The Policies That Could Actually Fix the UK Energy Crisis

Submitted by Bill Fernie

22nd July 2026

While I am conducting my own personal home experiment in cutting my energy use at home no amount of switching almost everything off can solve the energy crisis. Not using any of my oil heating cuts the bill to zero but means wearing extra clothes and only occasional quick blasts from a fan heater in one room at a time can reduce the electric bill but living in much less comfort.

So lets look seriously at what needs to be done.

Hard truths, real solutions, and why the next 12 months demand more than political slogans
The UK is heading into another brutal year for household energy costs. Bills remain high, global supply is unstable, and household energy debt has exploded to £3.1 billion. Millions are rationing hot water, cutting shower time, and heating only one room.

The previous article laid out the uncomfortable truth: the crisis is not going away.
This follow‑up tackles the harder question — what policies could actually fix it?

Not slogans.
Not gestures.
Not temporary VAT cuts.
Real, structural solutions.

Here are the policies that could genuinely change the UK’s energy future backed by data, not wishful thinking.

A National Energy Investment Programme
The UK invests far less in energy infrastructure than comparable economies

France invests 2× more per capita in energy infrastructure

Norway invests 3× more

The UK grid needs £50–60 billion in upgrades by 2035 (National Grid ESO)

Without investment, the UK remains exposed to global shocks.

What this policy would do
Upgrade the electricity grid

Expand storage capacity

Modernise transmission lines

Reduce reliance on imported gas

Lower long‑term wholesale prices

This is the foundation of any serious energy strategy.

A UK Strategic Gas Reserve
The UK has almost no gas storage
Before 2017, the Rough facility stored 70% of UK gas reserves.
After closure, the UK was left with less than 2% of Germany’s storage capacity.

This is why UK gas prices spike faster than anywhere else in Europe.

What this policy would do
Build or expand national gas storage

Smooth out price spikes

Reduce winter volatility

Protect households from sudden wholesale surges

This is one of the most effective short‑term stabilisers.

A Windfall‑Proof Energy Market Reform
The problem
Privatised energy companies can make billions during crises because the UK’s market design allows wholesale price spikes to translate directly into retail bills.

The data
Wholesale gas prices rose 300% in 2022

Retail bills rose 54%

Energy company profits rose 40–200% depending on sector

What this policy would do
Cap profit margins during crises

Separate generation from retail supply

Prevent wholesale spikes from hitting households immediately

Introduce long‑term price smoothing mechanisms

This is how France and Spain kept bills lower than the UK.

A National Home Insulation Programme
The UK has some of the worst‑insulated homes in Europe
UK homes lose heat 3× faster than German homes

Poor insulation adds £500–£1,000 per year to bills

19 million homes need insulation upgrades

What this policy would do
Reduce household bills permanently

Cut national gas demand

Lower carbon emissions

Reduce winter energy debt

This is the single most cost‑effective long‑term policy.

A Domestic Renewable Expansion Plan
The UK’s renewable growth has slowed
Onshore wind approvals down 80% since 2015

Solar installation growth down 60%

Offshore wind auctions failing due to cost pressures

What this policy would do
Fast‑track onshore wind

Expand solar on public buildings

Reform offshore wind auction rules

Increase domestic generation

Reduce reliance on imported gas

More domestic generation = lower long‑term bills.

A Fair Energy Pricing System for Low‑Income Households
The current system punishes the poorest
Prepayment customers — often the poorest — pay more per unit than direct debit customers.

The data
Prepayment households pay £45–£90 more per year

1.2 million self‑disconnect at least once a month

42% of low‑income households ration hot water

What this policy would do
End the “poverty premium”

Introduce a social tariff

Automatically reduce bills for vulnerable households

Prevent self‑disconnection

This is basic fairness.

A UK Energy Sovereignty Strategy
The UK imports:
60% of its gas

80% of its oil

40% of its electricity (interconnectors)

What this policy would do
Expand domestic generation

Increase storage

Diversify supply routes

Reduce exposure to global conflicts

Energy sovereignty is not isolation — it is resilience.

A National Debt Relief Scheme for Energy Arrears
Household energy debt is now a crisis
£3.1 billion in arrears

3.7 million households behind on bills

1 in 10 households turned off heating entirely last winter

What this policy would do
Provide structured debt relief

Prevent long‑term debt spirals

Reduce pressure on suppliers

Stabilise the retail market

This is essential to prevent a social crisis.

A Long‑Term Wholesale Price Stabilisation Fund
The UK is uniquely exposed to global price shocks
Because it has low storage and high import dependence.

What this policy would do
Smooth out wholesale volatility

Reduce sudden bill spikes

Protect households during global crises

This is how Japan and South Korea manage LNG volatility.

The uncomfortable truth — and the path forward
The UK’s energy crisis is not caused by one factor.
It is caused by decades of underinvestment, privatisation without safeguards, global conflicts, tight gas markets, and poor housing efficiency.

There is no single fix.
But there are real solutions.

The policies above — investment, storage, market reform, insulation, renewable expansion, fair pricing, sovereignty, debt relief, and price stabilisation — are the only credible path to lower bills, lower debt, and a stable energy future.

Anything less is just political noise.

Bill Fernie