The Committee on Climate Change

Low-carbon policies provide insurance against risk of high costs of unabated gas-fired generation

The CCC has launched its report, Energy prices and bills – impacts of meeting carbon budgets. The report assesses the impact of carbon budgets on energy bills and confirms that annual household energy bills could increase by £100 in 2020 to support development of low-carbon technologies.

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Expected bill increases beyond this timeframe are likely to be limited. In contrast, continued reliance on unabated gas-fired generation carries the risk of electricity bills for the typical household being up to £600 higher than under a low-carbon power system over the next decades.

The report considers the impact of meeting carbon budgets on household, commercial and industrial sector energy bills, and concludes that it is economically sensible to insure against future high prices by investing in a portfolio of low-carbon technologies over the next two decades.

Lord Deben, Chairman of the CCC said:

“Our analysis confirms the benefits of adopting a strategy which invests in low-carbon technologies. This provides a portfolio of energy sources as insurance against the risk of high gas prices. It lessens the impact on household bills in the long term and enhances the competitiveness of UK industry.”

Download full report

Download press release

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