Briefing Paper provides an analysis of the drivers behind high electricity bills, the expected trajectory of bill components through 2030, and the policy and market reforms that could meaningfully reduce costs for UK households.
With the UK facing its second energy crisis in five years, debate around how to reform domestic electricity prices is back in full force. The high cost of power, exacerbated by international conflict, adds to the cost-of-living crisis and makes the planned electrification of heating and transport more challenging.
This UKERC Briefing Paper provides an analysis of the drivers behind high electricity bills, the expected trajectory of bill components through 2030, and the policy and market reforms that could meaningfully reduce costs for UK households. It draws on a decade of Ofgem energy price data, original UKERC analysis, expert workshop findings, and a wide body of grey and academic literature. It lays a foundation for our subsequent work to explore specific options and a package of reforms.
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