Britain’s dash to net zero will fuel a £100 rise in household energy bills from next April, according to leading forecasters.
Energy analysts Cornwall Insight said the cost of connecting new wind and solar farms, construction of the Sizewell C nuclear power station and upgrades to the gas networks would all be felt in the form of higher bills next spring.
The research suggested that further rises will follow as the construction of pylon lines, underground cables, substations and Sizewell all accelerate.
The warning cast yet more doubt on Energy Secretary Ed Miliband’s pre-election pledge to cut household energy bills by £300 by 2030 – a promise he repeated last month.
Craig Lowrey, at Cornwall Insight, said investing in renewables would eventually reduce bills – but “first we need to lay the foundations. There are a lot of costs involved in the transition”.
He added: “Rising energy bills are never welcome, and this latest view of transmission charges – although only indicative – will add yet another cost to the long list of pressures on household finances.”
Construction of the Sizewell C nuclear power station is expected to contribute to higher household energy bills – Chris Radburn/REUTERS
The average bill for a dual-fuel home currently stands at £1,720, but is already set to rise to £1,755 from October. Another rise is expected in January.
The jump at the start of next year is forecast due to seasonal increases in wholesale costs as demand for energy rises over the winter.
However, the £100 increase predicted from April has nothing to do with the wholesale cost of gas, which is actually forecast to fall slightly next spring.
Instead it is due to the cost of maintaining and expanding the UK’s power grid, with electricity network costs alone adding £30 a year – rising to £50 a year by 2028.
Green levies will add another £18, of which £12 is advance payments for building Sizewell C. Upgrading the gas network – partly to accommodate the introduction of green hydrogen – will add a further £53.
Cornwall Insight said: “Investment is needed to support the UK’s transition to a low-carbon energy system.
“As more renewable energy is generated in remote areas – such as onshore wind farms in Scotland and offshore wind farms in the North Sea – significant investment is needed to build new transmission lines and reinforce the grid to carry electricity around the country to where households are located.”
Most of the net zero investment will be paid for through standing charges, something Cornwall Insight said was “a point of increasing political and regulatory contention in recent years given … the inability of households to avoid standing charges through more flexible consumption”.
Household energy debts have risen from £1.3bn to £4.2bn since January 2020, with poorer households hit particularly hard.
Energy UK, which represents power suppliers, said the Government should rethink the levies added to bills.
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It said: “Lowering bills while delivering the urgent investment our energy system needs is a difficult balance to strike.
“It will require a clearer, more coordinated approach to managing the costs of investment and the social and environmental policies currently on the energy bill.”
Chris O’Shea, the boss of British Gas-owner Centrica, has called for net zero grid upgrades to be paid for through general taxation rather than energy bills.
Claire Coutinho, the shadow energy secretary, said: “Ed Miliband will always put achieving net zero above the cost of living.
“He promised to cut bills by £300 but this analysis by Cornwall Insight shows the reality – every single family in Britain will pay the price for his net zero zealotry.
“Cheap energy must come first.”
Richard Tice, the Reform Party’s energy spokesman, said: “Labour came to power promising a cut of £300 per bill. Their lies have been exposed and voters will not forget, nor forgive.”
The Government was contacted for comment.