Energy system cost allocation and recovery review

Overview

We are seeking views on whether there are fairer and more efficient ways of how we allocate and can recover energy system costs. 

As we transition to a cleaner and more secure energy system, the make-up of energy system costs are changing.  We need to be able to share costs for a smarter and more efficient energy system. New approaches could offer better protections for consumers, while supporting decarbonisation and growth. 

Who should respond

We would like views from people and organisations within the energy sector.

We also welcome responses from: 

• domestic consumers
• non-domestic consumers
• consumer groups
• charities
• academia

Background

Great Britain (England, Scotland and Wales) is transitioning to a cleaner, more secure and resilient energy system. As we reduce reliance on fossil fuels and invest to upgrade and maintain our infrastructure, the structure of energy system costs will change.

At the same time, new technologies and uses are changing how and when consumers use energy. These changes raise questions about how the energy system should be paid for by consumers.

This review looks at how we could recover costs from consumers in ways that:

• are fairer and more efficient
• support net zero
• support economic growth

Before you start

Read the Energy system cost allocation and recovery review document. You'll find it in the 'Related' section on this page.

Please refer to this document when giving us your views.

Why your views matter

When it comes to recovering energy system costs from consumers, there are some fundamental choices that we can make about how we share costs. Navigating these choices is complex, as each approach involves trade-offs that we will need to consider.

We want to hear from you on what is most important for us to consider. What you think would be the most efficient and fairest type of approach, and your preferences among the trade-offs involved.

Next steps

The call for input will be open for responses until 24 September 2025. During this consultation period we welcome direct engagement and discussion with interested parties. After the call for input has closed, we will review all responses, which will inform any further policy development. 

We intend to publish a consultation on more specific policy options by the end of 2025. However, the timing of future steps will be influenced by the feedback we receive to this call for input.