UK electricity market overhaul could save up to £105bn by 2030
11 June 2026
Reforming Britain’s electricity market through a “Single Buyer” model could save consumers and businesses between £44bn and £105bn by 2030, according to a report from Common Wealth, a progressive policy think-tank.
The report says wholesale electricity prices remain elevated despite the rising share of renewable generation in the UK power system.
It argues the current market structure, designed when fossil fuels dominated electricity generation, allows gas-fired power stations to set wholesale electricity prices around 80-90% of the time even though they account for roughly a quarter of total output. This dynamic enables established generators to benefit from higher electricity prices during gas-driven price spikes, even where their own production costs are largely unchanged.
Under the proposed Single Buyer model, a central body would purchase electricity and coordinate supply contracts, reducing exposure to volatile gas markets and lowering system costs, the report said.
The analysis models three scenarios based on outcomes following the 2026 Strait of Hormuz crisis, which has pushed up global energy prices.
In a low-price case, cumulative savings between 2026 and 2030 are estimated at £44.3bn. A central scenario projects £58.6bn in savings, while a high-disruption scenario produces estimated savings of £105bn.
The report assumes Britain meets its Clean Power 2030 target in all cases. Households could save between £130 and £268 a year by 2030, with cumulative savings per household over 2026–2030 estimated at £553 to £1,312.
The report concludes:
“The Single Buyer is not a radical departure — it revives proven principles of coordination and public accountability, updated for the renewables age. With the Hormuz crisis demonstrating once again the cost of fossil fuel dependence, this reform offers a once-in-a-generation opportunity to cut bills, end gas price exposure and rebuild public consent for the clean power mission.”
