UK households face £900 energy bill hike by 2030 due to ‘Net Zero’

A major report by Professor Gordon Hughes warns that the UK’s transition to ‘Net Zero’ will significantly raise household energy bills, with an estimated £900 increase by 2030.

Businesses will also bear the cost, leading to higher prices for goods and services, potentially adding up to £1,800 in extra annual expenses per household.

Hughes is an economist specialising in energy and environmental policy who was previously Professor of Economics at the University of Edinburgh and an advisor to the World Bank.

Hughes’s findings contradict the UK government’s claim that a fully decarbonized electricity system would lower bills.

Energy Secretary Ed Miliband insists that sticking to “clean energy goals” is essential, but Hughes argues that energy costs will rise by at least 75%, creating economic strain on consumers and businesses.

Hughes said, “While Mr Miliband’s department have resolutely refused to put a cost on the Net Zero grid, it is vital that we understand the direction he is taking us. The plan is clearly unaffordable.”

The report also challenges the notion that volatile fossil fuel prices are the main cause of rising electricity costs.

Hughes highlights that green taxes, levies, and subsidies now account for over three-quarters of household energy bills.

Despite investments in renewables, the UK will still need to build new gas-fired power stations to maintain grid stability, costing an estimated £150 billion over five years.

With increasing reliance on European electricity imports, British consumers could face further instability.

Hughes warns that energy-intensive industries will struggle to remain competitive, potentially leading to job losses and factory closures. However, the UK government rejects the report’s conclusions, insisting that clean energy investments will create a more stable and affordable system in the long run.

Image credit: Nicholas Doherty