Executive Summary
Every major political party recognises that the UK’s energy system needs reform. However, their policies primarily focus on how electricity is generated—whether through renewable energy, nuclear power, or domestic oil and gas production.
This policy takes a different approach.
Rather than starting with the supply of electricity, it starts with the question:
What should households actually pay for electricity?
Our conclusion is that the UK’s long-term objective should be a national standard retail electricity price of 15p per kWh, with a transparent network subscription replacing standing charges.
Generation policy remains important, but unless the retail market itself is redesigned, cheaper generation alone does not guarantee cheaper household bills.
The Current Political Debate
The UK’s political parties largely debate:
- Should we build more wind farms?
- Should we build more nuclear stations?
- Should we produce more North Sea gas?
- How quickly should Net Zero be achieved?
These are important questions.
However, they rarely address:
- Why household electricity prices remain among the highest in Europe.
- Why standing charges vary so much across the country.
- Why consumers must navigate hundreds of tariffs.
- Why electricity pricing is so complex.
- Whether the retail market itself should be fundamentally redesigned.
Comparison of Policies
| Policy Area | This Policy | Labour | Conservatives | Liberal Democrats | Reform UK | Green Party |
| National target electricity price | ✅ 15p/kWh | ❌ | ❌ | ❌ | ❌ | ❌ |
| Standing charges abolished | ✅ Replace with transparent subscription | ❌ | ❌ | ❌ | ❌ | ❌ |
| Simple national tariff | ✅ | ❌ | ❌ | ❌ | ❌ | ❌ |
| Universal off-peak electricity | ✅ | ❌ | ❌ | ❌ | ❌ | ❌ |
| Fundamental retail market reform | ✅ | Limited | Limited | Limited | Limited | Limited |
| Focus on reducing heat pump running costs | ✅ | Partial | Partial | Partial | Partial | Partial |
| Major renewable expansion | Compatible | ✅ | Partial | ✅ | Limited | ✅ |
| Nuclear support | Compatible | ✅ | ✅ | Open | ✅ | Limited |
| Grid investment | ✅ | ✅ | ✅ | ✅ | Partial | ✅ |
Labour
Labour’s energy policy centres on delivering a low-carbon electricity system through increased investment in renewable generation and electricity networks.
Key proposals include:
- Great British Energy
- Clean Power by 2030
- Offshore wind expansion
- Grid upgrades
- New nuclear investment
- Energy independence
Official policy:
Labour – Clean Energy Superpower Mission
Strengths
- Strong investment in renewable generation.
- Significant grid investment.
- Long-term energy security.
Limitations
Labour does not propose:
- abolishing standing charges;
- a national electricity price target;
- simplifying domestic tariffs; or
- redesigning the retail electricity market.
Conservative Party
The Conservative Party generally focuses on increasing domestic energy production while maintaining a mixed energy system.
Key themes include:
- North Sea oil and gas
- New nuclear
- Energy security
- Slower Net Zero transition
- Private sector investment
Official policy:
Conservative Party – Policy Hub
Strengths
- Focus on reliable generation.
- Strong support for nuclear power.
- Domestic energy production.
Limitations
The party does not propose major reforms to household electricity pricing, standing charges or supplier tariffs.
Liberal Democrats
The Liberal Democrats place significant emphasis on reducing fuel poverty and increasing renewable generation.
One notable proposal is the Essential Energy Guarantee, providing discounted energy for every household’s basic needs.
Official policies:
Liberal Democrats – Energy Policies
Essential Energy Guarantee
Strengths
- Direct support for vulnerable households.
- Focus on affordability.
- Strong renewable policies.
Limitations
The existing retail market structure would largely remain unchanged.
Standing charges, regional pricing and tariff complexity would continue.
Reform UK
Reform UK’s approach focuses on reducing bills by changing climate and energy policy.
Their proposals include:
- Expanding North Sea oil and gas.
- More nuclear power.
- Removing many Net Zero costs.
- Reducing green levies.
Official policy:
Reform UK – Energy and Net Zero
Strengths
- Strong emphasis on affordability.
- Energy security.
- Lower policy costs.
Limitations
The retail electricity market itself would remain largely unchanged.
There is no proposal for:
- national electricity pricing;
- standing charge reform; or
- simplified tariffs.
Green Party
The Green Party advocates a rapid transition to renewable electricity alongside major investment in insulation, storage and community-owned energy.
Official policy:
Green Party – Powering Up Fairer, Greener Energy
Strengths
- Comprehensive renewable strategy.
- Community energy ownership.
- Long-term decarbonisation.
Limitations
Although the Green Party seeks lower bills through cheaper renewable generation, it does not propose fundamental reform of domestic electricity tariffs or standing charges.
How This Policy Is Different
This policy is not primarily about choosing between renewable energy, nuclear power or natural gas.
Instead, it asks:
What retail electricity market would deliver affordable electricity regardless of how it is generated?
The policy therefore proposes:
- A national target retail electricity price of 15p per kWh.
- A transparent monthly network subscription replacing standing charges.
- One simple national tariff available to every household.
- A universal off-peak rate to encourage demand shifting.
- Tiered pricing that rewards efficient electricity use.
- Separation of generation costs from network costs.
- Competition based on customer service and operational efficiency, rather than confusing tariff design.
Generation technologies would continue to compete in the wholesale market, but households would benefit from a far simpler and fairer retail pricing system.
Conclusion
There is considerable political consensus that Britain needs more investment in energy infrastructure.
Where this policy differs is that it argues generation reform alone is not enough.
The UK also needs retail market reform.
A household does not experience the wholesale electricity market—they experience an electricity bill.
By focusing on the outcome that matters most to consumers—a simple, fair and affordable electricity price—this policy aims to complement, rather than replace, the wider debate about how Britain’s electricity should be generated.
References
- Labour – Clean Energy Superpower Mission
- Conservative Party – Our Plan
- Liberal Democrats – Energy Policy
- Liberal Democrats – Essential Energy Guarantee
- Reform UK – Energy and Net Zero
- Green Party – Powering Up Fairer, Greener Energy