Powering secure, affordable energy

A clear pathway to lower bills

Delivering homegrown energy and electrifying energy use will cut bills and boost UK competitiveness.

Electrification could cut bills by 35% while a shift to more UK-generated clean electricity at the same time will boost UK energy security and protect against price spikes.

Energy bills in the UK are heavily influenced by global gas markets. When international prices rise, households and businesses feel the impact. Our affordability analysis explores how increasing the use of UK-generated electricity, supporting greater electrification, and investing in the networks that connect it can help create a more stable, secure and affordable energy system over time.

Read the report to explore the evidence, key findings and practical steps that can help reduce exposure to global price volatility.

Read the Powering affordable, secure energy report

“The single biggest lever the UK has to lower energy costs over time is to make more use of the electricity generated here in the UK.

Right now, too many households and businesses remain exposed to global gas prices that are outside our control. By supporting electrification and investing in the networks needed to connect homes, businesses and industry to electricity, we can build a more secure, more competitive and more affordable energy system for the future."

Martin Pibworth
Chief Executive, SSE plc

The evidence overwhelmingly demonstrated that after a period of higher energy prices driven by fossil fuels, the UK is on the right path to achieving lower and more stable energy bills for the long term through investment.

We need to:

Deliver clean power at pace
Set out a comprehensive Electrification Strategy
Ensure the transition is fair and equitable

What really makes up an energy bill?

Electricity and gas bills don’t just cover the cost of energy itself. They also pay for the networks that deliver it, supplier overheads and government schemes that support renewables and vulnerable households.

A detailed chart breaks down the average domestic dual fuel bills in GB, totaling £1,862 per household. It includes electricity costs at £914 + gas costs at £948, depicted in pie charts. Cost categories are retail, network, wholesale, policy costs, + VAT. Retail costs cover supplier fees + profits. Network costs involve transmission + distribution. Policy costs highlight government support + security measures. Wholesale costs cover energy market purchases.

Electrification lowers bills overall

Your energy bill covers more than just the cost of gas and electricity. It also helps pay for the networks that deliver energy to homes and businesses, customer services provided by energy suppliers, and programmes that support vulnerable customers and other public policy schemes.

The UK is moving away from a more variable system where prices are driven by global events to one where more costs are fixed and driven by investments in homegrown infrastructure. This gives the country greater control over energy costs and means energy bills will become more stable.

Infographic titled "How switching to electric alternatives impacts customer bills" showing a progression from "Gas boiler + petrol car" to "Gas boiler + EV" and finally to "Heat pump + EV." The switches result in bill reductions of 30% + an additional 5%. Below are three line graphs comparing household bills from 2024 to 2040, demonstrating cost savings at each step. The first graph shows a cost of £3,016 in 2026, the second £2,076, + the last £1,962, indicating reduced expenses over time with these changes

What does electrification look like for consumers?

Most people should see benefits from using more electricity over time, but the savings will vary depending on their circumstances.

For example, households that switch to an electric vehicle could reduce their energy costs by around 30%. Those who also install a heat pump could save up to 5% more.

While many people will have the opportunity to make these changes as vehicles and heating systems are replaced, not everyone can switch straight away. Some households and businesses may need financial support to help with the upfront costs and any disruption involved in making the change.

2050 lifetime system cost estimates by technology

Bar chart comparing costs of energy generation from Offshore, Onshore, Solar, Gas CCGT, and Nuclear in £/MWh. It shows cost components as LCOE (teal), Carbon (grey), and System (dark blue). Nuclear and Gas CCGT have higher costs, indicated with dotted lines showing uncertainty. Text notes gas generation costs are as high as renewables without carbon pricing, with future gas price variability and higher cost uncertainty for Gas CCGT and Nuclear skewed upwards.

The UK will need more electricity in the future as transport, heating and industry increasingly rely on it.

There are different ways to meet that demand, but renewable electricity is now one of the lowest-cost sources of new power. Unlike fossil fuels, it does not rely on fuel bought from global markets, helping to provide greater certainty over future costs.

Producing more electricity in the UK can help reduce exposure to global price shocks, strengthen energy security and support lower energy costs over time.

Key findings

Domestic energy bills have risen since 2017, with global commodity prices and inflation accounting for around

Switching to an electric vehicle could reduce a family's overall energy costs by around

Support for producing more energy in the UK to reduce reliance on other countries stands at more than

By 2040, Greater use of electricity could lower average household energy costs by around

£ p/a

By 2050, greater use of electricity could lower average household energy costs by around

£ p/a

Frequently asked questions

UK energy bills are still affected by changes in global gas markets. When international gas prices rise, households and businesses can feel the impact through higher energy costs.

Using more electricity generated here in the UK can help reduce that exposure over time. Homegrown electricity, fixed-price arrangements and greater electrification have already helped protect consumers from some of the impact of global energy price rises.

As the UK generates more of its own electricity and uses it in more parts of everyday life, including transport and heating, the energy system becomes less dependent on fossil fuels, whose prices can change quickly in global markets.

Future global energy shocks are likely to happen. The key question is how exposed the UK will be when they do. Producing more electricity in the UK, using it more widely, and investing in the networks needed to deliver it can help create a more stable, secure and affordable energy system over time.

SSE news on electrification and affordability

Affordability and electrification 07 Jul 2026

Delivering homegrown energy and electrifying energy use will cut bills and boost UK competitiveness

In a new report, combining in-depth public opinion polling with data analysis, SSE finds that building homegrown electricity infrastructure and then using more of that electricity to power homes, businesses and industry will drive down energy bills while ensuring consumers are protected from price spikes caused by global events.

Affordability and electrification 28 May 2026

SSE generates nearly £10bn for UK economy as it invests to strengthen the electricity system

SSE has published its Full-year Results for the year ending 31 March 2025.

Affordability and electrification 27 May 2026

SSEN Transmission delivers nearly £300m in savings for consumers

The National Energy System Operator estimates that SSEN Transmission's interventions have delivered almost £300m of savings for consumers in the last financial year.