Key facts
- A report backed by the Conservatives suggests households could save £540 per year after 2030 by scrapping net zero regulations.
- The Onward think tank report estimates the total cost of net zero policies between 2030 and 2050 at £320 billion.
- The report's modelling suggests potential bill reductions of £200 per year by 2035 for average households with additional measures.
- Savings are linked to network spending reforms and the removal of carbon taxes.
- The proposed energy system would still be 80% clean by 2050.
- The report acknowledges trade-offs, including increased carbon emissions and greater exposure to gas price volatility.
The Conservative Party has endorsed a report suggesting that households could save approximately £540 per year after 2030 if net zero regulations are abandoned in favor of prioritizing cheap energy. The report, published by the centre-right think tank Onward, posits that current net zero policies impose an additional cost of £320 billion on the UK between 2030 and 2050, spread across roughly 29 million households.
Onward's modelling indicates that a household with average consumption might see a reduction closer to £200 annually by 2035 if measures such as moving the Warm Home Discount and other energy costs into general taxation, alongside cutting debt-related expenses, are adopted. The study, titled 'Firm Foundations,' compares the trajectory of current policies with an alternative pathway focused on demand and supply.
Most of the projected savings stem from reforms to network spending, ensuring supply sources are closer to power lines, and the elimination of carbon taxes. The analysis also relies on assumptions of nuclear energy providing increased electricity generation without significant cost inflation. Researchers stated that even with these changes, the overall energy system would remain 80% clean by 2050.
Conservative leader Kemi Badenoch stated that the plan represents a "common sense approach" to climate change, focusing on results rather than just targets. She contrasted this with Labour's perceived adherence to failing plans and Reform's alleged climate change skepticism. Shadow energy secretary Claire Coutinho is expected to elaborate on the costs associated with renewables.
The report explicitly acknowledges trade-offs, including the production of 524 million tonnes of cumulative carbon emissions, implying a cost exceeding £600 per tonne for removing the final unabated gas emissions. It also concedes a greater vulnerability to gas price shocks, estimating a 250% spike in 2040 could add £6 billion to fuel costs. The researchers noted that policymakers would need to determine how to reduce costs through other taxation methods.
In response, Labour's energy secretary Miatta Fahnbulleh criticized the Conservative proposal, arguing it would "tie Britain to the fossil fuel rollercoaster and keep bills higher for families." She asserted that Labour is investing in clean energy jobs and reducing electricity tax to provide relief this winter, while Kemi Badenoch's approach would jeopardize jobs and increase bills.