​In a move that marks a potential shift in the UK's energy landscape, Ofgem has launched a wide ranging review of how households are charged for gas and electricity. The energy regulator aims to modernise the billing system to keep pace with the country's accelerating transition to renewable energy.

Central to this initiative is a focus on fairness and affordability for all households, particularly as an increasing share of electricity is generated from sustainable sources such as wind and solar. The review will assess alternative pricing models that better reflect the dynamics of a system dominated by renewables. With fixed costs for maintaining and upgrading energy networks continuing to rise, the regulator wants to ensure these costs do not fall disproportionately on those who are least able to pay.

The review comes as the government targets full decarbonisation of the power sector by 2030. With more homes installing heat pumps and solar panels, and electric vehicles becoming more mainstream, Ofgem believes that there is a need for pricing structures that encourage greener choices without penalising vulnerable consumers. Among the options that are being explored are time of use tariffs and reforms to standing charges, which could help households better manage costs while supporting the rollout of low carbon technologies.

Ofgem's proactive stance has been welcomed by the energy sector and consumer charities alike, who stress the importance of creating a billing system that works for everyone. The regulator will consult with consumer groups, energy companies, and other industry stakeholders as part of the review process.

By rethinking how energy costs are allocated, Ofgem's review could play a central role in ensuring the UK's clean energy transition is affordable, inclusive and resilient, further supporting the country's path towards a greener economy.