CCC backs electricity price reduction

UK: The Climate Change Committee (CCC), the UK government’s advisory body, has called for a reduction in electricity prices to speed the uptake of clean technologies, such as heat pumps.

This is one of a number of recommendations contained in the CCC’s Progress on emissions report presented to parliament today. 

The independent, statutory body found that government policies to reduce emissions have improved since last year. With more action, the UK can hit its legally binding climate targets and improve energy security for households and businesses across the UK, it says.

The CCC sees ensuring the required scale-up in roll-out of heat pumps and the support for industrial electrification as key to the government meeting its targets. 

“Our highest-priority recommendation is to remove policy costs from electricity prices,” the report states. “This will support industrial electrification and ensure the underlying lower running costs of heat pumps compared to fossil fuel boilers are reflected in household bills.”

The CCC estimates that doing this could reduce the ratio of domestic electricity to gas prices from around 4:1 currently to between 2:1 and 3:1. 

“The Government has committed to consulting on this, but without any timetable. It should set out its preferred option and consult on it urgently,” the report says.

It also calls on the government to provide the confidence and certainty to scale heat pump deployment in existing buildings.

“These issues need to be addressed urgently in the government’s forthcoming Warm Homes Plan and Industrial Strategy, both due this year,” the CCC says.