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, all explained in simple terms.
This weeks developments are:
NESO Bets on EVs as the UK's Clearest Path to Net Zero
No 'Postcode Lottery': UK Scraps Zonal Pricing to Overhaul the Grid
UK & Czechia Partner on Next-Gen Nuclear Technology
The latest domestic electricity & gas switching numbers from Ofgem
Additional UK energy news that’s also on our radar
LATEST DEVELOPMENTS
Department for Energy Security and Net Zero
Image source: Ideogram / Meet George
The Spark: The UK government has rejected the controversial 'zonal pricing' model, opting instead to reform the current single national electricity market to lower costs and better manage the transition to renewable energy.
The details:
The government has officially decided to retain a single, GB-wide wholesale electricity market and will not introduce zonal pricing, which could have led to different prices in different regions.
The new approach, 'Reformed National Pricing', centres on a 'Strategic Spatial Energy Plan' (SSEP) to provide a master plan for where new energy infrastructure should be built to reduce grid congestion.
Key reforms will target transmission network charges (TNUoS) to make them more predictable, giving investors clearer signals on the best locations for new projects and aiming to lower costs passed on to consumers.
Grid management will be improved by making it easier for smaller assets, like batteries, to participate in the Balancing Mechanism, increasing flexibility and operational efficiency.
Why it matters: For months, the energy industry has held its breath over one big question: zonal or national pricing? The government has finally given a clear answer, and it's a huge win for consumer clarity. Rejecting 'zonal pricing' means we've dodged a 'postcode lottery' for wholesale energy costs, where your bill could be heavily influenced by where you live. Instead, the focus is on smarter, long-term planning. The 'Reformed National Pricing' package is essentially the government getting its house in order. By creating a master plan (the SSEP) and reforming complex network charges (TNUoS), the goal is to stop building expensive wind farms in places where the grid can't handle the power. This is crucial because the costs of that gridlock, called 'constraint costs', are ultimately paid by consumers. This decision provides much-needed stability for investors to build the clean energy we need, and it rightly keeps the focus on fixing the national system for everyone, not dividing it.
Current News
Image source: Ideogram / Meet George
The Spark: The National Energy System Operator’s (NESO) annual Future Energy Scenarios report identifies the electrification of transport as the most certain path to short-term decarbonisation.
The details:
To meet the UK's net zero by 2050 target, the report states a minimum of 31 million electric vehicles (EVs) will be needed on the road.
Smart charging is highlighted as critical for managing the increased electricity demand, with the potential to save consumers a collective £11 billion by 2050.
The report contrasts the high confidence in transport electrification with the greater challenges and uncertainties surrounding the decarbonisation of domestic heating.
Why it matters: This report from the system operator isn't just another headline about the benefits of electric cars; it's a crucial signal about how our relationship with energy is about to change. What NESO is really saying is that the flexibility from EVs is as important as the vehicles themselves. For consumers, this translates into a simple trade-off: charge your car whenever you want and you'll likely pay a premium, but allow your car to be charged smartly overnight—or even sell power back to the grid—and you could see significant savings on your energy bills. This highlights that the future of transport isn't just about cleaner cars, but about turning millions of driveways into mini, flexible power assets that help balance the entire grid.
Department for Energy Security and Net Zero
Image source: Ideogram / Meet George
The Spark: The UK is joining forces with Czechia in a bid to accelerate the development of next-generation small modular reactors and bolster long-term energy security.
The details:
The UK and Czechia have signed a new partnership to cooperate on the development and deployment of Small Modular Reactors (SMRs).
The collaboration will focus on sharing technical expertise, regulatory best practices, and developing supply chains and skills for the nuclear industry.
This agreement is part of the UK's broader strategy to increase its nuclear power capacity to 24GW by 2050, aiming to reduce reliance on fossil fuels.
The stated goal is to strengthen energy security for both nations, moving away from dependence on volatile global gas markets.
Why it matters: While new nuclear technology is a key part of the UK's long-term energy security plan, it's helpful to put this in context. SMRs are a promising but still developmental technology, years away from being deployed at scale. This means that while this partnership is a vital step for future energy independence, its direct impact on consumer bills won't be felt for at least a decade. It's best viewed as a long-term infrastructure investment, not a short-term cost-saver, with the real challenge being the transition from political agreement to physical infrastructure.
LATEST MARKET NUMBERS
📊 Market Snapshot
Number of Active Domestic Suppliers: 22
Total monthly domestic elec. switches: 277,094 - April 2025 (latest figures)
Total monthly domestic gas switches: 217,158 - April 2025 (latest 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
Expert panel to put science and tech at the heart of clean power
AI-powered VPP Kraken reaches 2GW managed domestic assets
English councils urged to install pavement gullies for home charging of electric cars
UK government to spend £63 million on EV infrastructure, hints EV subsidies
Government sets out reforms to create a fair, secure, affordable and efficient electricity system
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