A quick note from me (Josh):
Welcome to The George Briefing. Each week, my co-founder Lu and I use our tech-focused lens to scan the UK energy market. Our goal is to cut through the noise and deliver the key developments that actually matter to your wallet and the industry, all explained in simple terms.
This weeks developments are:
Decoding Sizewell C: The New 'Nuclear Tax' Coming to Your Energy Bill
Course Correction: UK Rewrites Wind Farm Rules to Avoid Another Green Energy Flop
Beyond the Buzzwords: What the UK's 'Smart Grid' Plan Actually Means for You
The latest record high domestic debt numbers from Ofgem
Additional UK energy news from last week that’s also on our radar
LATEST DEVELOPMENTS
Department for Energy Security and Net Zero
Image source: Ideogram / Meet George
The Spark: The government has finalised the controversial funding model for the Sizewell C nuclear plant, which will see costs added to consumer bills long before it generates any power.
The details:
The Sizewell C nuclear project will be financed using a Regulated Asset Base (RAB) model.
Ofgem, the UK's independent energy regulator, will oversee the RAB structure.
The Low Carbon Contracts Company will be responsible for collecting the revenue from electricity suppliers.
The government has published the detailed special conditions for the licence and the project's specification.
Why it matters: The key question here is: what does 'Regulated Asset Base' actually mean for your bills? In simple terms, it's a fundamental shift in who pays for the risk of building a new nuclear power station. Unlike previous projects where developers funded construction and only got paid once the plant generated electricity, the RAB model allows Sizewell C to charge a small, regulated amount to every consumer's energy bill during the decade-long construction phase. The government's logic is that by reducing the financial risk for investors, it can attract funding at a much lower cost, which should ultimately make the entire project cheaper than it otherwise would be. The real-world impact is a trade-off: consumers will start paying for Sizewell C years before it's switched on, in exchange for the promise of a lower overall cost for this critical piece of long-term energy infrastructure.
Department for Energy Security and Net Zero
Image source: Ideogram / Meet George
The Spark: The government is rewriting the rulebook for its flagship renewables auction, aiming to get more offshore wind farms in the running and avoid another year of stalled progress.
The details:
The government is consulting on changing the eligibility rules for fixed-bottom offshore wind projects for the next Contracts for Difference (CfD) auction, Allocation Round 7 (AR7).
Currently, projects need full planning consent to apply; the proposal would allow projects to qualify with just a 'valid application' for consent submitted.
The aim is to increase the number of eligible projects, boosting competition and helping to secure more clean energy capacity to meet the UK's 2030 targets.
A key safeguard is proposed: any project that wins a contract but fails to secure its final planning permission by a specified 'longstop date' will have its contract offer withdrawn.
Why it matters: What's the hidden context here? This seemingly technical tweak is a direct response to recent auction failures. Allocation Round 5 in 2023 famously secured zero new offshore wind projects, a major setback for the UK's renewable goals. By relaxing the entry requirements for the next round, the government is trying to widen the pool of applicants. In simple terms, this is about creating more competition. More projects bidding for government contracts should, in theory, drive down the guaranteed price for the electricity they produce. For consumers, a lower guaranteed price for developers ultimately translates to a lower long-term cost being added to energy bills to support new renewable projects. This administrative change is a crucial lever in the government's attempt to get its offshore wind ambitions back on track and make the energy transition more affordable.
Department for Energy Security and Net Zero
Image source: Ideogram / Meet George
The Spark: The government has released its official roadmap for building a smarter, more flexible electricity grid designed to handle the shift to renewables and lower consumer bills.
The details:
The 'Clean flexibility roadmap' sets out the government's vision for a cleaner electricity system that uses infrastructure more efficiently.
Its primary goal is to better integrate renewable power sources, reducing reliance on volatile fossil fuel markets and helping to meet 2030 clean power targets.
Developed with Ofgem and the National Energy System Operator (NESO), the plan commits specific organisations to time-bound actions.
An enduring governance framework will be established to track progress and hold organisations accountable for delivering on the roadmap's goals.
Why it matters: This roadmap is the government's answer to a fundamental challenge of the green transition: how to manage an electricity grid powered by intermittent renewables like wind and solar. 'Flexibility' is industry jargon for making the grid smarter, not just bigger. It means creating ways to shift electricity demand to times when clean power is plentiful and cheap – think smart-charging your EV overnight or large-scale batteries storing solar power for the evening peak. Getting this right is crucial because the alternative is either building more expensive backup power plants or paying wind farms to switch off when it's too windy, a cost that ultimately lands on consumer bills. This plan is less a single headline-grabbing announcement and more a technical blueprint for making our energy system more efficient and, hopefully, more affordable.
LATEST MARKET NUMBERS
📊 Market Snapshot
Number of Active Domestic Suppliers: 22
Number of accounts in arrears where there is no arrangement to repay the debt: 1,064,138 (electricity), 864,918 (gas) - June 2025 (latest figures)
Average debt level where there is no arrangement to repay the debt (arrears): £1,712 (electricity), £1,482 (gas) - June 2025 (latest figures)
These are record high figures!
Average debt level where there is an arrangement to repay the debt: £740 (electricity), £608 (gas) - June 2025 (latest figures)
These are also record high figures!
Total Customer Energy Debt & Arrears: £4.15B - Q1 2025 (latest figures)
Total financial value of domestic customer debt and arrears (existing for more than 91 days)
📊 Ofgem Snapshot
Ofgem Domestic Price Cap (July to September 2025):
Elec. Unit Rate: 25.73 pence p/kWh
Elec. Standing Charge: 51.37 p/day
Gas Unit Rate: 6.33 pence p/kWh
Gas Standing Charge: 29.82 p/day
(Figures are rounded to two decimal places and based on the England, Scotland and Wales average for people who pay by Direct Debit. These include 5% VAT.)
ALSO ON OUR RADAR
📰/📊 News & numbers also worth reading
All Aboard the Carbon Tax: UK Shipping to Pay for Its Pollution
Balancing the Bills: The Difficult Debate Over 'Social Tariffs' Begins
Not All Hydrogen is Green: Unpacking the UK's 'Twin-Track' Strategy
Get Paid to Use Less Energy? The Gov Wants to Know How to Sell the Idea
Open Banking for Energy: Your Smart Meter Data Could Soon Unlock Savings
A 'Made in Britain' Bonus for New Wind Farms
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