Renewable Energy Association

Ministers have already used one lever (cutting VAT from electricity bills) but higher gas prices are pushing bills up regardless, hence another lever needs to be used With Ofgem announcing a 4% rise in the energy price cap from October, as the closure of the Strait of Hormuz knocks out roughly a fifth of the world’s LNG supply, it is increasingly clear that the government needs to take urgent action on bills to protect households and the broader economy.

Britain has an uncomfortable distinction: some of the highest electricity prices in Europe. While it is easy to blame renewable energy, that diagnosis is wrong. The structure of Britain’s power market means wholesale gas prices set the electricity price for much of the day. When gas spikes, as it did after the Russian invasion of Ukraine and during recent geopolitical tensions, household and industrial bills rise with it.

Faced with geopolitical instability, the volatile fossil fuel market and rising energy demand, policymakers are increasingly framing the clean energy transition as a trade-off: security versus decarbonisation. On top of this regressive framing, knee-jerk calls to expand the North Sea oil and gas production are often presented as pragmatic responses to immediate pressures.

The UK is entering a new era for energy – one where clean power, low-carbon heating & cooling, energy security and regional growth must work together. Geothermal has a unique opportunity to help deliver this future, providing reliable renewable energy for applications ranging from heat networks and power generation to industry, agriculture and community-scale solutions.

Scrapping VAT on electricity bills is welcome, but moving all levies off bills (and onto general taxation) would provide the real ‘breathing space’ that is required Andy Burnham did not take long to make his mark. One of his first acts (day 2) as Prime Minister was to strip VAT from household electricity bills, a measure that will run for at least six months from October 2026. The REA has pressed for this for years and is accordingly delighted to see it done.

New Prime Minister. New Cabinet. New opportunity to accelerate delivery. The REA has published a document setting out early actions for the Prime Minister’s first 100 days, showing how targeted policy can unlock investment, drive regional growth and deliver prosperity across the UK. It explores: How Manchesterism can unlock regional growth through circular economy investment and Local Area Energy Plans.

The letter is penned with the aim of calling on the next Government to: Reduce the cost of electricity for households and businesses. Keep the energy transition on course through practical, long-term policy. Maintain investor confidence to unlock the private investment needed to deliver clean energy, electrification and economic growth. We’re pleased to stand alongside our industry partners in making the case for an ambitious, stable and investable energy future for our members.

REA at London Climate Action Week 2026 What a week it’s been! As London Climate Action Week comes to a close, we’re reflecting on a whirlwind of events. From venue to venue, the REA team joined industry leaders and policymakers to help drive the conversation on the clean energy transition. In partnership with Field, Watt Communities Want explored how meaningful engagement can put communities at the heart of the clean energy transition.

Cross-party BioRevolution Coalition launches with Parliamentary petition to unlock the UK’s multi-trillion-pound bioeconomy A new campaign calls on the Government to level the playing field for UK bio-based industries, warning that the UK is the only G7 nation without a national bioeconomy strategy. Convened by the Bio-based Industries Association (BBIA), the BioRevolution Coalition is a campaign that launched on 9th June 2026 and is backed by MPs from across the House of Commons.

Industry calls for policy reforms to unlock AI growth while strengthening Britain’s electricity system, drawing on evidence from the International Energy Agency, NESO, National Grid Partners, NVIDIA and the Alan Turing Institute to show that intelligent, flexible computing infrastructure supports economic growth and the energy transition.