Overview
- Independent UKERC analysis finds typical electricity bills rose by £169 in real terms between 2021 and 2025, with 66% of the increase driven by wholesale gas costs.
- Despite providing about a third of power, gas is estimated to set electricity prices for up to 90% of generation, exposing consumers to gas market swings.
- As more CfD-backed renewables come online, UKERC projects gas will set prices only about 60% of the time within three years and wholesale prices will be roughly 8% lower by 2029.
- The Government’s last budget moved older renewables subsidy costs into general taxation and scrapped a consumer-funded efficiency levy, trimming average bills by about £150 from April.
- UKERC warns of long‑term gas network liabilities, including £4bn of costs due after 2050, and calls for a public plan for retirement options such as area-by-area shutdowns or nationalisation.