Tories say households could save £540 a year by scrapping net zero

The Conservative Party has claimed that households could potentially save around £540 annually following 2030 if net zero regulations were abandoned, with a promise to keep energy costs as low as possible. A report by the right-leaning think tank Onward, supported by the Tories, indicates that the expense of achieving net zero is an additional £540 per household each year from 2030 to 2050.

This figure represents the total cost divided among all bill payers, rather than an estimate of the exact reduction any household would experience. The Onward report estimates that committing to net zero by 2050 would cost the UK approximately £320 billion between 2030 and 2050, spread over two decades and encompassing roughly 29 million households.

When considering actual household bills, the report suggests a reduction of roughly £200 per year by 2035, with potential increases to £290 if additional measures such as incorporating energy costs into general taxation and reducing debt-related expenses are implemented. The study, titled "Firm Foundations," employs modeling by the consultancy Transira Energy to compare the projected path of current policy with an alternative strategy centered on demand and supply.

According to the report, most of the savings from the existing energy policy between 2030 and 2050 stem from network spending reforms aimed at aligning supply sources closer to power lines and the elimination of carbon taxes. Researchers from the Conservative-aligned think tank argue that despite these changes, the overall energy system would still be 80% clean by 2050.

Conservative leader Kemi Badenoch emphasized that the plan represents a practical approach to climate change, prioritizing results over mere targets. She stated that the Conservatives aim to safeguard the environment, ensure energy security, and lower energy costs. In contrast, Labour leader Keir Starmer's shadow energy secretary, Claire Coutinho, is scheduled to address the cost of renewables and claim that the Onward report is the most comprehensive cost analysis of the electricity system produced in British politics.

Coutinho highlighted the report's findings as "remarkable" and criticized the government for lacking evidence-based decision-making. The report acknowledges that producing 524 million tonnes of cumulative carbon emissions would result in a cost of over £600 per tonne for eliminating the final gas emissions, more than twice the highest carbon price currently modeled by the energy department for 2050.

Additionally, the report warns of potential gas price volatility, estimating a 250% surge in 2040 that could add £6 billion to fuel costs. Energy Secretary Miatta Fahnbulleh criticized the Conservative plan, asserting that it would "tie Britain to the fossil fuel rollercoaster and keep bills higher for families." She emphasized Labour's commitment to investing in clean energy jobs, lowering electricity bill taxes to provide families with financial relief during the winter, and actively combating climate change to reduce bills in the long run.

Badenoch countered that the Conservatives' approach would jeopardize jobs and ultimately increase energy bills.