Post: Faster electrification would cut energy bills, says CCC

Faster electrification would cut energy bills, says CCC

The Climate Change Committee’s (CCC) latest annual assessment of the government’s progress in reducing emissions has warned that households are facing higher energy bills because the UK is not electrifying fast enough.  

The report, published on 24 June, noted that emissions fell 1.8% in 2025 and that the UK is on track to meet the fourth and fifth carbon budgets. Electric vehicle uptake continues to grow, with nearly one in four new car sales now electric and a record amount of new renewable energy was contracted in the latest auction. But progress in electrification has slowed in other areas including heat pump installations in existing homes (up 7% this year compared to 56% the year before). 

The share of electricity in industrial energy use also fell slightly. The report noted that these risks increase exposure to fossil fuel price shocks and puts later carbon budgets at risk. It called on the government to implement more ambitious plan to electrify these key parts of the economy, including further action to reduce the cost of electricity.  

Recommendations in the report include: 

• make electricity cheaper through measures such as removing remaining policy costs from electricity bills
• enable a more rapid transition to EVs, for example by expanding affordable charging infrastructure
• accelerate the installation of heat pumps in buildings by cutting costs, removing barriers, and supporting low-income households
• deliver on industrial electrification including speeding up grid connections to remove barriers for businesses electrifying operations.