Electricity prices in Great Britain

In recent years, electricity prices for both households and businesses have seen significant increases. This briefing sets out how electricity bills are calculated, how much on average they cost and how they compare internationally. It also provides commentary on why prices have been so high and gives an overview of government policy in this area.

Electricity prices in Great Britain

Clean power 2030 action plan: Impact on rural communities

The government’s ‘Clean power 2030 action plan’ (December 2024) set out a transition towards clean, low carbon electricity in Great Britain. This included plans to expand energy infrastructure and transmission networks. However, some MPs and campaign organisations have raised concerns about the impact of expanded network infrastructure on rural communities. To support local areas, the government is considering a proposal to introduce community benefits for low carbon energy infrastructure.

Clean power 2030 action plan: Impact on rural communities
  • In Focus

    Historical responsibility for colonial mining pollution

    Mining can have major impacts on the environment with one study putting the current global environmental costs of mining annually at £0.3tn, representing 0.5% of the world’s annual GDP. Widespread mining took place in British colonies during colonial rule. Commentators such as Action for Southern Africa have argued that instances of historic pollution, and how mining industries deal with them, present “a warning for what could come as the energy transition accelerates”.

  • Research Briefing

    Sustainable Aviation Fuel Bill: HL Bill 138 of 2024-26

    The Sustainable Aviation Fuel Bill is a government bill. It was introduced in the House of Lords on 20 October 2025 and is due to receive its second reading on 20 November 2025. The bill would introduce a revenue certainty mechanism to support the production of sustainable aviation fuel (SAF) in the UK. It would do this by designating a counterparty (a company wholly owned by the government) to engage in contracts with SAF producers to guarantee the price of the sale of eligible SAF. The government has said that SAF is one of the most effective ways to reduce greenhouse gas emissions from aviation, as SAF is a ‘drop-in fuel’ that does not require modifications to existing aircraft. Current supply of SAF is limited. The government has claimed the bill would support SAF production in the UK by providing revenue certainty and thereby reducing risk to investors in SAF production facilities. There was broad cross-party support for the bill during its House of Commons stages.

  • In Focus

    Great Britain’s electricity grid infrastructure: Lords Industry and Regulators Committee report

    The government has brought forward the target of decarbonising the electricity system by five years to 2030 as part of plans to achieve net zero. The House of Lords Industry and Regulators Committee considered the government’s plans to achieve this target as part of its recent inquiry on the energy grid and grid connections. The committee found that while the target is achievable, it is “a significant challenge”. The committee made a number of recommendations in light of this finding and others which are outlined in this briefing alongside the government’s responses.

  • Research Briefing

    Planning and Infrastructure Bill: HL Bill 110 of 2024–25

    The Planning and Infrastructure Bill would make changes to the system for approving major infrastructure projects, planning committees and nature recovery. It would also make changes to electricity and transport infrastructure processes, development corporations, spatial development strategies, and compulsory purchase. The government intends the bill to help grow the economy by enabling important infrastructure and homes to be built more quickly. Some parts of the bill, particularly those related to nature recovery, have attracted criticism from opposition parties and external bodies.

  • In Focus

    A new national policy statement for nuclear energy generation

    National policy statements (NPSs) inform decision-making for nationally significant infrastructure projects. The current NPS for nuclear power generation (EN-6) has effect for listed nuclear projects capable of being deployed by the end of 2025. Both the current and previous governments have consulted on a new NPS (EN-7) that would apply to nuclear power stations expected to be deployed after 2025. This briefing gives an overview of NPSs, the proposed new NPS for nuclear power generation and the reaction to it, as well as the current government’s policy on nuclear energy.

  • In Focus

    Methane emissions: House of Lords Environment and Climate Change Committee report

    In December 2024, the House of Lords Environment and Climate Change Committee published a report examining methane emissions in the UK. While acknowledging the UK’s efforts to reduce emissions, the committee expressed concerns about the UK’s international role in addressing the issue. It made several recommendations, including calling on the government to publish a methane action plan detailing how it would meet its global commitment to reducing methane emissions.

  • In Focus

    Costs of net zero by 2050

    The UK’s target of achieving net zero by 2050 was set under then prime minister Theresa May in 2019. To date, there has been political consensus on the target between Conservative and Labour governments. In March 2025, the Leader of the Conservative Party Kemi Badenoch announced that her party no longer supported the target, in part because she did not believe it was affordable. This briefing examines the costs associated with achieving net zero by 2050 and how progress to the target has been legislated for under the Climate Change Act 2008.

  • In Focus

    Biodiversity loss and climate change: Interdependent global challenges

    Nature and climate change are considered to be inextricably linked. Climate change is one of the drivers of biodiversity loss, along with factors including unsustainable food production and the overuse of natural resources. Nature is considered a key tool in combating rising global temperatures, for example forests and peatlands can play an important role in absorbing carbon emissions. This briefing summarises biodiversity loss, nature-based solutions to climate change and UK climate and nature policy.

  • Research Briefing

    Bus Services (No. 2) Bill [HL]: HL Bill 54 of 2024–25

    The Bus Services (No. 2) Bill is a government bill scheduled to have its second reading in the House of Lords on 8 January 2025. It is intended to make it easier for local transport authorities to franchise bus services in their area. It also includes measures on bus data, enforcement powers, accessibility of bus stops, safeguarding checks and training for bus drivers and zero-emissions buses.

  • In Focus

    Long-duration energy storage: House of Lords Committee report and plans for a new scheme

    Renewable energy generation can depend on factors like weather conditions and daylight hours. Long-duration energy storage technologies store excess power for long periods to even out the supply. In March 2024, the House of Lords Science and Technology Committee said increasing the UK’s long-duration energy storage capacity would support the UK’s net zero plans and energy security. The government has announced an investment support scheme, to launch in 2025.

  • In Focus

    Renewable energy: Costs

    Labour has committed to decarbonising the UK’s electricity system by 2030, saying this would help the UK achieve its 2050 net zero target. This briefing discusses how much renewable energy contributes to Great Britain’s electricity currently, how much it costs to generate electricity from renewable energy sources and estimates for the total cost of transitioning to a zero-carbon power system, and issues around the need to invest in supporting infrastructure such as storage technologies and grid upgrades.

  • Research Briefing

    Great British Energy Bill: HL Bill 43 of 2024–25

    The Great British Energy Bill is a government bill which would establish Great British Energy, a new government-owned clean energy company. The government has said the new company will support the creation of new jobs by investing in the clean energy sector. It has also asserted that, by reducing the UK’s dependence on fossil fuels, it would help drive down the UK’s energy costs and ensure the country’s long-term energy security.

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