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Examining Policy Options to Reduce Electricity Bills in Great Britain | Policy Report No. 2026/01
Authors:
- Donal Brown | Honorary Senior Research Fellow, UCL Institute for Innovation and Public Purpose (IIPP)
- Matthew Lockwood | Professor of Energy and Climate Policy and Co-Director of the Sussex Energy Group, Science Policy Research Unit (SPRU), University of Sussex
Abstract:
This report reviews more than twenty proposals for lowering household electricity bills in Great Britain. We also evaluate their consistency with the UK’s Clean Power 2030 and Net Zero 2050 targets. It recognises that despite the rapid growth of renewable generation, electricity prices in Britain remain dominated by volatile gas costs and are increasingly influenced by the costs of new infrastructure and grid upgrades. The authors therefore assess how a range of 20 policy interventions—spanning finance, markets, tariffs, and household technologies—could protect consumers from this exposure and deliver large near-term savings without derailing decarbonisation.
Each option is evaluated against four criteria: A. Impact on electricity bills, B. Implications for carbon emissions, C. Cost to government, and D. Feasibility or complexity of implementation.
The analysis covers four policy areas:
- Increasing investment or reducing the cost of capital for electricity infrastructure
- Reforms to electricity markets
- Reforms to electricity bills and charges
- Household adoption of low-carbon technologies
Reference:
Brown, D. and Lockwood, M. (2026). Examining policy options to reduce electricity bills in Great Britain. UCL Institute for Innovation and Public Purpose. IIPP Policy Report No. 2026/01.
Available at: https://www.ucl.ac.uk/bartlett/publications/2026/mar/examining-policy-options-reduce-electricity-bills-great-britain
This policy report is part of the UCL Institute for Innovation and Public Purpose’s (UCL IIPP) publication series.
Explore more working papers and policy reports here.