Recommendation 24

The Department for Business, Energy & Industrial Strategy, having assessed a number of different scenarios for meeting net zero by 2050, has estimated that electric cars will increase electricity demand by around 20% by 2050 and we wanted to understand the network’s ability to cope.53 The Department explained that the increase in demand for electric vehicles is set within the context of an overall doubling of demand for electricity by 2050. The Department is approaching this from the perspective of generation and transmission and distribution networks; it told us mechanisms like the capacity market and contracts for difference are in place to obtain the right energy sources at the right time, and that transmission and distribution network operators are responsible for upgrading the network which they do within controls set by Ofgem.54 Not all changes to the system will push costs up, but currently, the Department estimates net changes to the energy system will add 2% to consumer bills in 2030.55 48 Qq 30, 55 49 Q 55 50 Qq 53–54; Letter from the Department for Transport and Department for Business, Energy & Industrial Strategy to the Committee dated 30 March 2021 51 Qq 19–21; Letter from the Department for Transport and Department for Business, Energy & Industrial Strategy to the Committee dated 30 March 2021 52 Q 30 53 Q 47; C&AG’s Report, para 2.28 54 Q 47 55 Q 48 Low emission cars 15