Kadri Simson says electricity needs 'significant investment'
In a bid to reach net zero goals, households are set to be penalised if they don’t switch from gas in a brand new rule to be announced today. Ministers hope the proposal will help reduce the use of fossil fuels and drive the uptake of green power. However, it may also drive up household gas bills by as much as £100 a year.
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While energy bills are expected to go down.
Speaking on Wednesday, Grant Shapps, secretary of state for energy security and net zero, commented on the new proposal.
He said: “If we want people to switch to an electricity-based economy, it would be better if [levies] were shifted onto the gas side of things.
“It automatically makes the economics of an electric-driven economy better.”
Electricity is considered a more environmentally-friendly choice due to its ability to be produced from renewable sources like solar panels and wind turbines.
In contrast, burning gas emits carbon into the atmosphere.
Other projects pushing for a greener UK have been receiving more support.
They include capturing carbon underground, insulating homes and producing clean hydrogen.
At present, households support the expansion of green energy, such as wind turbines, through levies on their electricity bills, leading to higher electricity costs than gas.
Levies, along with other fees for insulation and aiding vulnerable households, make up an average of £131 of an annual electricity bill, while typical gas bills only receive a subsidy payment of £34.
Government officials are concerned that this pricing difference discourages individuals from replacing their gas boilers with electric heat pumps.
A timeframe for the policy hasn’t been issued yet.
