Options for Energy Bill Reform

Decarbonising and electrifying residential heat is crucial if the UK is to achieve its Net Zero targets. At present, however, many policy costs – such as Feed-In Tariffs, Renewable Obligation Certificates and Contracts for Difference – are imposed on electricity bills but not on gas, penalising those who do invest in cleaner options. Unless policy changes, UK households that opt for an air source heat pump will be paying £305 more a year in 2030 in energy bills than those with a gas boiler.

In this new report for 5 major energy companies, Public First presents:

    • Analysis of how well the UK compares to other countries on uptake, policy and incentives for decarbonised heating and heat pumps
  • New modelling looking at the incentive, distributional and fiscal implications of different options for how we might shift where policy costs are charged

You can read the full report here.