Citizens Advice response to DESNZ’s Reformed National Pricing delivery plan

Citizens Advice response to DESNZ’s Reformed National Pricing delivery plan 165 KB

Citizens Advice is responding to DESNZ’s recent consultation on Reformed National Pricing. We recognise that this response is submitted after the deadline for the consultation. The reforms under consideration by DESNZ are important and we want to ensure that the consumer view is heard.

The case for change set out below is consumer-led. Balancing costs reached £2.7 billion in 2024/25, of which £1.9 billion was constraint costs. Without reform, they are projected to reach £4–8 billion per year by 2030. This scenario would add £60–140 per household per year to bills at peak, falling disproportionately on lower-income households as a share of disposable income.

Greater strategic planning through the Strategic Spatial Energy Plan (SSEP) is necessary. DESNZ's own indicative analysis suggests RNP investment-side reforms — ensuring investment happens in the right locations and at the right times — could yield £10–20 billion (present value) in benefits over 2030–2050. This is equivalent to up to £20–40 per typical dual-fuel household per year by 2040 (RNP Delivery Plan, Chapter 1). Additional near-term measures targeted at constraint costs are estimated by DESNZ at up to £1 billion of savings in 2030. Accelerating three key transmission projects could add another £4 billion. This shows the importance of progressing this work at pace and with ambition.

Constraint costs are expected to rise because of a market design that systematically socialises risk onto consumers.