Renegotiating British Energy Policy: An international comparison of energy costs and policies
Mike and Douglas McWilliams, August 2026
This report provides a comprehensive international comparison of energy costs and generation systems across 11 major manufacturing nations – assessing how the UK’s energy pricing affects industrial competitiveness.
It finds that UK manufacturers paid £16.6 billion for energy in 2024, of which £11.7 billion was electricity and £3.3 billion gas. As the report states, “The prices paid by manufacturers for both electricity and gas in the UK are significantly higher than in all the comparator countries.”
Electricity prices show the most striking divergence. UK industrial electricity costs are six times higher than China, four times higher than the US, and double those in France. Even compared with high‑cost European peers, UK electricity is 70–75 per cent more expensive than Germany and Italy.
The report compares energy systems across countries including metrics such as generation technology trends, fossil‑fuel displacement, renewable penetration, and nationally determined contributions under the Paris Agreement.
A central calculation estimates what UK manufacturers would pay if charged foreign energy prices. At US prices, costs would fall from £16.6 bn to £5.2 bn, a 69 per cent saving; at Chinese prices, to £6.4 bn, a 61 per cent saving. Even Germany, the highest‑cost comparator, would reduce UK industry’s bill by 32 per cent.
As the report notes, an addition to costs on this scale is bound to have had an impact on the UK’s deindustrialisation. The authors conclude that high UK energy prices impose a major competitive disadvantage, which has likely contributed significantly to the country’s long‑term industrial decline.
Media Coverage
The Times: ‘Pursuit of net zero has failed to cut British energy bills‘
The Telegraph: ‘Household energy bills to soar by £260 on net zero costs‘