London, 3 September 2025 – Offshore Energies UK (OEUK) has warned that urgent government reform is required to safeguard the North Sea energy industry, protect jobs and strengthen the UK’s energy security.
The group’s 2025 Economic Report outlines how pragmatic policy changes could revitalise offshore production, supporting the UK’s Net Zero and Clean Power 2030 targets while ensuring households and businesses are less exposed to volatile global energy markets.
UK Reliance on Imports Increasing
OEUK estimates that imports already meet 44% of national energy needs. This dependency is pushing up costs, increasing emissions and threatening thousands of skilled jobs across the supply chain.
“The North Sea has been the powerhouse of the UK’s prosperity,” said OEUK chief executive David Whitehouse. “With the right fiscal and economic policies, it can continue to power us into a new era of success. Policymakers have the power and the responsibility to make this happen.”
Key findings in the report include:
- The Energy Profits Levy (EPL) has failed to deliver the tax revenues expected.
- Around 1,000 oil and gas jobs are being lost each month.
- Without reform, persistently high energy imports will continue to drive up costs.
- Stable pricing and investor confidence are vital to unlocking projects like carbon capture and storage.
Whitehouse said: “With sensible reform, we could produce half of the oil and gas we need right here at home as we scale up renewables.”
Why It Matters for UK Households
While OEUK’s focus is on industrial policy, the implications are clear for consumers. Higher reliance on imports has already contributed to rising household bills. From October, Ofgem’s updated price cap will see a typical dual-fuel home paying £1,755 a year – £35 more than today’s level.
Energy experts warn that without decisive action, households will continue to face unstable pricing and above-average costs compared with Europe.
Greg Marsh, an energy adviser, explained:
“Industrial policy and household bills are linked. The more the UK depends on expensive imports, the harder it is to deliver affordable energy for families. The best step households can take now is to be proactive – compare their tariff options and switch where savings are available.”
How Households Can Cut Costs
Consumer groups stress that households are not powerless, even while government reforms take shape. Practical steps include:
- Using energy comparison tools to check whether current tariffs are competitive.
- Reviewing fixed tariffs, many of which are priced below the October price cap.
- Exploring different suppliers to find cheaper energy tariffs that match their usage.
- Using an energy bill calculator to see exactly how the October changes will affect their household budget.
Millions of families remain on standard variable tariffs, which are rarely the cheapest option. Switching to a fixed deal or dual-fuel tariff could save hundreds of pounds over the coming winter.
Outlook
OEUK says that replacing the Energy Profits Levy with a fairer system could unlock more than two billion barrels of oil and gas, worth £150 billion to the UK economy. But until reforms are made, households will need to focus on what they can control.
Regularly comparing tariffs and switching when cheaper options are available remains the simplest way to keep bills in check – and ensure UK consumers are less exposed to global energy volatility.
