Electricity bill reforms could save households £300 a year by 2030

26 October 2026

A coalition of 20 energy suppliers, business groups, charities and other organisations has called on the government to overhaul electricity pricing, saying a package of reforms could cut household bills by about 20% by 2030.

The Electricity Bills Taskforce, coordinated by climate policy organisation E3G, has published eight recommendations aimed at reducing costs for households and businesses across Great Britain. Its modelling, based on analysis by Cornwall Insight, suggests a typical household electricity bill in 2030 could fall from a projected £956 to £641.

The proposals include moving all policy levies from electricity bills to general taxation, which the taskforce estimates could save households £150 a year and reduce bills for businesses by 16% in 2030.

Other measures include tackling energy debt, improving value for money in electricity network investment and reforming the wholesale market to limit excess profits. The taskforce also wants the government to accelerate changes to how the electricity system operates and make it easier for consumers to shift their electricity use to periods when power is cheaper.

It estimates that moving levies to general taxation would cost £8bn -£10bn a year until 2030. Additional targeted support for households in fuel poverty would cost a further £2bn, according to the proposals.

The taskforce says the government should act immediately on levy reform and targeted support, as these are the only two measures in its package that could lower bills in the short term. It estimates the wider package would require £10bn–£11bn a year in funding until 2030, with costs then declining.

The recommendations come as energy costs remain under pressure from volatile gas prices. A further 16% rise in Ofgem’s energy price cap has been forecast for January 2027.

Simon Francis, coordinator of the End Fuel Poverty Coalition, says:

“This report sets out how to bring electricity bills down for everyone and make alternatives to gas and oil heating cheaper still. These recommendations are a long term fix, rather than Ministers having to keep patching over the damage being done every year.

“But households already struggling need urgent help this winter too and the report sets out sensible recommendations for what should be done at the Budget.

“It is very rare to see energy suppliers, business groups, consumer groups and charities all publicly agreeing on a way forward. The fact that such a range of organisations have put their names to this report means Ministers should take it seriously and implement its recommendations without delay.”

Susie Elks, coordinator of the Electricity Bills Taskforce and senior policy advisor at the independent climate change think tank E3G, adds:

“Millions of households and businesses are struggling with their energy bills because of our dependence on expensive and volatile fossil fuels. By removing levies from bills and unleashing the cheaper cost of renewables, the government can lower bills today for all households.”

The taskforce is calling for the government to oversee delivery of all eight recommendations through a minister-led process. It says the savings will depend on the precise combination of measures adopted. 

The full report ‘Lowering GB Electricity Bills, Recommendations for Government’ is available here.