According to City AM, the UK government has tacitly acknowledged that deploying low-carbon technologies – essential to quickly achieving net-zero emissions targets – is more expensive than using fossil fuels.
The government is planning measures to reduce energy costs ahead of a new industrial strategy to be published next week. As part of the budget review, the Department for Energy Security and Net Zero’s budget was increased by 16%, with additional funding for nuclear, wind and solar power. The aim is to eliminate almost all fossil fuels from UK electricity generation by 2030.
But according to a report by the Public Accounts Committee (PAC), which monitors government spending, Department of Energy officials, led by Ed Miliband, admitted that higher electricity prices were making low-carbon technologies more expensive – despite the official position that green technologies would lead to lower energy bills in the long term.
The PAC report’s publicly available minutes state: “Low-carbon technologies can be more expensive to operate than fossil fuel-based alternatives.” The report also criticises the fact that high household electricity prices in the UK do not reflect lower wholesale prices for clean energy – and that additional costs can arise from certain net-zero emissions measures.
The government’s response continues: “The price difference between electricity and gas must be eliminated to make it easier for consumers to choose clean technologies, such as heat pumps.”
This statement follows a previous government statement earlier this year, which said that the net-zero policy would lead to higher energy bills “in the short and medium term” – as first reported by the Telegraph.
