UK electricity will cost more in 2030 than after invasion of Ukraine, warns Centrica

Lights on in a house near an electricity pylon © BloombergUK electricity will cost more in 2030 than after invasion of Ukraine, warns Centrica on x (opens in a new window)UK electricity will cost more in 2030 than after invasion of Ukraine, warns Centrica on facebook (opens in a new window)UK electricity will cost more in 2030 than after invasion of Ukraine, warns Centrica on linkedin (opens in a new window)UK electricity will cost more in 2030 than after invasion of Ukraine, warns Centrica on whatsapp (opens in a new window) Save UK electricity will cost more in 2030 than after invasion of Ukraine, warns Centrica on x (opens in a new window)UK electricity will cost more in 2030 than after invasion of Ukraine, warns Centrica on facebook (opens in a new window)UK electricity will cost more in 2030 than after invasion of Ukraine, warns Centrica on linkedin (opens in a new window)UK electricity will cost more in 2030 than after invasion of Ukraine, warns Centrica on whatsapp (opens in a new window) Save Rachel Millard in LondonPublishedFebruary 10 2026Jump to comments sectionPrint this pageStay informed with free updatesSimply sign up to the UK energy myFT Digest -- delivered directly to your inbox.The chief executive of Centrica has warned that British electricity prices in 2030 will be higher than they were following Russia’s full-scale invasion of Ukraine, as the need for more investment drives up costs in the energy system. Chris O’Shea told a conference in London on Tuesday that Britain’s electricity system had suffered years of under-investment and was trying to catch up at a time when the cost of new equipment had soared. “We’ve underinvested in the system for many years, and whether it’s the cost of building a new gas-fired power station or a new wind farm, the costs have gone up,” he told the International Energy Week event hosted by the Energy Institute. “Our projections show that the UK energy system will be one where, by 2030, the electricity price will be higher than it was at the peak of the Russian invasion of Ukraine,” the head of the UK energy provider said during a panel event. “One-third of the cost of that electricity will be wholesale costs and the other two-thirds will be system costs.”Wholesale and retail electricity costs rose sharply following the full-scale invasion of Ukraine due to a surge in the price of gas — used to generate almost a third of Britain’s electricity — as European countries were forced to diversify supply from Russia. The situation was worsened due to outages at France’s nuclear power stations, which export power to Britain and other parts of Europe. The UK government eventually had to step in in early 2023, offering support for all households to pay their electricity bills. Prices have since eased though they remain higher than pre-crisis averages. The prospect of years of price rises is likely to cause alarm among ministers who have pledged to bring down electricity bills by 2030 following widespread concern about the pressure they put on both households and businesses.The owners of Britain’s gas and electricity infrastructure are due to invest tens of billions of pounds over the next several years to reinforce networks and build new electricity cables and pylons to transport electricity from wind farms around Scotland. FTSE 100-listed Centrica, which owns household supplier British Gas, is investing in areas such as nuclear power and long-term gas import deals in an effort to boost the UK’s energy security.“We have . . . an older system and the rate of investment has probably not kept pace with where it should be,” added O’Shea. “Which is why we’ve got these huge packages from companies to upgrade the system, and that’s pushing up costs.”Reuse this content (opens in new window) CommentsJump to comments sectionPromoted Content Follow the topics in this article UK energy Add to myFT UK economy Add to myFT Energy crisis Add to myFT Utilities Add to myFT Centrica PLC Add to myFT CommentsThe chief executive of Centrica has warned that British electricity prices in 2030 will be higher than they were following Russia’s full-scale invasion of Ukraine, as the need for more investment drives up costs in the energy system. Chris O’Shea told a conference in London on Tuesday that Britain’s electricity system had suffered years of under-investment and was trying to catch up at a time when the cost of new equipment had soared. “We’ve underinvested in the system for many years, and whether it’s the cost of building a new gas-fired power station or a new wind farm, the costs have gone up,” he told the International Energy Week event hosted by the Energy Institute. “Our projections show that the UK energy system will be one where, by 2030, the electricity price will be higher than it was at the peak of the Russian invasion of Ukraine,” the head of the UK energy provider said during a panel event. “One-third of the cost of that electricity will be wholesale costs and the other two-thirds will be system costs.”Wholesale and retail electricity costs rose sharply following the full-scale invasion of Ukraine due to a surge in the price of gas — used to generate almost a third of Britain’s electricity — as European countries were forced to diversify supply from Russia. The situation was worsened due to outages at France’s nuclear power stations, which export power to Britain and other parts of Europe. The UK government eventually had to step in in early 2023, offering support for all households to pay their electricity bills. Prices have since eased though they remain higher than pre-crisis averages. The prospect of years of price rises is likely to cause alarm among ministers who have pledged to bring down electricity bills by 2030 following widespread concern about the pressure they put on both households and businesses.The owners of Britain’s gas and electricity infrastructure are due to invest tens of billions of pounds over the next several years to reinforce networks and build new electricity cables and pylons to transport electricity from wind farms around Scotland. FTSE 100-listed Centrica, which owns household supplier British Gas, is investing in areas such as nuclear power and long-term gas import deals in an effort to boost the UK’s energy security.“We have . . . an older system and the rate of investment has probably not kept pace with where it should be,” added O’Shea. “Which is why we’ve got these huge packages from companies to upgrade the system, and that’s pushing up costs.”