This article investigates the potential for an entirely new structure for the electricity industry. This aims to provide energy services, such as light and heat, in the most economical way, by combining on-site generation with comprehensive energy efficiency measures. As well as leading to improved energy efficiency, it is shown how such an approach is more compatible with renewable sources of energy. It is also argued that such a structure would open up many profitable new investment opportunities to the electricity industry. The article explains why the traditional model for electricity systems fails to deliver both energy efficiency and renewable energy, and examines the effects that an energy services approach might have on the electricity industry if adopted on a wide scale. Factors that may cause the transition are also discussed. The article concludes that such a radically new approach may be the best way to deliver the large reductions in emissions required to mitigate climate change.