The Review of Energy Policy is an annual compendium bringing research findings to bear on energy policy in the UK. In 2025, the Government has introduced a range of policies to advance its Mission to make Britain a Clean Energy Superpower. In a wide-ranging report, we outline action on energy bills, a reflection on the zonal pricing debate, the Critical Minerals Strategy, and more.
In the review, we outline the following considerations:
Over this time, typical electricity bills rose by £169 in real terms. Of this increase, £112 results from wholesale fuel (gas) prices (66%), a £28 increase was due to increased network costs (17%), and £22 from policy costs (13%). The remainder being wider factors due to the energy crisis, including customer debt and supplier insolvency.
UKERC analysis in early 2025 showed that the risks created by zonal pricing would have driven up bids in auctions for offshore wind. The government decision against zonal, alongside other factors, contributed to the record offshore wind contracts auction in January 2026.
However, it is held back by slow progress on key enablers. The Clean Flexibility Roadmap provides groundwork for a flexible, low-cost, clean power system. But action is needed on smart meter roll-out and half-hourly metering if consumers are to benefit from cost saving flexibility.
Britain’s gas network will be essential for many years to come, even as gas consumption falls. It is essential to avoid high costs for vulnerable households left on the gas network. The future gas policy review must therefore consider all options, from connections reform to nationalisation, to ensure fairness.
These risks affect renewable energy, batteries and other clean energy solutions. The UK needs agile, ambitious policies to secure supplies of a range of materials that are vital for clean energy, electrified transport, and advanced manufacturing.
Forestry, agriculture and other biological sources can deliver controllable low carbon power, and act as a stand-by energy store to complement wind and solar, as well as offering carbon removal. But sustainability concerns must be addressed, and further policy support is required.
It can build public confidence in the transition, but we must go further to listen and respond to public concerns – including managing disagreement and opposition.