Energy bills set to soar. Endless price rises. Policy costs to blame. The spate of headlines last week on the energy sector were painful to read. They followed an appearance at a Commons select committee last week by a group of the UK’s biggest energy suppliers, sounding dire warnings about the state of the industry.
At SSE, we have a more optimistic view.
One fact that didn’t get much airtime: since 2010, despite the huge investment and transformation under way in clean-energy infrastructure, prices have stayed broadly flat in real terms when adjusted for inflation and falling demand.
That’s not to downplay the very real pressure households and businesses are under. But the transition we’ve already made has shielded families from the worst of global price shocks. If we stay the course, it will deliver something even more valuable: energy independence.
Looking ahead, wholesale prices are expected to fall further. As the suppliers pointed out, those savings won’t come straight off bills; instead, they will help fund essential upgrades to our grid. That’s what enables growth and reduces constraints — in plain terms, getting cheaper renewable power from where it’s generated (often in our seas) to where it’s needed.
"And what’s the end goal? It’s not just about powering data centres or electric cars. It’s about making sure your home stays warm in winter without breaking the bank. It’s about knowing your energy comes from here, not from overseas regimes that we can’t rely on. It’s about building a system that works today, and in the decades ahead."
Martin Pibworth, Chief Executive of SSE plc
I simply don’t buy the argument that the cost of the investments needed by the country are pushing up bills. We’re already seeing the benefit of these investments coming through.
One of the reasons our bills have been so high is that the cost of electricity is linked to the price of gas, which is one of the most expensive fuels in the system. But renewables are setting the wholesale price more and more of the time, bringing down the influence of gas on the power price. And as more renewables come online, like the world’s largest wind farm we’re in the process of commissioning at Dogger Bank, this effect is only going to increase.
Right now, with a glass half empty, some might look at a wind farm told to switch off and see waste. I look at it and see untapped potential. We’ve built the renewables where the resources are best. Now we’re upgrading the grid to use more of it, more of the time.
Will future energy bills depend less on global price swings and more on fixed costs? Well, yes — that’s sort of the point. We’ve all seen what happens when you’re too dependent on imported fossil fuels.
We’re not just maintaining the system; we’re building the system of the future — smarter, stronger, more secure. A system that saves billions in avoided fossil fuel costs, powers an electrified economy, and supports economic growth.
And what’s the end goal? It’s not just about powering data centres or electric cars. It’s about making sure your home stays warm in winter without breaking the bank. It’s about knowing your energy comes from here, not from overseas regimes that we can’t rely on. It’s about building a system that works today, and in the decades ahead.
There’s no credible alternative. The old system is shutting down. Older gas and nuclear stations will be retired soon, as demand for electricity is increasing. We can mitigate this by being smarter about how and when we use power, but no tech platform alone is going to bridge the gap.
You only have to look at the water industry for a cautionary tale on what happens if you don’t make the right investments at the right time. Inaction will cost households far more in the long run.
This is going to require investment, whichever technology you choose. A new gas power station today costs three times what it did the last time the UK built one, due to supply chain cost inflation and availability. New nuclear stations will add roughly £1 a week to bills. Offshore wind costs have gone up like everything else, but still offer value for money.
The path forward is clear: offshore wind supported by nuclear, hydro, batteries and cleaner gas, evolving into hydrogen and carbon capture — and the grid to support it. Nothing is cheap, and our infrastructure is ageing. But with the North Sea on our doorstep, a faster energy transition isn’t just necessary — it’s a competitive advantage.
We also need to make the transition fair. That means helping people to cut bills — shifting green levies off electricity to make it cheaper, offering social tariffs for those who need them. These are practical steps that make a real difference.
The future must happen fast — and be fair. It won’t build itself. Right now, upgrading the grid is more affordable than it will be in five or ten years. As the world’s big economies pursue and compete for the same wires, cables and equipment, materials, labour and supply chains are getting tighter. Every month we wait, the cost of securing our energy future goes up.
Acting today means locking in lower costs, protecting households from future shocks, and making sure the system is ready when we need it most.
We’ve got the resources, the know-how and the momentum. What we need now is the will to get on with it. Let’s stop relying on others and start building a system that works — for everyone. The longer we wait, the more we pay. Let’s act now and make this transition work for the people who need it most.
First published in The Sunday Times on 19 October 2025.