The UK must urgently rethink its long-term energy strategy if it is to bring down electricity costs, protect consumers and unlock the full potential of electrification, the Managing Director of Scotland’s largest trade association has insisted.
Alan Wilson, MD of electrotechnical trade body SELECT, writes this guest article. He says that a mix of renewables and nuclear are the key to cheaper power – and that electrical contractors who keep pace with technology can reap the rewards…
With electricity prices now more than triple what they were two decades ago, structural weaknesses in the UK’s energy system are placing sustained pressure on households, businesses and the electrical industry itself.
In the early 2000s, electricity cost just a few pence per kilowatt hour. In 2023, that figure rose to around 27p per kWh, and even as markets stabilise, prices remain far above historic norms. These costs are not a short-term anomaly but the result of long-term policy and investment decisions.”
Despite significant growth in renewables, gas still sets the price of electricity much of the time. When global gas prices spike, electricity prices inevitably follow.
Add to that the cost of upgrading ageing grid infrastructure, environmental levies and years of underinvestment in firm, low-carbon generation, and it becomes clear why prices have risen so sharply.
Wind and solar are among the lowest-cost forms of generation available. Once built, they require no fuel, are insulated from global commodity markets and continue to fall in cost as technology improves.
Energy success story
Offshore wind, in particular, is already one of the UK’s greatest energy success stories, but the challenge lies in managing variability and ensuring security of supply – something renewables alone cannot deliver.
This is where nuclear power becomes essential. Nuclear provides the stable, low-carbon baseload electricity that complements renewables. While the upfront costs are significant, nuclear plants operate for decades, offering predictable output and price stability that gas simply cannot match.
With much of the UK’s existing nuclear fleet approaching the end of its operational life, Mr Wilson said new projects must be supported, alongside a clear strategy for the deployment of small modular reactors (SMRs) – with positive implications for those electrotechnical professionals who are prepared to adapt.
For electrification to succeed, whether that’s electric vehicles, heat pumps or industrial processes, we need firm, reliable power as well as renewables.
As the energy system evolves, electricity will become the dominant energy source across heating, transport and industry.
That means increased demand for battery storage, EV charging, smart technologies, solar PV and grid reinforcement, with electrical contractors at the forefront of delivering this transition.
This transition represents one of the biggest opportunities the electrotechnical sector has ever seen. Those who understand the direction of travel and invest in skills and expertise now will be best placed to lead the industry forward.
A balanced mix of renewables and nuclear offers the most credible path to long-term affordability, energy security and decarbonisation.
If we get the strategy right, electricity can be not just cleaner, but cheaper for everyone.
