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UK households to pay more for continued use of gas as government 'rebalances' subsidies

Published 30/03/2023, 09:00
Updated 30/03/2023, 09:41
© Reuters.  UK households to pay more for continued use of gas as government 'rebalances' subsidies

Proactive Investors - Households will face higher energy bills if they refuse to switch from gas under new measures from the government to hit its net-zero targets.

According to ministers, the plan involves changing the balance of subsidies to make gas less attractive than electricity for the main household uses of heating and cooking.

Using gas could cost as much as £100 a year more under the new plan, according to reports today, while electricity costs will fall.

Grant Shapps, energy security secretary, said: “If we want people to switch to an electricity-based economy, it would be better if [levies] were shifted onto the gas side of things.

“It automatically makes the economics of an electric-driven economy better.”

Customers pay green levies in their bills, which were designed to help the renewable industry get established.

Currently, these amount to £131 on typical annual electricity bills but gas levies are only £34 and in the Skidmore report in January, a change to 'the balance' was recommended.

Confirmation of the change is expected in the government's raft of new energy measures as part of its 'Green Day', which is likely to include a renewed push to get households to switch away from gas-fired boilers.

A decoupling of gas and electricity prices is also expected, which should also reduce electricity prices after complaints nuclear and renewable generators made excessive profits during the recent energy crisis by linking their prices to the soaring cost of gas.

Read more on Proactive Investors UK

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Latest comments

gas is way better and healthier for cooking, heating etc this country has no natural resources gas, coal, oil etc hence shifting to electric as easy to produce.
Switch over to hydrogen
is like these so-called leaders are drunk. If you want people to use electricity more, make it cheap, but instead they will make it more difficult for the common ones. they want people to use public transport but in some cities public transport is a mess and very expensive
They will make using gas more expensive and after that when everybody uses only electricity they will inflate the prices as they wish because you wont have a choice anymore. Your only option will be just electricity and as we all know the demand for electricity keeps going up all the time with all electric cars, heat pumps…. High demand means higher prices as we have seen it in the last year or so . Offer and demand …
They going to probide electric boilers then? Neighbour had one put in three months ago. Their new monthly electric bill £1100 a month ,only thing that has changed is the electric bolier.
dreaming again
UK is DONE
could they reduce electricity prices instead?
Rubbish, they are just changing thinghs without any thought gor the future. Where will the extra amount of electricity come from? Maybe think of that before changing thinghs around. For the average consummer, it might be cheaper to change to all electric for now, but in the long run it will be more expensive. Think how much electricity you need to heat a decent sized home as opposed to gas.
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