Tories say households could save £540 a year by scrapping net zero
The Conservatives have said that households could save about £540 a year after 2030 if net zero regulations are scrapped with a commitment to make energy as cheap as possible.
A report published by centre-right think tank Onward and backed by the Tories said the cost of net zero came to an extra £540 per household a year between 2030 and 2050.
The headline figure per household is a total divided across bill payers, rather than a forecast of what any household would see knocked off its bill. The Onward report suggested that a full focus on net zero by 2050 cost the UK about £320bn between 2030 and 2050.
The £320bn is spread across two decades and covers roughly 29m households. Onward’s own modelling of an actual bill puts the reduction closer to £200 a year by 2035 for a household with average consumption, rising to £290 further measures — such as moving the Warm Home Discount and other energy costs into general taxation, and cutting debt-related costs — are also adopted.
The study, titled Firm Foundations, which used modelling by the consultancy Transira Energy, compares the likely trajectory of current policy against an “alternative policy pathway” built around demand and supply.
Most of the savings from current energy policy between 2030 and 2050 are down to network spending reforms that would ensure supply sources are closer to power lines and the removal of carbon taxes.
There are also a number of assumptions hinging on nuclear energy providing further electricity generations without inflated costs.
Researchers at the Conservative-aligned think tank said that the changes to 2050 would still make the overall energy system 80 per cent clean.
Badenoch backs plan to end net zero
Tory leader Kemi Badenoch said the “serious plan to deal with climate change” involved focusing on results and “not simply setting targets and congratulating ourselves afterwards”.
“This report shows what a common sense approach looks like. Unlike Labour, who are wedded to the old failing plans; or Reform, who still don’t believe climate change is happening, the Conservatives will protect our environment, protect our energy security and make energy cheaper,” she said.
Shadow energy secretary Claire Coutinho is set to deliver a press conference on Wednesday detailing the cost of renewables.
She will tell audience members: “Two years after Ed Miliband cancelled the true costing of renewables that I started, Onward have stepped in to finish the job.
“This is the single most detailed costing of the electricity system that has been produced in British politics.
“The findings are remarkable… It’s the work that should have been done by the government but has not been because they are more driven by ideology than evidence.”
The report is explicit about some trade-offs given 524m tonnes of cumulative carbon emissions would be produced, implying a cost of more than £600 per tonne for removing the last tranche of unabated gas, over twice the highest carbon price the energy department currently models for 2050.
It also concedes greater exposure to gas price shocks, estimating a 250 per cent spike in 2040 would add £6bn to fuel costs. Researchers said policymakers would “have to decide” how to lower costs through other taxes.
Miatta Fahnbulleh, the energy secretary, said the plan backed by the Tories would “tie Britain to the fossil fuel rollercoaster and keep bills higher for families”.
She added: “Labour is investing in more clean energy jobs, cutting tax on electricity bills to give families breathing space this winter and we’re taking action to tackle the climate crisis and bring down bills for good. Kemi Badenoch would put jobs at risk and increase bills.”