Why Are Energy Prices So High in the UK?

UK households have been hit with some of the highest energy bills on record. Even though wholesale prices have started to ease, many people are still asking:
“Why are energy prices still so high?”

At Solent Renewables, we install hundreds of solar and battery systems across the South Coast every year, and this question comes up on almost every quote. Here’s a clear, simple breakdown of what’s driving your bills — and what you can do about it.

🔥 1. The UK Still Relies Heavily on Gas

Even if your home uses electricity, a large portion of the electricity grid is powered by natural gas.
When gas prices rise, electricity prices follow.

Key reasons gas is expensive:

• Global supply shortages
• Increased demand during cold winters
• Disruption in international markets
• Reduced storage capacity in the UK

Ofgem provides regular updates on wholesale energy markets:
👉 https://www.ofgem.gov.uk/energy-price-cap

⚡ 2. The Energy Price Cap Isn’t a Price Limit

A common misunderstanding is that the “price cap” limits your total bill.
It doesn’t.

The energy price cap limits the unit rate and standing charge, not the overall amount you pay. If you use more, you pay more.

The cap is reviewed every three months, which means prices can change frequently, often rising faster than wages.

💷 3. Standing Charges Have Increased

Even if you use no electricity or gas, you still pay a standing charge — and these have risen sharply.

Why?

• Network infrastructure upgrades
• Supplier failures (more than 30 collapsed in 2021–22)
• Costs passed on to consumers through Ofgem rules

This is why many homeowners feel like their bills are high even when they’re trying to reduce usage.

🌍 4. Global Energy Instability

The UK is not energy-independent. This means international events directly impact your bills.

Examples include:

• Conflicts affecting gas pipelines
• LNG (liquefied natural gas) shipping costs
• Weather events disrupting supply
• Global competition for gas (especially from Asia)

Because of this, UK households are exposed to worldwide price changes far more than some European countries.

🛠️ 5. Network Costs & Grid Upgrades

A growing amount of your bill goes towards:

• Maintaining the national grid
• Upgrading ageing infrastructure
• Integrating renewable energy
• Funding energy supplier support schemes

These costs are built into the standing charge and unit rate.

📈 6. The “Energy Crisis Hangover”

Even though the initial energy crisis started in 2021–2022, the effects are still being felt:

• Suppliers locked into expensive long-term contracts
• Increased debt across the energy sector
• Slow reduction of retail prices despite lower wholesale costs

Many suppliers are still recovering financially, which keeps prices higher than expected.

🌞 So… What Can Homeowners Do?

While you can’t control the global energy market, you can control how much grid electricity you rely on.

This is why so many homeowners across Hampshire and the South Coast are choosing:

• Solar panels to generate free electricity
• Battery storage to use that power day and night
• Smart tariffs to buy cheap electricity overnight
• EV chargers to reduce petrol/diesel costs

💡 Solar + Battery = Long-Term Protection

By generating and storing your own electricity, you can:

• Reduce your grid usage by 60–90%
• Avoid high daytime unit rates
• Cut the impact of rising standing charges
• Protect yourself from future price cap increases

More homeowners are doing this now because it provides control and stability during unpredictable energy markets.

🏡 Ready to Reduce Your Energy Bills?

We design solar and battery systems tailored to your home — no guessing, no generic quotes.

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Start reducing your energy bills now — book your free solar and battery quote with us today.