The report, Powering affordable, secure energy, demonstrates how investing in home-grown power directly protects consumers. Opening the event, Martin Pibworth, Chief Executive of SSE, emphasised this by saying that domestic energy generation would protect the public from external economic shocks that increase household bills.

‘Energy affordability has clearly always mattered, but perhaps never more so than now – as we deal with the impacts of global instability on household bills, business costs and the wider economy.’ Pibworth explained that global events continue to reveal structural weaknesses in the UK energy network. ‘Over the past few years, we’ve been reminded of how exposed the UK is to changes in the national market where gas prices spike globally, whether due to conflict or supply disruption. Increased household bills quickly follow and – just as they begin to settle – it feels like another shot comes around the corner.’

The numbers back up this concern. He explained that global commodity prices (and inflation) account for 70% of the increase in domestic energy bills since 2017, showing the risks of letting international gas prices determine UK electricity costs. Pibworth stated that expanding domestic renewable power is an effective way to manage national risk. Producing clean energy locally enables the UK to set electricity costs in advance, rather than relying on fluctuating international markets.

However, doing so requires effective transmission networks. Without robust infrastructure to deliver electricity from wind and solar sites to consumers, affordable power cannot reach those who need it. To close this infrastructure gap, Pibworth stated that SSE will invest £33bn in the UK energy system over the next five years. The investment will focus on networks, renewable projects and assets that promote long-term affordability and security. One of the strategy’s components is to electrify the broader economy, including heating, transport and manufacturing. Electrification increases efficiency, distributes grid costs more widely and connects properties to stable domestic power.

Producing clean energy locally enables the UK to set electricity costs in advance, rather than relying on fluctuating international markets.

The report estimates that household electrification could reduce average energy bills by £500 by 2040 and up to £1,000 by 2050. Families adopting electric vehicles could lower their energy expenses by 30% and installing a heat pump could provide an additional 5% savings. Martin McCluskey, Minister for Energy Consumers, stressed that government plans must prioritise the consumer experience. He stated that transitioning to clean energy is the most reliable way to stabilise domestic bills and that fossil fuel shocks have caused half of the UK’s economic recessions since the 1970s. He cited recent market disruptions from conflicts involving Russia and Iran as evidence that the UK must reduce its reliance on foreign gas. McCluskey offered the example of the government’s Clean Power Action Plan, which sets targets to build 50GW of offshore wind, 29GW of onshore wind and 47GW of solar capacity by 2030, and the government’s allocation of £15bn to the Warm Homes Plan.

Insights from the panel
While these government plans offer long-term solutions, speakers from a panel session held during the launch highlighted the immediate challenges facing citizens. Gillian Cooper, Director of Energy at Citizens Advice, warned that current financial pressures on households make urgent policy changes necessary. Cooper explained that although grid infrastructure investments are essential, they take years to deliver financial benefits to consumers. This results in a challenging transition period during which bills remain high as the grid is upgraded.

‘The politics around some of the affordability challenges feel a bit brutal at times,’ Cooper said, discussing the disconnect between long-term national planning and current household budgets. She added: ‘We know that bills are going to get a bit worse before they get better. Investment in infrastructure and clean power is clearly the right thing to do, but they are more of a longer-term solution.’

Citizens Advice data shows that energy debt is now the largest single debt issue for its clients. More than half of those seeking debt advice have a negative budget, with basic living costs exceeding their income. To address these immediate hardships, Cooper recommended removing policy levies from household energy bills. She proposed funding these schemes through general taxation so that wealthier households contribute a fairer share of transition costs. Cooper also called for stronger consumer protections, including a mandatory quality scheme for green home installers to prevent poor installations. She argued that delays or faulty work during home upgrades could undermine public trust in the transition.

‘Anyone who is purchasing these technologies needs to benefit from a fit-for-purpose consumer protection framework,’ Cooper added. ‘We want a mandatory quality scheme for installers working in this space, working to robust technical and conduct standards.’

[Editor’s note: The event happened before new UK Prime Minister Andy Burnham announced he would remove tax on energy bills, which the government said would take £45 off the regulator Ofgem’s price cap in October.]

Ravi Gurumurthy, Chief Executive of public R&D body NESTA, agreed that clear economic incentives are essential for a successful transition. He said that the current price relationship between electricity and gas penalises green choices.

‘I think the most important thing is cheaper electricity relative to gas,’ Gurumurthy stated. He noted that without pricing reform, technologies like heat pumps remain uncompetitive for most homeowners. He explained that high upfront costs and unpredictable operating expenses deter the public from adopting clean heating.

‘Everybody has been surprised by the slow uptake of heat pumps... but it is not surprising in the sense that it’s still for many, many people not cost-effective,’ Gurumurthy explained.

To resolve this, he proposed a gas stabiliser tax to maintain a favourable price gap even if global gas prices fall. He also recommended financial models that let homeowners install green technology at no upfront cost and repay gradually through their bills.

‘How can you make this free at point of delivery and paid back over time through the bills?’ Gurumurthy questioned. He also criticised the lack of coordinated national planning, noting that no single body oversees both electricity generation and the transition in electricity demand. He warned that effective supply planning requires understanding how and when people will use clean power: ‘Unless you plan for electrification properly, you can’t really plan the supply side.’

Former Energy Secretary (2015–2016) Amber Rudd, now a non-executive director of gas supplier Centrica, reflected on how the political debate around energy has changed over her career. She noted that 10 years ago, international climate negotiations like the Paris Agreement put carbon reduction at the top of the political agenda, but now the debate centres on affordability and security. While clean energy remains the objective, policymakers must justify investments by their impact on consumer bills.

‘We have to prioritise cost,’ Rudd stated, adding that loading the expenses of new nuclear power plants and network reinforcements onto domestic bills has reached a social limit. When asked if the Treasury would fund these investments through general taxation instead of consumer bills, Rudd expressed scepticism. She noted that severe financial constraints make it difficult to persuade chancellors to absorb these costs.

‘It’s all about the cost of living and the government has no money. But you’ve got to make the case little by little... at least to stop them putting more costs on.’

Shevaun Haviland, Director General of the British Chambers of Commerce, presented the business community’s perspective. She warned that high energy costs hinder commercial investment and threaten economic growth. Haviland cited a recent survey of 5,000 businesses that showed a decline in investment intentions following recent geopolitical events. She noted that energy costs are now the second largest financial pressure for UK companies.

‘The cost-of-living crisis and the cost-of-doing-business crisis are really two sides of the same coin,’ Haviland stated, pointing out that 52% of businesses must raise their own prices to cover energy bills. She added that current tax policies penalise firms transitioning to clean power. For example, installing solar panels on a factory roof increases the building’s rateable value, raising business rates. ‘So, you are actively disincentivised to move to electrification,’ Haviland remarked.

She also explained that grid connection delays stall major developments, forcing some businesses to use fossil fuel generators or move investments abroad.

‘We have members who want to invest millions... but grid delays mean they face waiting far too long. The money is going to go elsewhere,’ Haviland warned.

To address public scepticism about infrastructure costs, Haviland argued that developers should highlight the local economic benefits of major projects. She cited Sizewell C, which has directed £1.4bn to local businesses and funded schools in Suffolk.

‘We need to tell the story of the return on investment much better,’ Haviland urged. ‘Sizewell C has already put pounds back into the local economy through hiring those local businesses, yet consumers only see the extra charge on their bills.’

Last, but not least, Daisy Powell-Chandler, Lead on Energy, Climate and Environment at consultancy Public First (formerly Stonehaven), presented polling data showing that public support for homegrown energy remains overwhelming. ‘We see a broad and enthusiastic mandate for domestic production with renewables as the preferred path over drilling,’ Powell-Chandler shared. ‘However, to the public, security means bills. It’s not an ideologically driven choice. This is about affordability and reliability.’

The panel agreed that the UK must accelerate grid construction and reform the planning system. Simplifying the connection process is essential to attract private investment and make clean energy viable. The success of the transition depends on making ‘green choices’ financially viable for families and businesses. Delivering predictable, domestic power is what is recommended for building an energy system with lasting public support.

• Further reading: ‘Why the energy trilemma is not a zero-sum trade-off’. Following his appearance at the Energy Institute’s International Energy Week earlier this year, Fintan Slye FEI, CEO of the National Energy System Operator (NESO), sets out his perspective on the challenges facing Great Britain’s energy system, and how to strike the right balance across the energy trilemma for consumers.
• ‘Vulnerabilities and opportunities: rebuilding the UK’s energy resilience’. In March 2026, the UK’s energy infrastructure was formally recognised as critical to national security, reflecting a growing reality. The resilience of the UK’s electricity system is being tested as never before, according to Stephen Horrax, Director of Energy, UK & Ireland, at global engineering and consultancy firm Ramboll.