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UK is ill-prepared to cope with “inevitable” gas price rises
Report from newly launched ECC says UK is badly prepared to absorb future energy price shocks, and underlines need to improve energy efficiency and invest in renewable energy
ECC recommendations include ramping up home energy efficiency and strengthening regulations for the private rental sector, as well as ensuring energy-efficient new builds
The UK is “critically vulnerable” to spikes in gas prices following “years of policy inconsistency and insufficient investment”, according to the Energy Crisis Commission (ECC).
The ECC launched in August and includes representatives from Energy UK, CBI, Citizens Advice, National Energy Action and University College London (UCL).
It has now published recommendations that include increasing investment in home energy efficiency, introducing stronger regulations for the private rental sector, and implementing the Future Homes Standard to ensure new builds are energy-efficient.
A major acceleration in the rollout of electric heat pumps is also recommended, alongside a clearer plan for strategically transitioning households away from gas heating.
David Laws, Chair of Energy UK, also chairs the ECC. He said: “The UK has experienced regular energy price shocks over the past 50 years. Future oil and gas shocks seem inevitable, but the UK remains poorly prepared to absorb these.
“Experience in other countries shows that global energy price shocks need not have catastrophic impacts if we take the actions detailed in this report.”
Jim Watson, Director of the UCL Institute of Sustainable Resources said: “The report emphasises the need to improve energy efficiency and invest more rapidly in non-fossil sources of energy. A comprehensive plan is required to achieve this that covers all stages of the gas supply chain: from offshore production in the North Sea to the use of appliances in homes.”
Gillian Cooper, Executive Director of Partnerships and Advocacy at Citizens Advice said: “Sluggish action on green upgrades, supplier failures, poor practices like forced prepayment meter installations, and inaction on targeted bill support has left millions of households feeling the devastating impacts of the crisis first-hand. It’s vital that lessons are learned.”
Louise Hellem, Chief Economist at the CBI said: “Accelerating the UK’s journey to net zero will require decarbonising energy markets, increasing flexibility and improving energy efficiency. ECC recommendations provide a blueprint to build resilience which the government should work with business to deliver.”
“Even a decade ago, there was a consensus that effective public investment in home energy efficiency is urgently needed to improve millions of cold, damp, unhealthy homes.”
Professor Ruchi Choudhary, who leads the University of Cambridge’s Energy Efficient Cities Initiative, said the findings of the ECC report were consistent with findings across academic literature.
She said: “Even a decade ago, there was a consensus that effective public investment in home energy efficiency is urgently needed to improve millions of cold, damp, unhealthy homes.
“Equally important is the strengthening of top-down regulations at all scales, especially in the private rental sector. We are now waiting to hear from the new administration regarding their immediate strategy and implementation plan, which must also include planning reforms, with measurable milestones.”
Ed Miliband, Secretary of State for Energy Security and Net Zero said: “This report shows industry experts support making Britain a clean energy superpower, which is a core mission of this government.
“We overturned the nine-year onshore wind bans, have overseen the most successful renewable auction in history, set up Great British Energy and taken action to lift a million renters out of fuel poverty with new energy efficiency standards.”
