Britain’s energy system faces mounting criticism for being outdated, expensive, and overly reliant on volatile global fossil fuel markets, a situation that many say is increasingly harming household finances and domestic industries. Recent protests have erupted as consumers prepare for expected rises in energy bills this winter, a development largely linked to disruptions in global gas supplies due to the ongoing conflict in Iran.
The challenges confronting the UK’s power sector are not unique, as other countries also grapple with transitioning from fossil fuels to cleaner, renewable energy sources while maintaining reliability and affordability. However, the predicament is particularly notable given the UK's historical role as the origin of the industrial revolution and its early development of a nationalised electricity grid.
Two recent books offer contrasting analyses and solutions for the UK’s energy troubles. Arthur Downing, author of *Power and the People* and a recent appointee to the UK energy department, traces much of the sector’s current fragility to the privatisation waves of the 1980s. His work highlights that during the early 20th century, state ownership allowed rapid infrastructure expansion and lower prices, exemplified by the Central Electricity Board’s construction of a pioneering 3,000-mile national grid between 1929 and 1934. In contrast, today’s private electricity transmission companies plan to build only about 620 miles of high-voltage grid over a comparable period, costing billions more.
Downing criticises privatisation for failing to deliver the promised efficiency gains or sustained price reductions, noting that electricity prices began rising significantly after 2003 and now impose severe burdens on consumers and industries. Additionally, the transition toward renewables has introduced complexity into a system described by Downing as “fragile, fragmented, comically complicated and hopelessly dependent on imported fossil fuels.” This complexity has required billions in subsidies to incentivise investments in renewable capacity, a pattern replicated globally.
His proposed solution involves a radical overhaul: a centrally planned, mutualised energy system that neither fully nationalises nor privatises but shifts policy focus toward citizens rather than producers. Downing suggests partial or full nationalisation of natural monopolies like gas-fired power plants, which currently receive subsidies, believing state control could lower costs by ending such subsidies and stabilising prices. He also advocates for state involvement in offshore wind and long-term storage projects, coupled with some decentralisation. The government’s recent establishment of Great British Grid, an entity investing in transmission infrastructure, reflects steps in this direction.
In contrast, Oxford economist Dieter Helm, whose book *Climate Realism* critiques existing climate strategies, offers a more sceptical view of the UK's approach. Helm argues that efforts to decarbonise have led to costly and inefficient reliance on gas "peaker" plants and standby generation. He raises concerns about the environmental impacts and costs of battery storage, despite its role in enhancing renewable reliability. Helm acknowledges fossil fuels still dominate the global energy system and criticises the ineffectiveness of current climate policies, including carbon pricing, which averages only about $21 per metric tonne of CO2 worldwide—far below levels needed to drive substantial emissions reductions.
Helm’s proposals rely on the idea that countries could choose to unilaterally decarbonise as a form of “virtuous altruism” and that carbon taxes could provide an effective market signal for emission cuts. However, critics point to the impracticality of such unilateral action and the historical shortcomings of carbon pricing mechanisms. Helm also downplays some climate change risks and highlights alleged benefits, such as longer growing seasons, which has drawn criticism for omitting the experiences of vulnerable populations in tropical regions and low-lying islands.
Both authors agree that the UK’s energy system faces a critical juncture but diverge sharply on solutions. Downing’s approach focuses on state-supported reform and mutualisation to balance decarbonisation with affordability, while Helm questions current climate policies’ efficacy and underscores the trade-offs involved in transitioning energy systems. As the UK government commits to net-zero targets and energy reform, its ability to navigate these complex challenges will be closely watched domestically and internationally.