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Energy Outlook 2025: What's happening in the energy market?

Energy news

Our Energy Specialists look at the energy outlook for 2025.

10 March - People living near new pylons in Great Britain will get hundreds of pounds off their bills, as part of government plans to boost energy infrastructure. Households within 500 meters of new pylons will get discounts of up to £2,500 over 10 years, starting in 2026. The government said such incentives could help reduce opposition and delays to new projects, which are needed to deliver more clean energy.

6 March - The UK and Ireland confirm plans for connecting offshore windfarms to their respective energy networks. The two neighbouring countries have announced closer collaboration on subsea energy infrastructure to “harness the full potential” of the Irish and Celtic seas as part of ongoing efforts to reset post-Brexit relations.

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25 February - Ofgem has announced that the energy price cap will rise by 6.4% to £1,849 for a typical household paying by Direct Debit from 1 April. The energy regulator said that rising wholesale costs and inflation were behind the latest price increase - the third consecutive price rise in the quarterly cap.

20 February - The energy regulator Ofgem has published plans to introduce zero standing charge tariffs. Ofgem has launched a consultation on how proposals to introduce an option under the price cap that will cover zero standing charge tariffs, where the fixed costs covered by standing charges would shift to unit rates, could work in practice.

13 February - Poorer households could cut their energy bills by a quarter if solar panels were installed on their rooftops, a report by the Resolution Foundation thinktank has found. The foundation added that a successful rollout of solar panels could lift 1.2 million people out of fuel poverty.

6 February - Sir Keir Starmer has unveiled plans for an expansion in nuclear power across England and Wales. The prime minister has pledged to "build baby build", as he announced plans to make it easier to construct mini nuclear power stations.

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13 January - The government has proposed a new smart data scheme that it says could give people greater control over their energy use and help save money on bills.

13 January - Prime Minister Sir Keir Starmer has unveiled plans for the development of the UK's artificial intelligence (AI) industry. As part of the plans the Prime Minister announced that a new ‘AI Energy Council’ would be established to identify and implement the solutions needed to power the increasing energy demands of AI.

10 January - The government has said that the UK has enough gas to meet the winter demand after a gas storage warning was issued by British Gas owner Centrica.

2 January - The UK’s electricity was the cleanest it has ever been in 2024, with wind and solar generation hitting all-time highs, according to analysis by Carbon Brief. In the past 12 months renewables including wind, solar and biomass from sources such as burning wood pellets and landfill gas generated a record 45% of the country’s power. However the report found that polluting fossil fuels, which are driving the climate emergency, still generated 29% of the UK’s electricity in 2024.

1 January - Ofgem's new price cap comes into force seeing unit prices rising for some customers until 31 March. With continued instability in the global energy market leading to rising wholesale prices, analysts predict an additional rise in the price cap in April which could be announced by the energy regulator towards the end of February.

Price cap explained.

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Published 01/01/2025
Edited 10/03/2025