What mattered this week

UK just bet BIG on offshore wind. But does cheaper power mean cheaper bills?

What happened: This week, Miliband claims his massive wind auction will lower bills.
Behind the headline: Wind does reduce costs: ECIU found it slashed price wholesale prices by 1/3 in 2025.
But? Retail electricity costs includes other charges, including grid upgrades, and paying wind farms to turn off when the grid can’t cope.
Why it matters: UK industry doesn’t need high-minded promises - it needs a grid that effectively takes cheap wind power to where it’s needed. Can we do that?
Read more: Carbon Brief 

Industry bill are high because UK charges carbon taxes - and importers don’t pay

What happened: Opponents been shouting loudly that “net zero raises UK costs”. Bluntly, there’s truth there - our steel is 25% more expensive than in the EU.
Behind the headline: It’s not renewables per se, but taxing carbon. Which is a good thing, but we only tax… ourselves.
Why it matters: UK industry can’t compete with countries that don’t charge for carbon.
Read more: Eigen Values claims Miliband’s gaslighting the nation on costs - and he has a bit of a point.

How do we close the loophole? CBAM. EU did it, but the UK won’t start until 2027

What happened: EU is rolling out a Carbon Border Adjustment Mechanism (CBAM). Imports made with carbon pay a tax.
Translation: CBAM levels the playing field between carbon-taxed domestic businesses and cheaper, higher-carbon imports.
Why it matters: UK will do this. Soon. So don’t think your cheap, dirty imports will last forever…
Read more: UK Government’s CBAM proposals

The Scoreboard

How big is Miliband’s offshore wind bet?

8GW. Biggest ever round of contracts. These projects alone could provide 12% of the UK’s electricity.

One thing to worry about

What’s happening to UK industry? Bad things.

This week, Ed Conway made this incredibly important film for Sky News on the grim state of UK chemicals.

Not long ago, a global leader. Now on life support.

One thing to be optimistic about

The countries we import from are reducing their carbon intensity.

Coal use in India and China actually fell in 2025 (The Guardian).

If you’ve got more time…

Zeke Hausfather’s annual State of the Climate report reminds us why moving to renewables matters.

Stats from 2025:

• Record greenhouse gases in the atmosphere

• Third hottest year on record, second warmest over land

• Record losses from glaciers and ice sheets

• Sea levels reached record high

Importantly: climate models predicted this. Almost exactly.

The Bottom Line

Energy policy is industrial policy. Caveat emptor.