UK faces mobile network rationing and surge pricing as energy bills become unsustainable: report

The UK’s major telecoms operators have warned they could be forced to ration mobile network access to combat the costs of rising energy prices.

The Telegraph reports that giants including VodafoneThree, Virgin Media O2 and BT-owned EE have issued a stark warning to the government over energy costs after being excluded from Chancellor Rachel Reeves’s latest support scheme.

One proposal is rationing access to their networks or slowing down speeds to help reduce energy use. Another option is surge pricing, which would charge customers an additional fee at peak times.

Executive have also warned that rising energy costs could also force the companies to scale back plans to expand their 5G networks.

The warnings come amid a fresh spike in wholesale electricity and gas prices, exacerbated by geopolitical tensions including the ongoing conflict in the Middle East.

Telecoms networks are highly energy-intensive, with base stations, data centres and switching equipment consuming vast amounts of power to maintain always-on connectivity for millions of users.

Industry sources told The Telegraph that mobile operators face bills running into the hundreds of millions of pounds annually.

Unlike heavy manufacturers, telecoms firms were left out of the government’s expanded British Industrial Competitiveness Scheme (BICS), which offers exemptions from certain green levies and network charges for energy-intensive sectors starting in 2027.

The scheme aims to shield around 10,000 businesses – primarily in manufacturing, steel, automotive and pharmaceuticals – but digital infrastructure providers argue they provide critical national infrastructure and deserve similar treatment.

A senior executive at one major operator described the exclusion as “short-sighted,” warning that without relief, the sector could be forced to pass costs onto consumers or compromise service quality.

Telecoms networks already account for a significant portion of the UK’s electricity demand, and 5G rollout requires denser infrastructure that increases power usage.

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