UK Energy Crisis: Self-Inflicted or Planning Constraints?
The United Kingdom's energy crisis is largely self-inflicted, according to Alan Chang, founder of Fuse Energy - a UK-based energy provider and infrastructure developer valued at $5 billion (£3.72 billion). Chang argues that the UK possesses all necessary elements to drive investment in the energy sector but lacks a planning system capable of transforming that potential into concrete projects.
"There's more money chasing infrastructure projects than there are infrastructure projects," Chang told City AM. "This is essentially a self-imposed bottleneck to growth."
The Rise of Fuse Energy
Just weeks ago, Fuse announced it had reached profitability at the corporate level after launching less than three years ago, positioning the company as one of the fastest-growing enterprises in the UK.
The company currently supplies energy to over 300,000 households, generates annual revenue exceeding $550 million (£409 million), and recently extended its Series B funding round, bringing total capital raised to $250 million (£186.1 million).
| Key Metrics of Fuse Energy | Value |
|---|---|
| Households supplied | 300,000+ |
| Annual revenue | $550 million (£409 million) |
| Total capital raised | $250 million (£186.1 million) |
| Revenue growth rate (Q1) | 32% |
The Planning Barrier
Chang insists that planning delays remain the biggest obstacle to faster growth across the entire energy sector, despite repeated government commitments to accelerate infrastructure deployment.
"There's a lot of talk about planning reform, but nothing concrete," he said. "If I had a magic wand and one wish, I would want planning to become simpler and quicker."
The former Revolut executive also believes existing regulations should be reviewed to determine whether they still serve a useful purpose.
"A very capable person should review all of the country's planning regulations, line by line, and ensure that every line actually makes sense," he said. "I'm not asking for the removal of regulation entirely. Just make it sensible."
Building a New Energy Company Model
Founded in 2022 by Chang and former Revolut colleague Charles Orr, Fuse has attempted to challenge traditional energy suppliers by combining retail supply and software under a single enterprise.
The company claims it achieved operational profitability in December 2025 and generated £131.8 million in revenue last year, up from £15.3 million in 2024.
Revenue growth exceeded $550 million in the first quarter after increasing by 32% during the period.
Recent investors include 20VC and Collaborative Fund, alongside existing investors Balderton Capital and Lowercarbon Capital.
| Comparative Features | Fuse Energy | Traditional Suppliers |
|---|---|---|
| Business model | Combined supply and software | Supply-focused |
| Technology | Machine learning demand forecasting | Basic management systems |
| Operating costs | 17% lower | Standard spending |
| Decision-making speed | Fast, data-driven | Slow, procedural |
The Technology Behind Success
Fuse develops and owns renewable energy assets while using proprietary software to forecast customer demand and manage energy purchasing, which Chang enables the company to eliminate approximately 17% of operating costs compared to traditional suppliers.
"We've reduced costs by about 17% compared to the average energy company in the UK," he said.
Most of that advantage comes from the software. Fuse uses machine learning models combining various factors, including weather forecasting and household consumption patterns, to forecast demand at the asset level.
Expansion Plans
The company is currently opening a new 32,000 sq ft headquarters at Canary Wharf and plans to hire more than 380 people next year as it expands into Ireland and Spain.
Despite criticizing the UK's regulatory environment, Chang remains optimistic about building a business in the UK.
"There are a lot of terrible things about the UK economy, that's somewhat true," he said. "But there's one thing that the UK has that most other countries don't. That's incredible talent."
He added: "America is a much bigger market. In almost every dimension, America is better. But there's incredible talent in the UK and Europe, and that's what matters to me."
Fuse Energy's rapid success under Chang's leadership demonstrates that with appropriate planning and advanced technology, the UK energy sector can overcome current challenges and become a beacon in the global energy transition.