Source · Select Committees · Energy Security and Net Zero Committee
Recommendation 12
12
Higher electricity prices significantly disincentivize consumer switch to electric heating systems
Conclusion
Electricity is much more expensive than gas in the UK because gas generation sets the marginal wholesale price and most levies are placed on electricity bills, rather than gas. This is a significant disincentive for consumers switching from fossil fuel to electric heating and a major barrier to decarbonising homes. Lowering the price of electricity relative to gas has been the tipping point needed to encourage the mass uptake of low carbon heating systems in some European countries. (Conclusion, Paragraph 90)
Government Response
A response document is linked to this report, dated 18 August 2025. Response attribution to this conclusion has not been verified. Read the response document ↗