The head of one of Britain's largest energy suppliers has issued a stark warning that the Government's Net Zero ambitions could result in energy prices becoming unaffordable for millions, potentially causing the entire green drive to become a “complete and utter failure”.
A Call for Balance in Energy Policy
Chris O'Shea, the Chief Executive of Centrica, which owns British Gas, has publicly urged the Labour government to find a sustainable equilibrium between the transition to renewable energy and keeping household bills manageable. His intervention comes amidst growing concerns over the cost of living and last month's significant increase in the energy price cap.
Mr O'Shea, whose company supplies energy to 7.5 million customers across the UK, expressed support for expanding wind and solar power. However, he emphasised that this must not come at the expense of affordability. He told BBC Radio 4, “We must ensure we don't end up with an energy system that's unaffordable. Because if we've got a 100 per cent clean energy system and nobody can afford it, that will be a complete and utter failure.”
The Impact of Policy on Bills
The energy boss highlighted the direct consequences of government policy on consumer costs. The regulator, Ofgem, has stated that 'policy costs' imposed by Energy Secretary Ed Miliband were a factor in the recent price cap rise, which increased at double the rate forecast by industry analysts.
The latest adjustment saw the cap rise by approximately £35 to £1,755 per year. This means the energy price cap is now £187 higher per year than when the Labour government came into power, placing additional financial strain on households.
Looking Forward: A Debate on Homegrown Energy
Mr O'Shea called for a crucial national debate on 'homegrown energy', specifically referencing Labour's manifesto pledge to stop issuing new licences for oil and gas fields in the North Sea. While this policy aims to accelerate the shift to renewables, it raises questions about energy security and cost.
Despite the warnings, the Centrica CEO offered a note of optimism. He suggested that an increased reliance on domestic wind and solar power could shield the UK from the kind of extreme price volatility witnessed after Russia's invasion of Ukraine in 2022. The challenge, he insists, is to build a system that is both clean and economically viable for all.
