A new report by the Public Accounts Committee (PAC) has raised concerns over the security of the UK‘s energy supply, warning that millions of households remain vulnerable to future price spikes.
The report highlights rising consumer energy debt, the nation’s exceptionally high electricity costs, and the lack of adequate protections against market fluctuations.
Despite the easing of the recent energy price crisis, UK electricity bills remain the highest among comparable nations.
By 2023, consumer debt for domestic gas and electricity soared to £3.7 billion, more than double the £1.8 billion recorded in 2021. Electricity prices are currently four times higher than gas, making energy affordability a critical issue.
The crisis pushed an estimated 238,000 households into fuel poverty, with many families forced to reduce spending on essential items like food.
The report also found that certain vulnerable groups, including people with disabilities who face higher energy costs, were excluded from existing support schemes.
The PAC commended the Department for Energy Security and Net Zero (DESNZ) for its rapid implementation of emergency schemes during the crisis. However, the report warns that the government is still unprepared for another energy price spike, as current measures remain inadequate.
The government’s £44 billion support package provided financial relief but was largely universal, meaning many households that did not require assistance still received it. Meanwhile, some of the most vulnerable families missed out. The PAC criticised DESNZ for its slow progress in developing more targeted support, stating that three years after the crisis, a more effective and efficient system should already be in place.
The government’s long-term strategy to reduce household energy bills is focused on expanding renewable energy sources. However, the PAC report highlights delays in key initiatives, such as reviewing cheaper off-peak electricity rates and shifting environmental levies from electricity to gas bills.
Concerns have also been raised over the reliability of energy supply during periods of low renewable generation.
In January 2025, UK energy production briefly fell below safety margins, prompting speculation about potential blackouts. The PAC has urged the government to outline clear plans for ensuring sufficient energy capacity during calm weather conditions when wind and solar output is low.
The report also criticises energy suppliers for failing to provide adequate support and advice to struggling billpayers.
Many households facing financial hardship have reported difficulties in accessing assistance. The PAC is calling for a stronger debt advice service to help consumers manage rising energy costs.
Sir Geoffrey Clifton-Brown MP, Chair of the Committee, stressed the need for the government to learn from past crises and implement a more targeted and effective energy support system. He warned that geopolitical instability and increasing demand for electricity could lead to further price volatility, making long-term energy security a pressing issue.
With UK households already burdened by some of the highest energy costs in the world, the PAC’s findings highlight the urgent need for government action to stabilise the energy market, protect vulnerable consumers, and ensure a secure and sustainable supply for the future.
