The UK Energy Research Centre (UKERC) has warned that Labour’s plan to achieve a 95% low-carbon electricity grid by 2030 faces “significant challenges”, with “very little room for error” to avoid delays and prevent vulnerable households from paying higher bills.
The government has promised that the shift will ultimately lower bills by reducing exposure to volatile global gas prices, but UKERC noted that no official cost comparison has been provided against the previous government’s 2035 deadline. Consumers expecting cheap renewables to translate directly into lower energy bills would probably be disappointed, the report said.
UKERC highlighted that the National Energy System Operator (Neso) has not been clear about the direct cost impact of changing the generation mix. While reduced exposure to gas market volatility is a benefit, policymakers face challenges delivering clean power on time while ensuring consumer benefits.
Beyond 2030, even bigger challenges loom, including the multibillion-pound cost of retiring Britain’s gas pipelines. UKERC warned that network costs could fall on a diminishing number of customers, pushing up prices and hitting renters and low-income households hardest. Disconnecting customers from the gas grid could cost up to £29bn, with dismantling pipes adding another £25bn.
The researchers called for a “whole system plan” for retiring the gas network, including decisions on heating technology, boiler phase-out dates, and hydrogen’s role. Jess Britton, UKERC co-director, said the transition must not leave anyone behind, stressing the need for energy efficiency and targeted support.
A government spokesperson countered that clean power by 2030 is achievable, as shown by Neso’s independent report, and would deliver a more secure system with lower electricity costs and bills.
