Energy system cost allocation and recovery review

Help shape how we can share smarter and more efficient energy system costs to protect you and support a cleaner, stronger economy.

Details of outcome  

We are considering the full range of views and evidence submitted. This includes the impact of different approaches on different consumer groups.

Our intention is to consult on policy options in spring 2026.  

We received 330 responses. 75% of these were from domestic consumers.  

Views differed among those who responded, on a preferred method for allocating and recovering energy system costs. However, there were several themes. These include:  

• affordability  
• fairness  
• protecting customers in vulnerable situations  
• calls for greater government-led targeted support  
• data-informed decisions about recovery measures  

Read more details about the update to the cost allocation and recovery review in our online consultation.  

Original call for input 

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

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