Karthik Subramanya explains why affordability should lead the future of the UK’s energy industry.
Affordability Must Be Our First Principle
Much of the debate on the UK’s energy future focuses on capacity, technology choices, and ambitious net-zero targets. But the fundamental question is far simpler: can ordinary households afford it?
We’ve seen this challenge before. During the 2013–14 cost-of-living crisis, the then Labour Party leader promised at the party conference that all energy prices would be capped to protect average households. Today, a price cap has been in place for years—yet bills remain high, leaving households and small businesses squeezed.
Meanwhile, our energy system has transformed:
– Coal has been largely phased out
– Renewables now account for nearly half of electricity generation
– Offshore wind and solar capacity have grown exponentially, with targets of 50 GW by 2030
– Storage and grid upgrades are being deployed to balance intermittent generation
Yet despite this transformation, we have made little progress on affordability.
So as we plan the future, we need to ask the hard questions:
– What capacity do we really need? Peak demand is around 35 GW, but what mix actually meets this affordably?
– Should it all be met through renewables like wind and solar, with some nuclear? Or is there still a role for gas to ensure reliability?
– Do we really need to build all of the offshore wind currently planned? Or can smarter siting and storage reduce costs?
– How much new transmission infrastructure will this require? And how should these costs be allocated?
– Who ultimately pays for all of this? Households, businesses, or government-backed schemes?
This is not just a technical issue—it’s a social and economic one. Families are deciding between heating and essentials, small businesses struggle to remain competitive, and public trust in the net-zero transition is at risk.
Affordability must be baked into every decision.
Because if ordinary households and small businesses cannot afford the system we build, it doesn’t matter how green, how technically advanced, or how ambitious our targets are — the transition will have failed.
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