UK Energy Crisis: How Can Consumers Weather the Storm?

As British households grapple with soaring energy costs, a closer look at the market reveals both systemic challenges and practical solutions. The current energy landscape presents a perfect storm of factors driving up consumer bills, but strategic interventions could offer significant relief.

The Perfect Storm

The UK’s heavy reliance on gas-fired power plants continues to leave consumers vulnerable to market volatility. Despite the country’s impressive strides in renewable energy deployment, electricity prices remain firmly anchored to international gas markets, creating a ripple effect across the economy.

“The relationship between gas and electricity prices in the UK is particularly pronounced,” explains energy analyst Sarah Thompson. “When gas prices spike, electricity costs follow suit, regardless of how much renewable energy we’re generating.”

From 1 April to 30 June 2025 the price for energy for a typical household who use electricity and gas and pay by Direct Debit will go up by 6.4% to £1,849 per year from £1738 per year currently. For a typical household, this will add £9.25 a month to their energy bills. 

The price cap set is 9.4% (£159) per year higher than the price cap set for the same period last year, from 1 April to 30 June 2024 (£1,690).  

With increases in both water and council tax bills from April and further energy price rises forecast for later in the year, life will be even more difficult for those struggling with the cost of heating their homes.

Also, the annual figures produced use what is described as a typical household in the UK. This assumes usage of 2,700 kilowatt hours of electricity, 11,500 kilowatt hours of gas. With the aged housing stock in the UK many homes use substantially more energy than the annual calculation uses as in the table below.

	Gas Kwh	Electric Kwh	New annual cost
Low User	7500	1800	£1,326
Typical user	11500	2700	£1,849
Higher user	17000	4100	£2,612

Dismantling Cost Barriers

The government’s policy framework creates additional challenges through its uneven levy structure. Electricity bills bear a heavier tax burden than gas, creating what industry experts have dubbed a “perverse incentive” that undermines national efforts to achieve net-zero emissions.

Geographic location also shapes energy costs significantly. Due to varying transmission costs and local distribution charges, households face markedly different bills depending on whether they’re located in southern regions like Cornwall or northern areas such as Aberdeen.

The energy cost crisis continues to deepen, driven by suppliers maintaining high standing charges and the absence of social tariffs, despite sustained advocacy from charitable organizations. The impact falls heaviest on low-income households, with 36.4% of UK homes now classified as “fuel poor” – spending more than 10% of their income on energy. A recent study by ResQ, a customer service consultancy, reveals an even more troubling trend: 41.1% of consumers are either currently in energy debt or expect to fall behind on payments within the year. The total energy debt has now reached £3.8 billion.

Controversy Over Standing Charges

Ofgem is facing criticism over its proposals to overhaul standing charges on energy bills. Standing charges, the fixed daily fees for connecting to the energy supply, have risen by 43% since 2019, now exceeding £300 per year. While Ofgem proposes offering tariffs without these charges, concerns are rising that vulnerable customers may be negatively impacted. “What Ofgem is proposing is more to hide standing charges within the unit rates,” argues Jonathan Bean from Fuel Poverty Action.

The Power of Strategic Action

Faced with these challenges, consumers best option is to focus on high-impact interventions to significantly reduce their energy consumption without breaking the bank.

Home insulation emerges as the clear frontrunner in the efficiency stakes. Recent studies indicate that proper roof insulation alone can slash energy consumption by up to 45%, while wall insulation contributes an additional 15% reduction. These improvements, while requiring initial investment, typically pay for themselves through reduced energy bills.

Technology and Behavior: A Dual Approach

The transition to LED lighting represents another compelling opportunity. “It’s one of the simplest yet most effective changes households can make,” notes efficiency expert James Miller. “The return on investment is typically measured in months rather than years.”

But technology alone isn’t the answer. Behavioral changes, such as strategic thermostat management and efficient use of radiators and electrical appliances, can yield substantial savings without any upfront cost. This is where Groundwork Yorkshire’s team of Green Doctors are particularly effective, in that they are able to provide free independent energy advice, providing free LED replacement bulbs, and advice on efficient boiler usage and other tips, alongside retrofitting guidance.

Looking Ahead: A Call for Systemic Change

As the UK continues its energy transition, solar installations and other renewable technologies are becoming increasingly attractive options for homeowners. While the initial investment can be substantial, falling technology costs and rising energy prices are steadily improving the economic equation.

The path forward requires a balanced approach: addressing systemic market issues while empowering consumers to take control of their energy consumption. While individual actions can provide relief, experts agree that broader systemic changes are needed. Dhara Vyas, chief executive of Energy UK, warns of “huge concerns about affordability” and record levels of customer debt, “I don’t think the standing charges proposal and new price cap is the way to tackle those big concerns,” said Vyas.

By focusing on the most impactful interventions first, some households can mitigate the current crisis while building resilience against future market shocks. For many though, especially those in private rented accommodation and those that have prepayment meters, it’s not so clear how far their own efforts can alleviate the issues.

For now, the message is clear: in the face of complex market challenges, strategic action offers the most practical path forward for UK consumers seeking to manage their energy costs.