Source · Select Committees · Energy Security and Net Zero Committee
Recommendation 14
14
Acknowledged
Reduce policy cost difference between gas and electricity bills by end of 2025
Recommendation
We recommend that the Government, by the end of 2025, considers reducing the policy cost difference between gas and electricity bills, creating an incentive for households to adopt electric heating systems. The Government should do this carefully, recognising that almost all gas use is for essentials such as heating and cooking, differentiating gas from electricity. During this process, the Government must provide support for those who lose out due to the policy cost changes. (Recommendation, Paragraph 92)
Government Response Summary
The government acknowledges the need to address the price disparity between electricity and gas to incentivise clean technologies and commits to working relentlessly over this Parliament to reduce electricity bills, but notes it is a complex issue requiring careful consideration.
Government Response
Acknowledged
HM Government
Acknowledged
For the government to achieve the clean power 2030 target it is critical that our electricity price reflects the cheaper wholesale price of clean energy. As the Committee concludes, the current distribution of policy costs means that the cost of low carbon technologies is artificially inflated compared to fossil-fuel powered alternatives. The price disparity between electricity and gas needs to be addressed to make it more attractive for consumers to install clean technologies like heat pumps. Over this Parliament the government will be working relentlessly to translate the much cheaper wholesale costs of clean power into lower bills for consumers. This will be core to every decision we make. This is a complex issue and there are difficult decisions to be made which must be informed by robust research and analysis. We are determined that we deliver on both fairness and affordability.