This is a plain reading of Reform UK's stated energy policy. Every figure and quotation below is drawn from the party's own statements or letters. Nothing has been added except the numbers placed next to each other.
On the fiscal saving
Reform UK states that ending Contracts for Difference signed under the AR7 auction round would save between £45 billion and £225 billion. The party has published both figures without showing the calculation behind either one.
The distance between the two figures amounts to £180 billion, a gap that remains unexplained in either published account. Richard Tice has described the contracts as "politically and commercially unsafe" for the companies holding them, and has written to developers stating his intention to "strike down all contracts signed under AR7."
On the market mechanism
Nigel Farage has stated that issuing more North Sea oil and gas licences would bring bills down. Oil and gas are sold on a global market, and the price a barrel fetches is set by that market and not by where it was extracted.
The Contracts for Difference Supplier Obligation sits inside the wholesale portion of a typical bill, the same line Reform proposes to lower through drilling. Both proposals aim at the same £810 wholesale line from opposite directions.
On the household position
The typical dual-fuel household bill for Q4 2026 stands at £1,723, of which £103 is classified as policy cost under Ofgem's own breakdown. Reform states that repealing five specific levies inside that line would remove about £80 a year, with the Warm Home Discount continuing for existing recipients under a different funding arrangement.
Tice quoted a saving of £300 to £400 per household in February 2025 for what appeared to describe the same policy change. The figure now published is £80, a smaller amount than either end of that earlier range.
The Warm Home Discount pays eligible households £150 towards winter bills under the current arrangement, and Reform states that existing recipients would continue to receive it. The change is a change of funding source, moving the cost from energy bills to general taxation, consistently with the shift already applied to three quarters of the Renewables Obligation. The End Fuel Poverty Coalition has stated that six million low income households would move from a bill guarantee to a future government's discretionary choice.
On the scientific position
Richard Tice has stated that there is no evidence man-made carbon dioxide will change the climate, and has described the evidence base used by the IPCC as "absolute garbage." Nigel Farage has stated that human activity accounts for 3% of atmospheric carbon dioxide.
The IPCC's published position is that observed warming since the mid-twentieth century is attributable to human greenhouse gas emissions, not to solar or volcanic variation. Farage's 3% figure does not distinguish between natural and human sources of the gas.
On the legislative position
Contracts for Difference operate under the Energy Act 2013, administered by the Low Carbon Contracts Company on behalf of the government. Voiding or amending contracts signed under this framework would require primary legislation, a public consultation process, or a negotiated settlement with the counterparties involved, none of which Reform UK has published a timetable for.
Reform UK does not currently form the government, and no bill enacting any of the positions described in this piece has been laid before Parliament. Its public statements describe an intention, alongside a range of figures, and not a legislative schedule.
On the remaining costs
A windfall tax on wind, solar and Drax generation has been proposed without a stated rate or a projected yield. The grid upgrade that Reform criticises as too expensive has been costed by the party at a trillion pounds in one interview and at nearer two trillion pounds in another.
| Subject | Figure or quotation given | Source detail |
|---|---|---|
| CfD saving | £45 billion to £225 billion | Two published figures, one policy |
| Grid upgrade cost | £1 trillion, then nearer £2 trillion | Two interviews, one project |
| Household saving from levy repeal | £300 to £400, later £80 | Two dates, one claimed policy |
| Humanity's share of atmospheric CO2 | 3% | Not split by natural or human source |
Two figures, £45 billion and £225 billion, describe one policy. Two more, a trillion pounds and nearer two trillion pounds, describe one grid upgrade. The party publishing both pairs of figures is not currently in government.
Which of the figures above would you want an official costing for first?
The comparison point matters. Ofgem's confirmed Q4 2026 price cap of £1,723 is the bill any policy would have to reduce, and its policy-cost line sits at £103 of that total, not the £300 to £400 Reform quoted for the same repeal in early 2025.
Frequently asked questions
What saving does Reform UK claim from ending Contracts for Difference?
Reform UK has published two figures for the same policy: £45 billion and £225 billion. No calculation supporting either number has been made public.
What has Reform UK said about North Sea drilling and bills?
Nigel Farage has stated that more North Sea licences would bring bills down. Oil and gas are sold on a global market, so the price a UK barrel fetches is set by that market and not by where it was extracted.
How much would Reform UK's policy-cost cuts save a household?
Reform states that repealing five levies would remove about £80 a year from a policy-cost line currently set at £103 on a typical dual-fuel bill. In February 2025, Richard Tice quoted a saving of £300 to £400 per household for what appeared to describe the same change.
What has Reform UK said about the IPCC and climate change?
Richard Tice has described the IPCC's evidence base as absolute garbage and stated there is no evidence man-made CO2 will change the climate. Nigel Farage has stated that human activity accounts for 3% of atmospheric CO2, a figure that does not separate natural and human sources of the gas.
How much has Reform UK said the grid upgrade would cost?
Reform has costed the grid upgrade it criticises at a trillion pounds in one interview and at nearer two trillion pounds in another.
Would the Warm Home Discount survive under Reform UK's plan?
Reform states that existing recipients would continue receiving the £150 payment, but funding would move from energy bills to general taxation. The End Fuel Poverty Coalition has stated that six million low income households would move from a bill guarantee to a future government's discretionary choice.
Would Reform UK need new legislation to change Contracts for Difference?
Contracts for Difference operate under the Energy Act 2013 through the Low Carbon Contracts Company. Voiding or amending signed contracts under this framework would require primary legislation, a consultation process, or a negotiated settlement, none of which Reform UK has published a timetable for.
Is Reform UK in government?
No, Reform UK is an opposition party, and the positions covered here are its stated public statements, not measures currently in force.