Electricity: Prices
The question
To ask the Secretary of State for Energy Security and Net Zero, what assessment she has made of the potential impact of levels of electricity prices on household electrification.
Answered by Department for Energy Security and Net Zero
The Government recognises that electricity prices can affect households' decisions to adopt electrified technologies such as heat pumps. The Warm Homes Plan commits very clearly to making clean heating systems cheaper to own and run and exploring options to address the current price disparity between electricity and gas.
The Government has already taken significant action to reduce electricity bills for all consumers, including at the last Budget removing policy costs worth around £150 a year from the average household bill. In July, we initiated a further reduction by removing VAT applied to electricity bills, which is expected to take off around another £45 off the yearly Ofgem price cap.
It’s worth noting as well that heat pumps are three times as efficient as traditional fossil fuel boilers – Government analysis suggests a typical household could already see lower energy bills when using one installed well and alongside a suitable smart tariff.
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