One in four households in Wales are living in fuel poverty despite the country producing more energy than it consumes, raising questions over whether Plaid Cymru can deliver on its long-standing promise of a national energy company.
Official Welsh Government figures released in August 2025 showed that 340,000 households were experiencing fuel poverty in October 2024, equivalent to a quarter of all homes in Wales.
Another 215,000 households were considered at risk, while 63,000 were classified as being in severe fuel poverty, meaning they spend at least 20% of their income on energy bills.
The figures represent a sharp deterioration since the energy crisis of 2021 and 2022. Prior to that period, around one in seven Welsh households faced fuel poverty, compared with one in four today.
Although energy prices have eased from their record highs, they remain significantly above pre-crisis levels, while household incomes have failed to keep pace.
Wales possesses extensive renewable energy resources, including more than 1,000 miles of coastline, five million acres of land and strong offshore wind potential. Yet critics argue that the issue lies not in energy generation but in ownership and who benefits financially.
In 2017, Plaid Cymru commissioned proposals for a publicly owned national energy company, Ynni Cymru, designed to lower bills through bulk energy purchasing, expand solar installations and support investment in affordable clean energy.
Nearly a decade later, supporters say the case for the project has become even stronger.
“The original analysis has held up well,” the report states. “The technology has matured, the costs have fallen dramatically, and fuel poverty in Wales has worsened. Everything about the case for a national energy company is more compelling in 2026 than it was in 2017.”
Under the Labour-Plaid Cymru co-operation agreement, the Welsh Government established Ynni Cymru in 2023. Based at M-SParc on Anglesey, the initiative has supported 32 Smart Local Energy System projects and distributed £10 million in grants during its first full year, followed by another £10 million for 2025-26.
The programme has helped community groups and public bodies develop locally owned renewable energy schemes, but critics argue it falls short of the original ambition.
“Ynni Cymru as currently constituted is a valuable start,” the report concludes. “It is not the destination.”
Researchers say advances in renewable technology have strengthened the economic case for a national energy provider. The cost of residential solar systems has continued to fall, while home battery storage has become increasingly affordable.
A typical 4kW solar system now costs around £6,000, while large-scale procurement by a national energy company could reduce prices by a further 20% to 30%, according to the report.
Plaid Cymru’s 2026 manifesto pledged to create a new national energy company, introduce a National Energy Strategy and ensure communities retain a stake in major renewable projects.
Supporters believe the party now has an opportunity to transform those commitments into policy.
“The political moment exists, the policy framework is ready, and the technology and market conditions have never been more favourable,” the report says. “The task now is not further study or consultation. It is implementation.”