6.5 Million Homes at Risk of Fuel Poverty Amid Rising Energy Costs.6.5 Million Homes at Risk of Fuel Poverty Amid Rising Energy Costs. Millions of UK households are being urged to prepare for a major energy crisis this winter.
The National Energy System Operator (NESO) has issued an early warning that December 2025 and January 2026 could bring severe energy supply pressure, with possible localised blackouts and rising costs. Officials are calling these the most “critical months” in recent memory for the nation’s energy grid.
“This winter will not be without challenges,” said Paul Gallagher, Head of System Operations at NESO. “While we expect to maintain security of supply, households should be aware of potential short-term demand reduction events.”
Overview: 6.5 Million Homes at Risk of Fuel Poverty Amid Rising Energy Costs
| Particulars | Details |
| Scheme Name | National Energy Supply Preparedness Plan |
| Department | Department for Energy Security and Net Zero (DESNZ) |
| Country | United Kingdom |
| Update | NESO issues national energy crisis warning for Winter 2025–26 |
| Important Dates | Peak pressure months: December 2025 and January 2026 |
| Beneficiaries | All UK households, especially vulnerable and low-income families |
| Official Website | www.gov.uk |
Why the Warning Matters
The National Energy System Operator (NESO) has highlighted that the UK grid could face “tight margins” this winter, times when energy demand nearly matches available supply. These so-called “tight days” are forecast mainly in early December and mid-January, when cold temperatures push up heating and electricity use.
Older regions of the grid, or those with high population density, are particularly vulnerable. During these periods, NESO may issue demand reduction requests, asking households to temporarily reduce electricity use during peak evening hours. This can help prevent blackouts and maintain overall system balance.
The Rising Cost Burden
Fuel poverty groups warn that as many as 6.5 million households could fall into fuel poverty this winter due to climbing bills. Average household energy costs are expected to hit £2,200 per year, with prepayment meter users spending up to 33% of their income just on energy.
“This is not just a seasonal inconvenience,” said Dr. Fiona Chambers, an energy economist at the University of Oxford. “For millions, it’s a financial and health crisis.”
High energy costs don’t just hit homes — they ripple through the economy. The Bank of England has warned that energy remains one of the biggest contributors to inflation. Small businesses, especially in hospitality and manufacturing, face immense pressure. Many are already paying energy bills that rival their rent, raising fears of closures and job losses.
Why the Grid Is Struggling
The UK’s heavy dependence on natural gas is a major vulnerability. Last winter, gas accounted for over 40% of the nation’s electricity generation. Because the UK has limited storage capacity compared to other European countries, it is more exposed to price shocks and supply disruptions.
Periods of low wind generation during cold snaps also create strain, forcing higher reliance on gas imports. NESO’s winter forecast considers several scenarios where gas supply or wind output may fall short, increasing the need for demand control.
According to Dr. Martin Evans from the Energy and Climate Intelligence Unit, “We’re facing the intersection of climate, infrastructure, and market volatility. That combination makes the system fragile.”
Europe’s Shared Energy Strain
This isn’t just a UK issue. Across Europe, countries such as Germany and France are also preparing for tight supply conditions. While continental gas storage is better than in 2022, any prolonged cold spell could stretch resources thin.
Analysts at Rystad Energy say global LNG (liquefied natural gas) availability remains tight, meaning competition for supplies will intensify if temperatures plunge.
Government and Industry Action
The Department for Energy Security and Net Zero (DESNZ) has announced several steps to strengthen supply and protect consumers. These include:
- Capacity agreements with heavy industry to limit usage during peak periods.
- Expanded demand flexibility services for homes and businesses.
- Financial support schemes for vulnerable households.
- Energy awareness campaigns encouraging insulation and energy audits.
A DESNZ spokesperson stated:
“We are working closely with National Grid to ensure energy security and protect consumers. Our priority is keeping homes warm and the lights on.”
Support programs like the Warm Home Discount and Winter Fuel Payment have been extended, while Ofgem will soon launch an information campaign on home efficiency.
How Households Can Prepare
To stay safe and manage costs, NESO and consumer groups recommend the following actions:
- Service heating systems early to avoid emergency breakdowns.
- Seal draughts and improve insulation to reduce heat loss.
- Shift high-energy tasks (like laundry or cooking) away from evening peaks.
- Maintain a credit buffer on prepayment meters.
- Sign up for official alerts from NESO and Ofgem.
- Check eligibility for government support schemes.
Caroline Turner from National Energy Action stressed, “Small steps can make a real difference when energy systems are strained. But systemic support remains essential.”
Emergency Preparedness
In case of temporary power cuts or supply interruptions, officials suggest keeping a simple home energy emergency kit, including:
- Battery-powered or hand-crank torches
- Fully charged power banks
- Warm blankets and layered clothing
- A safe backup heat source
- A list of local support contacts and helplines
NESO and local distributors will issue SMS and email alerts during critical events. Vulnerable or medically dependent customers can also register for priority assistance.
Final Thoughts
The coming winter could test the UK’s energy resilience like never before. With rising bills, fuel poverty, and fragile supply chains, preparation and awareness are crucial. Every household can play a part, through energy-saving habits, early maintenance, and staying informed. But lasting stability will depend on long-term investments in cleaner, more secure energy systems that protect both people and the planet.
FAQs for 6.5 Million Homes at Risk of Fuel Poverty Amid Rising Energy Costs
Why is NESO warning about an energy crisis this winter?
Demand may exceed supply in December 2025 and January 2026, raising risks of blackouts and price hikes.
Which households are most at risk?
Low-income families, older adults, and prepayment meter users, who may spend up to a third of their income on energy.
What can I do to prepare?
Service your boiler, improve insulation, and shift usage away from evening peaks. Also, check for energy support schemes.
Will there be government help?
Yes. Programs like the Warm Home Discount and Winter Fuel Payment will continue for eligible households.
How will I know if my area faces power cuts?
NESO and local operators will send SMS or email alerts; vulnerable customers can register for priority updates.
