Analysts: The transition to green energy will add £100 to British households' bills.

According to The Sun: According to new analysis, millions of families could face an increase in energy costs of £100 next year due to government policies aimed at achieving net zero greenhouse gas emissions.

Energy analysts from Cornwall Insight noted that the changes being implemented to meet emission reduction targets will lead to higher energy prices for the average household.

Analysts' forecasts indicate that changes will lead to an increase in energy price caps by over £100 in April 2026 compared to January.

The energy price cap is the maximum amount that suppliers can charge per unit of energy and daily payment, which is reviewed every three months.

Among the reasons for the rise in bills, analysts cite costs of connecting new wind and solar power plants, building the Sizewell C nuclear power station, as well as upgrading gas networks during Labour's government.

There is also the possibility of further price increases due to the construction of power lines, underground cables, and substations.

This means households are likely to pay more for energy amid high inflation and financial difficulties.

The UK has committed to achieving net zero greenhouse gas emissions by 2050, which means that the total emissions will not exceed what is removed from the atmosphere.

The previous Conservative government recognized the commitment to net zero emissions by 2050, but Labour aims to accelerate the implementation of these plans.

However, the government faces the challenge of how to achieve these goals without increasing additional costs for households.

The Independent Office for Budget Responsibility reported that achieving net zero emissions could cost an astonishing £803 billion by 2050.

Analysts' Forecasts

Most experts believe that local production of renewable energy will help protect consumers from price fluctuations and reduce costs, although initial investments are very high at a time when households and the economy as a whole face challenges.

Before the elections, Energy Minister Ed Miliband promised to lower energy costs for households by £300 by 2030, reaffirming this pledge last month.

Cornwall Insight believes that investments in renewable resources will ultimately lower bills, which is important for long-term development.

“The rise in energy bills is never pleasant, and this latest review of transmission costs – albeit only provisional – will add another burden to the already existing financial difficulties faced by households,” noted Dr. Craig Lowry from Cornwall Insight.

Currently, the average energy bill for dual-fuel households stands at £1,720 per year. However, the energy price cap will rise again in early October to £1,755.

Another increase is expected in January due to seasonal fluctuations in procurement prices. The projected £100 rise in the bill is not related to variable gas costs but to costs for supporting and expanding the UK's energy network.

Experts believe that the costs for electricity networks alone will add £30 per year, with this figure potentially rising to £50 by 2028.

Green levies will add another £18, including £12 in upfront payments for the construction of Sizewell C. Upgrading the gas network necessary for the implementation of green hydrogen will also cost an additional £53.

“The rise in energy bills is not entirely unexpected, but it highlights the potential additional financial burdens that households will face,” said a spokesperson.

Households may ultimately end up paying more for the daily payment. This is a fixed daily charge that energy suppliers levy, regardless of the amount of energy used. Increases in daily charges raise controversies, as households cannot avoid paying them.

Help with Energy Bills

If you are having difficulty paying your energy bills, there are many support options available.

• For example, the Winter Fuel Allowance offers £300 to pensioners to cover heating costs during the cold months.
• Approximately 75% of pensioners are expected to receive this support this year.
• Families experiencing financial hardships may benefit from the Household Support Fund.
• Each council in England has received a share of £742 million from the fund to distribute among those in need.
• Thousands of households will also receive the Warm Home Discount worth £150.

If you are falling behind on your energy bills, you can also get help from your energy supplier.

British Gas has announced a £140 million support package for customers facing financial difficulties. This includes free energy grants, tailored support for households and small businesses, as well as funding for consulting centers and charities.

Octopus Energy offers the Octo Assist fund of £30 million to help customers manage their energy bills.

Additionally, EDF's Customer Support Fund provides grants and assistance to vulnerable customers with energy debts.