The UK’s Clean Power 2030 Mission is under threat unless affordability is placed at the heart of the transition as a matter of urgency, warns Uswitch CEO Angus McCarey.
Despite major and welcome investment in renewable and nuclear generation and grid infrastructure, households are still paying higher energy bills since the crisis – and the perception remains that ‘green’ initiatives will only increase household bills in the short term.
The risk, warns McCarey, is that the public will turn against the clean energy agenda entirely unless there is a clearer, quicker, more affordable path forward for consumers.
Following the government’s recent decision to retain a single national wholesale electricity price as part of its Review of Electricity Market Arrangements (REMA), rejecting proposals for zonal pricing, McCarey argues time is of the essence for the energy industry to get on the same page to bring down the cost of clean power.
McCarey argues that delivering genuine affordability in the energy system means clean power must be cheaper to use than gas. This is supported by insights from 15,000 UK consumers, showing that low prices remain the top priority for nearly all energy customers (76%) after accurate billing and value for money. Yet, only 26% are satisfied with the energy efficiency support provided by their supplier.
Uswitch Energy users account for the equivalent to nearly a quarter of domestic energy use on the grid. Almost half of households who said they don’t shift their energy usage at certain times of the day (48%) say this is because their current tariff offers no incentive to do so.
Recent government backing for new nuclear projects, including commitments to large-scale stations and small modular reactors, has reinforced the UK’s ambition to build a secure, low-carbon energy system.
But electricity bills, unlike gas, currently remain weighed down by levies and network charges, which inflate the cost of low-carbon solutions such as heat pumps, electric vehicles (EVs), and smart tariffs.
With long lead times and high up-front costs, there is a risk these investments could add pressure to bills in the short term unless mitigated by targeted protections and clear cost allocation.
The government’s ability to attract major global investment is a positive step and reflects confidence in the UK’s clean energy ambition.” said Uswitch CEO Angus McCarey. “But right now, many consumers are being asked to pay more for energy without the tools, tariffs or confidence to make that shift.
“Without structural reforms to how energy is priced, ensuring clean power is the cheapest and simplest choice, we risk leaving millions behind in this transition.”
Consumers also need better control over how and when they use energy, McCarey argues, which should be supported by smart meters and flexible tariffs, with incentives being clear and simple to engage with.
“Consumers are not resisting the energy transition,” added McCarey.
“They are simply waiting for it to make sense – financially, practically and personally. Affordability is not a secondary issue, it is the issue.
Prioritising UK national energy security and removing our reliance on expensive fossil fuels dictated by recently volatile international markets is the way we make it affordable. But we can’t wait for the lower bills to arrive years into the future – we must show results along the journey.
”Innovation and digital solutions are urgently needed here – a smart meter isn’t enough unless it can actually bring your bill down. This is one of the reasons Uswitch has launched a free service, Utrack, which unlocks smart meter data to show the impact on your bill. We are doing what we can, but the industry needs to act with more urgency to make a difference.
“Without a credible, consumer-first strategy that ensures households see direct, affordable benefits, the UK risks falling short of one of its most important climate milestones.”
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