The second half of 2025 brought continued upward pressure on electricity prices across major markets, though the drivers and magnitude varied considerably by region. In the United States, utilities requested record rate increases totalling substantial amounts, making electricity costs a prominent political issue. The increases stemmed from multiple factors rather than any single cause, with different states experiencing vastly different levels of price growth. California stood out as an extreme outlier with the steepest increases, while other states saw more moderate but still significant rises.
In the United Kingdom, household energy costs edged higher as the regulatory price cap adjusted upward despite earlier forecasts suggesting potential decreases. Government policy costs, including funding for major nuclear infrastructure projects, contributed significantly to the increase alongside rising network operating expenses. Standing charges that cover fixed network costs also climbed, adding to the burden on consumers.
Wholesale energy costs remained elevated and volatile throughout the half, keeping retail prices high even as some temporary fluctuations occurred. Residential customers bore disproportionate increases compared to commercial and industrial users. The persistent gap between pre-crisis pricing and current levels continued frustrating households struggling with cost-of-living pressures.
