The linked iea data shows that the reduction is roughly 50/50 industrial and residential. So the deindustrialisation narrative is part of the story but improved efficiency at home is also a significant factor.
The decline in energy from 2003-present lines up nicely with the phase out of incandescent lights in favour of CFLs and of CFLs in favour of LEDs.
Lets say a house typically had 5 60W bulbs on for 8hrs a day, now replaced with an 8W bulb. That would be a 2 kWH reduction, which roughly corresponds to the drop shown in the data.
We may genuinely have the worst energy market in the developed world. It's going to get cheaper and reliable any day soon - George monbiot told me so it must be true.
Seems generally like a good thing? I know the biggest difference I can think of in my lifetime is just how much better insulated houses are. Not on a par with Scandinavia, but still massively improved from even the peak electricity consumption period in the charts of 2005. I wonder how much that contributes to the overall reduction in demand.
That's fine for residential customers. But if there isn't cheap, reliable excess capacity then that inhibits industrial growth. Low economic growth rates cause everyone to go without.
Which industries? If you're going to make that claim be specific. The UK has deindustrialised since the 70s which was nothing to do with electricity costs or availability. Any recent industries leaving are not covered by the stats here so would be pretty irrelevant, which means you're not talking about those, you're talking about something else for it to cover the period between the 70s and now.
We have expensive, potentially unreliable (if an interconnect fails we are completely fucked so certainly fragile), energy.
Energy is what allows modernity to function, we have made it so expensive that no one can make anything in Britain just in time for hard power and manufacturing to be really important again.
Chemicals, metals, pottery, glass,fertiliser etc are all basically impossible to do competitively in Britain.
Energy has only been expensive recently, and there has been zero issue with power supply beyond silly tabloid fear mongering. So between the 70s and lets say 10 years ago, the argument for expensive power really does not hold true.
Just an observation, but my first thought was how energy demand strongly correlates with economic growth and wondered if the article could be cast in that light. Might be fun to overlay that graph with UK gilt rates
Balancing auctions are pay-as-bid, the alternative is lights-off.
Capacity auctions are iirc pay as clear. Maybe day ahead as well.
One thing to consider as well is that without some external stimulus scheme all of the fossil/nuclear (even ignoring CFD schemes) would immediately go bust IIRC if the market was solely pay-as-bid because wind and solar are cheap but extremely spotty so the price would either be 0 or 1000, probably not the latter long enough to keep the gas plants we currently rely on in business => no more power on cold calm nights.
> From 1 January 1974, commercial users of electricity were limited to three specified consecutive days' consumption each week and prohibited from working longer hours on those days. Services deemed essential (e.g. hospitals, telephone switchboards, supermarkets and newspaper printing presses) were exempt. Television companies were required to cease broadcasting at 22:30 to conserve electricity [...] The Three-Day Week restrictions were lifted on 7 March 1974.
Year Avg consumer price in today's money
1975 13p/kWh
1985 15p/kWh
1995 n/a
2005 11p/kWh
2015 17p/kWh
2025 26p/kWh
We're currently paying a lot more than usual because:
1) we have to pay off operators for the billions of foreign investment they put into new wind and solar farms and grid storage batteries. If we didn't tempt them with a good RoI, they'd invest elsewhere, and we'd still be burning coal. The cost of this is going down year on year: https://en.wikipedia.org/wiki/Contracts_for_Difference_(UK_e...
2) we're paying for new transmission capacity and replacing worn out transmission route. The fact we don't already have it, which we could've had by charging more for electricity in the 2000s and building it out decades ago, is why today we face enormous curtailment costs today, as we can't get all this wind power from where it's generated to where it's consumed: https://www.telegraph.co.uk/business/2026/10/05/the-bottlene...
3) our market arrangement is based on everyone bidding to supply power, and we pay everyone who generates the same rate as the highest necessary bidder. Thus the moment that there isn't enough wind power, or there is but it can't get to the region it's needed (see point 2), in come the gas turbines and given that Russia's trying to destroy Ukraine, gas is astronomically expensive. The sooner we solve our bottlenecks and decommission all the gas turbines, the better.
The linked iea data shows that the reduction is roughly 50/50 industrial and residential. So the deindustrialisation narrative is part of the story but improved efficiency at home is also a significant factor.
The decline in energy from 2003-present lines up nicely with the phase out of incandescent lights in favour of CFLs and of CFLs in favour of LEDs.
Lets say a house typically had 5 60W bulbs on for 8hrs a day, now replaced with an 8W bulb. That would be a 2 kWH reduction, which roughly corresponds to the drop shown in the data.
Power management (ACPI) in desktop computers also arrived in the late 1990s. Power saving sleep modes have a big impact.
Computer fleets across a country do not upgrade immediately so the lag may contribute.
And ACPI was just one energy saving initiative of that era.
We may genuinely have the worst energy market in the developed world. It's going to get cheaper and reliable any day soon - George monbiot told me so it must be true.
Seems generally like a good thing? I know the biggest difference I can think of in my lifetime is just how much better insulated houses are. Not on a par with Scandinavia, but still massively improved from even the peak electricity consumption period in the charts of 2005. I wonder how much that contributes to the overall reduction in demand.
Only 9% of the UK is electric only heating [1], so I suspect heating is not a large driver here.
[1] https://www.ons.gov.uk/peoplepopulationandcommunity/housing/...
It can be good or bad depending on what's driving the change. Improving efficiency, assuming it comes at a reasonable cost, is generally good.
If people are just going without, then that's generally bad.
They arent going without. Blackouts/brownouts are exceptionally rare in the UK.
That's fine for residential customers. But if there isn't cheap, reliable excess capacity then that inhibits industrial growth. Low economic growth rates cause everyone to go without.
No it's a catastrophic failure of planning and institutional nerve.
Explain. Nobodys going without power.
UK has some of the highest costs of power in the world. There's a lot of demand destruction there, a lot of industries left. due to high costs.
Which industries? If you're going to make that claim be specific. The UK has deindustrialised since the 70s which was nothing to do with electricity costs or availability. Any recent industries leaving are not covered by the stats here so would be pretty irrelevant, which means you're not talking about those, you're talking about something else for it to cover the period between the 70s and now.
What were the prices like relative to the rest of the world 20-40 years ago when most of that industry was offshored?
We have expensive, potentially unreliable (if an interconnect fails we are completely fucked so certainly fragile), energy.
Energy is what allows modernity to function, we have made it so expensive that no one can make anything in Britain just in time for hard power and manufacturing to be really important again.
Chemicals, metals, pottery, glass,fertiliser etc are all basically impossible to do competitively in Britain.
Energy has only been expensive recently, and there has been zero issue with power supply beyond silly tabloid fear mongering. So between the 70s and lets say 10 years ago, the argument for expensive power really does not hold true.
Just an observation, but my first thought was how energy demand strongly correlates with economic growth and wondered if the article could be cast in that light. Might be fun to overlay that graph with UK gilt rates
edit: helpful robot boyfriend plotted it https://i.imgur.com/Hp199vV.png
That link is particularly helpful for UK users, "Content not available in your region".
Isn’t most of the housing in the UK from the 1970’s too?
It’s just plain expensive thanks to the shitty price everything by most expensive source method. Of course people minimise use
Currently paying 0.33 usd a unit.
Balancing auctions are pay-as-bid, the alternative is lights-off.
Capacity auctions are iirc pay as clear. Maybe day ahead as well.
One thing to consider as well is that without some external stimulus scheme all of the fossil/nuclear (even ignoring CFD schemes) would immediately go bust IIRC if the market was solely pay-as-bid because wind and solar are cheap but extremely spotty so the price would either be 0 or 1000, probably not the latter long enough to keep the gas plants we currently rely on in business => no more power on cold calm nights.
I wonder if they're paying less than the 70s?
In the '70s you weren't guaranteed to get the electricity you paid for:
https://en.wikipedia.org/wiki/Three-Day_Week
> From 1 January 1974, commercial users of electricity were limited to three specified consecutive days' consumption each week and prohibited from working longer hours on those days. Services deemed essential (e.g. hospitals, telephone switchboards, supermarkets and newspaper printing presses) were exempt. Television companies were required to cease broadcasting at 22:30 to conserve electricity [...] The Three-Day Week restrictions were lifted on 7 March 1974.
But nonetheless: https://www.gov.uk/government/statistical-data-sets/historic...
We're currently paying a lot more than usual because:1) we have to pay off operators for the billions of foreign investment they put into new wind and solar farms and grid storage batteries. If we didn't tempt them with a good RoI, they'd invest elsewhere, and we'd still be burning coal. The cost of this is going down year on year: https://en.wikipedia.org/wiki/Contracts_for_Difference_(UK_e...
2) we're paying for new transmission capacity and replacing worn out transmission route. The fact we don't already have it, which we could've had by charging more for electricity in the 2000s and building it out decades ago, is why today we face enormous curtailment costs today, as we can't get all this wind power from where it's generated to where it's consumed: https://www.telegraph.co.uk/business/2026/10/05/the-bottlene...
3) our market arrangement is based on everyone bidding to supply power, and we pay everyone who generates the same rate as the highest necessary bidder. Thus the moment that there isn't enough wind power, or there is but it can't get to the region it's needed (see point 2), in come the gas turbines and given that Russia's trying to destroy Ukraine, gas is astronomically expensive. The sooner we solve our bottlenecks and decommission all the gas turbines, the better.