44% of the increase in UK energy bills is due to net zero

 Wholesale gas prices have fallen, resulting in the UK energy price cap being reduced by 7% last week. In the following, David Turner provides an overview of what has changed in our energy bills since the price cap was introduced in January 2019.

While gas and electricity costs have come down, the net zero-related charges on our energy bills have gone up. “Net Zero costs have risen by £167 from October 2018 to £389 in the latest price cap,” he says.

Additionally, some net zero related costs are hidden as they are included in other charges on our bills, such as carbon tax and smart meters. “In the new price cap model, most of [the costs for smart meters] seem to have been rolled into Core Operating Costs. These other costs have gone up by £108 since 2018 to £223 today.”

Overall, excluding carbon taxes and smart meters, 44% of the increase in our energy bills since 2018 has been due to the Government’s pursuit of “Net Zero.” And we can expect Net Zero costs to increase substantially as more intermittent renewables are added to the network. Carbon taxes on fuels will also likely increase due to the UK re-joining the EU Emissions Trading Scheme, making gas more expensive for UK consumers....<<<Read More>>>...