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ARTICLE · 06 SEPTEMBER 2026

Why is Cheap Electricity So Expensive?

Weightmans LLP
Weightmans LLP
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Weightmans LLP

Weightmans LLP

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As UK household energy bills reach a three-year high of £1,723 annually, the persistent link between electricity and gas pricing raises critical questions about the future of energy costs. With renewable sources now generating over 52% of Britain's electricity, why do consumers still pay prices dictated by expensive gas generation?

United KingdomEnergy and Natural Resources
Christine Rishton
Christine Rishton

Untangling Electricity from Gas: The future of UK Energy pricing

In the UK we are probably now all too aware that our energy prices are linked with gas. However, how many of us are aware the reason for that historical link, the purpose that it serves and whether there is a benefit to detaching energy prices from gas prices? With the latest energy price cap seeing the average household bills rising to £1,723 per year, hitting a three-year high, many of us are left pondering why cheap, renewable electricity still costs the earth. 

As we move towards net zero, with renewable infrastructure increasing nationwide, we are repeatedly told how such renewables offer a cheap alternative to their fossil fuel counterparts. However, the cost of energy to the consumer remains dictated by, and seemingly inextricably linked to, gas prices.

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