UK energy system overhaul: Secretary says it's 'failing consumers'

The UK's energy system is currently failing consumers and requires "big changes" to maintain public support for the clean power transition, according to Energy Secretary Miatta Fahnbulleh. Speaking at Energy UK's Energy Matters conference on 14 October 2026, Fahnbulleh highlighted the UK's exposure to volatile global fossil fuel markets, grid connection delays, and network constraints as clear evidence that the system is "simply not working" for consumers.1 This stark assessment underscores the urgent need for a comprehensive overhaul to ensure energy security, affordability, and a reliable path to a clean energy future.

The UK energy system needs an overhaul to deliver affordable, reliable power. Fuse Energy is committed to making energy simple and transparent for your home. Click here to switch to Fuse Energy today.

The urgent need for UK energy system overhaul

Failing consumers and volatile markets

Energy Secretary Fahnbulleh's warning is a critical call to action, stating, "That is a reality that none of us can be happy with, and it is one that we are absolutely determined to turn around as a government". She clarified that this is not a criticism of individual businesses but a recognition that "even the best companies cannot compensate for a system that lacks sufficient coordination and long-term direction and that is failing in its central purpose of providing this essential good to the British public at reasonable cost".

The UK's energy market remains significantly exposed to volatile global fossil fuel prices, leading to price instability for consumers. This exposure means that international conflicts can deeply affect household finances. Understanding how these factors influence your bills can be complex, especially with the regularly adjusted energy price cap. The Department for Energy Security and Net Zero (DESNZ) was created on 7 February 2023, with responsibilities including ensuring the UK's energy security, delivering net zero, and protecting consumers.

Grid connection delays and network constraints

Significant grid connection delays and network constraints are hindering the integration of new, cleaner energy sources into the UK grid. Projects can secure funding and planning permission but still face uncertainty over when electricity infrastructure will be available, with some delays extending up to 15 years for sites without existing infrastructure. These delays affect renewable energy developers, industrial electrification, and even new housing developments. The problem stems from demand for connections growing faster than network capacity and the processes used to manage applications.

Government's strategic approach to reform

The 'number one test': direct consumer benefit

The government's determination to address these issues signals a period of significant change. Fahnbulleh emphasised that the "number one test" for any reforms will be direct consumer benefit, ensuring that consumers can afford the energy they use. This focus aligns with public backing for new energy legislation aimed at improving energy security, affordability, and consumer protection.

While measures like VAT cuts on energy bills offer some relief, Fahnbulleh stressed that "this cannot be a substitute for the big changes that we need to deliver in the energy system to drive down costs for good". The Warm Home Discount, for instance, provides a £150 one-off credit to eligible electricity bills in England, Wales, and Scotland, typically applied between October and March. However, such schemes are seen as breathing room, not a permanent solution to systemic issues.

Beyond short-term relief: driving down costs for good

The government aims to achieve among the cheapest wholesale electricity prices in Europe by 2035. This involves moving towards energy independence by doubling Britain's electricity generation capacity by the late 2030s and maximising UK oil and gas production as North Sea reserves decline. The strategy also includes decoupling power prices from gas by moving generators onto fixed-price contracts and removing legacy green levies from bills.

Building a resilient future: industry and innovation

The imperative of industry-government partnership

Fahnbulleh urged a strong partnership between industry and government to tackle these challenges, referencing state-backed companies like GB Energy and GB grid as models. This collaborative approach is vital for coordinating the massive investment and innovation required to modernise the electricity grid and ensure energy security. Ofgem, the independent regulator for Great Britain's gas and electricity markets, also known as the Office of Gas and Electricity Markets, plays a crucial role in protecting consumers and ensuring fair market competition.

Rebuilding the energy system for abundance

Fuse Energy believes that a truly effective overhaul requires a fundamental shift in how energy is generated, distributed, and consumed. Fuse's vision is to build a future with abundant energy, where it stops being a constant concern. This is achieved through a strategic approach of vertical integration, rebuilding the energy system from scratch to deliver terawatt-hours of the cheapest, cleanest energy possible. By owning the entire energy stack, from generation to customer experience, Fuse aims to optimise costs and drive efficiency, directly contributing to the government's goal of driving down costs for good.

Ensuring energy security and affordability for all

Empowering consumers through systemic change

The focus on direct consumer benefit is paramount. An effective energy system overhaul must translate into lower bills, greater reliability, and more control for households. This means not only addressing wholesale market volatility but also improving the efficiency of the grid and empowering consumers with better tools and options.

Fuse Energy's commitment to a digital-first experience, transparent billing, and 24/7 human customer support is designed to put power back into the customer's hands. By offering easy home energy upgrades like smart meters, solar, and batteries, Fuse enables customers to take control of their energy usage and benefit from a more abundant, cleaner supply.

The path to a coordinated and sustainable energy future

The overhaul of the UK energy system is a complex but essential undertaking. By addressing the current failures and implementing strategic reforms through industry-government collaboration, the UK can build a future where energy is abundant, affordable, and truly serves its consumers. This aligns with the broader national objective: to ensure that the transition to clean energy is not just sustainable for the planet, but also equitable and beneficial for every household across the UK.

Managing your energy bills should be clear and easy to understand. Fuse Energy focuses on straightforward pricing, so you can see exactly what you're paying without unnecessary complexity. If you have a smart meter, you can view detailed usage data through the app or website, helping you understand how you can lower your bills. Our 24/7 human support team is always on hand with fast response times whenever you need help. Click here to switch to Fuse Energy today. Find out about our mission by clicking here.