GB energy costs could halve by 2050

Britain’s energy costs could halve by 2050 despite higher demand, according to the system operator.

NESO’s analysis of the latest Future Energy Scenarios 2025 shows that energy costs could fall from about 10% of GDP in 2025 to around 5-6% by 2050.

In all scenarios, costs shift from imported fossil fuels to domestic investment in clean electricity, networks, and efficient electric heating.

The modelling also shows that Britain would be less affected by fossil-fuel price changes under a decarbonised energy system.

The report highlights that all cost comparisons are estimates and depend on technology costs, consumer behaviour, and policy assumptions.

Claire Dykta, NESO’s Director of Strategy & Policy, said: “Projecting future energy costs is very difficult, but our analysis suggests that Britain could halve energy spending by 2050. We would also be less affected by energy price changes under a decarbonised system, reducing the economic impact of price spikes like those in 2022. Our pathways are designed to help with strategic planning and policy development, and we see potential for costs to be even lower than our models suggest.”