London Daily

Focus on the big picture.
Tuesday, Nov 03, 2026

UK weighs plan to drive down energy demand as winter looms

UK weighs plan to drive down energy demand as winter looms

Ministers are concerned about browbeating Brits with energy demands so soon after tough COVID measures.
Liz Truss’ ministers don’t like telling Brits what to do — but measures to cut energy demand are being actively considered in her government as winter fast approaches.

With concern mounting over U.K. energy security, the risk of shortages, and the huge cost to the government of its support plans, Truss' ministers — instinctively way of state intervention — have been considering options to drive down usage, officials said.

One U.K. official said the question of demand reduction was a “continuing discussion” within government and that any measures would most likely be targeted at businesses rather than consumers.

Despite announcing a multibillion-pound market intervention to reduce soaring household and business energy bills, Truss — whose government has this week been gripped by an economic crisis — has so far refused to countenance the kind of rationing measures enacted by the EU and many member countries in response to soaring costs and supply fears.

The European Commission has asked member countries to cut gas demand by 15 percent and energy ministers will meet Friday to decide on new proposals to cut peak-hour electricity demand by 5 percent. No such measures have been announced by the U.K.

Energy analysts and MPs have called on the Truss administration to consider options including an information campaign targeted at households and businesses; obligations on landlords and households to reduce demand; or specific energy-saving targets — either voluntary or mandatory — for businesses.

A mass public information campaign — like those seen in other European countries including Germany which has outlined energy-saving tips for households — has not been completely ruled out. However, the U.K.’s new crop of libertarian-leaning senior ministers is concerned about browbeating the population into changing its behavior, so soon after the major restrictions on personal freedoms imposed during the COVID-19 pandemic.

Ed Birkett, head of energy and climate at the center-right think tank Onward — which has called for a demand-reduction strategy, including a public awareness campaign — said that while it is “understandable” ministers are reluctant to tell people to ration energy, the situation is too serious for the government not to act.

“Ministers might not want energy rationing but, in the event of shortages, it's the law of the land. Industrial and business customers would be turned off first, and then households would start to be cut off,” Birkett warned.

“It's much better to cut energy demand in a coordinated way, rather than resorting to emergency rationing measures. Those kind of emergency disconnections would have a negative impact on growth, as businesses and households wouldn't know when their energy supply would be on or off.”

Lower energy demand would also be likely to drive down the wholesale price of gas and electricity, thus limiting the cost of the government’s plans to cap average household bills at £2,500 for two years and effectively halve businesses’ energy costs for six months.

It is estimated that the final costs of the consumer plan could be as high as £150 billion over two years, while the business plan could cost between £25 billion and £40 billion. The final impact of both on the public finances will depend upon fluctuations in the wholesale price of energy.

“The price cap means that government is now on the hook for a big share of our energy bills,” said Adam Bell, head of policy at the Stonehaven consultancy and a former government adviser on energy. “Investing in reducing demand now could radically reduce this enormous liability.”

U.K. ministers have also noted demands from some Conservative MPs for more action on demand reduction, with some fearing that generous government help with energy bills will mean consumers and businesses use more energy, threatening the country’s supply.

Paul Maynard, MP for Blackpool North and Cleveleys warned earlier this month that trying to “subsidize consumption without also trying to reduce demand” would “cause immense risk of blackouts come this winter.”

Business and Energy Secretary Jacob Rees-Mogg believes that, with energy bills still twice as high as they were this time last year, domestic consumers are likely to reduce demand without the need for any government intervention. But he is more open to measures aimed at reducing businesses’ energy usage, the U.K. official said.

The tricky politics of suggesting a reduction in energy use — particularly at a time when the government's poll ratings are in free fall — will also be weighing on the minds of British ministers.

In 2013, then-Prime Minister David Cameron was forced to issue a clarification after his spokesperson suggested Brits might want put on a sweater to help lower their energy bills.
Newsletter

Related Articles

0:00
0:00
Close
House of Lords Advances Representation of the People Bill to Modernize Electoral Law Ahead of General Election
Financial Markets and Private Equity Assess Tax and Corporate Realignment Following Recent Chancellor Budget Adjustments
Justice Committee Warns Legal Aid Is a Service in Managed Decline Due to Inadequate Government Funding Responses
Royal Navy Intercepts Russian Intelligence Vessel and Warships Across Intensive North Sea Operations
Business and Trade Committee Slams Government Policy on China as Fragmented and Lacking Strategic Direction
Home Secretary Shabana Mahmood Softens Immigration Plans Following Intensive Cabinet Backlash Over Settlement Timelines
Automotive Industry Data Reveals Continued Acceleration in Battery Electric Vehicle Registrations Across British Dealerships
High Court of England and Wales Rules on Landmark Legal Challenge Regarding Local Government Housing Mandates
Department for Energy Security and Net Zero Approves Expanded Offshore Wind Infrastructure Along Scottish Coastline
Competition and Markets Authority Launches Broad Investigation Into Artificial Intelligence Infrastructure and Cloud Partnerships
United Kingdom and European Union Launch High-Level Preparations for Bilateral Defense and Security Summit in Brussels
National Health Service England Unveils Emergency Workforce Reforms to Alleviate Winter Accident and Emergency Pressures
Chancellor Rachel Reeves Finalizes Autumn Budget Adjustments to Meet Fiscal Rules and Fund Public Services
Bank of England Prepares for Interest Rate Decision Amid Rising Bond Yields and Inflationary Pressures
House of Lords Begins Detailed Legislative Scrutiny of Representation of the People Bill and Cyber Security Laws
Metropolitan Police Detain More Than Three Hundred Individuals Following Large-Scale Demonstration Outside London Embassy
Home Office Prepares Stricter Residency Rules Requiring Vulnerable Migrants to Wait Decade for Settlement Rights
Professional Mental Health Bodies Demand Statutory Regulation for Counsellors and Psychotherapists
National Grid Confirms Construction of Britain's Largest Electrical Substation to Power Teesside Data Centre
Prime Minister Keir Starmer Travels to Samoa for Commonwealth Summit Amid Debates on Economic Cooperation and Reparations
Home Office Implements Enhanced Digital Border Controls and Visa Processing Systems at Major Airports
Office for National Statistics Reports Stable Employment Participation Rates Across Regional Labor Markets
Department for Business and Trade Announces Strategic Partnership to Secure Critical Mineral Supply Chains
Scottish Government Unveils Regional Economic Development Strategy to Boost Advanced Manufacturing in Glasgow and Dundee
Treasury Officials Review Taxation Frameworks and Capital Gains Rules Ahead of Autumn Budget Disclosures
National Health Service Leaders Warn of Winter Capacity Pressures Across Acute Care Facilities
Bank of England Prepares for Key Interest Rate Decision Amid Sticky Inflation and Fiscal Policy Pressures
Home Office Expands Border Security Operations and Intelligence Sharing With European Partners
Office for National Statistics Reports Modest Retail Sales Growth Ahead of Crucial Christmas Trading Season
Welsh Government Unveils Strategic Plan to Boost Regional Technology Innovation and Digital Skills Training
Department for Environment Food and Rural Affairs Implements New Agricultural Subsidies Framework for English Farmers
Scottish First Minister John Swinney Announces Major Regional Infrastructure and Green Energy Investment Strategy
National Health Service Leaders Warn of Severe Winter Pressures and Mounting Accident and Emergency Backlogs
Bank of England Monetary Policy Committee Signals Cautious Interest Rate Path Amid Persistent Services Inflation
Chancellor of the Exchequer Rachel Reeves Finalizes Autumn Budget Framework Aiming to Close Public Sector Fiscal Gap
Department for Science, Innovation and Technology Prepares Enhanced Artificial Intelligence Safety and Cyber Defense Frameworks
United Kingdom Government Expands International Sanctions Framework Against Russian Shadow Fleet and Financial Enablers
Institute of Directors Reports Sharp Post-Budget Drop in Business Confidence Despite Long-Term Investment Intention Shifts
Chancellor John Healey Defends Sweeping Fiscal Adjustments and Household Support Packages Following Autumn Budget
Parliamentary Petitions Committee Schedules Major Legislative Debates on Special Educational Needs and Non-Stun Meat Labelling
Regional Devolution and Good Growth Fund Frameworks Reshape Local Government Funding Across English Regions
Loughborough University Economic Analysts Highlight Substantial Uncertainty Surrounding Public Sector Efficiency Savings
British Legal Sector Drives Sixty Billion Pounds in Annual Economic Output While Employing Over Half a Million Professionals
Law Society Welcomes New Better Regulation Executive While Pressing for Long-Term Legal Aid Funding Reform
Metropolitan Police and Security Services Heighten Operations Across London Ahead of Large-Scale Public Demonstrations
Bank of England Economists Scrutinize Corporate Tax Adjustments and Public Sector Borrowing Pressures
Chancellor John Healey Defends Autumn Budget Tax and Spending Allocations Following Intense Parliamentary Scrutiny
Department for Environment, Food and Rural Affairs Implements Strict Water Quality Monitoring Rules Following Severe Rainfall and Flooding
Welsh Government Unveils Comprehensive Regional Housing Strategy to Address Rural Affordability and Homelessness Pressures in Cardiff
Office for National Statistics Reports Slowing Consumer Price Inflation and Steady Retail Performance Across United Kingdom Markets
×