Net zero will cost households an extra £1,400 A YEAR by 2030 and risks ‘serious economic damage’

NET zero plans to update Britain’s energy network will cost the average household more than £1,400 per year, new research claims. A report by right-leaning think tank the Prosperity Institute estimates plans to decarbonise the electricity grid will cost taxpayers £40billion by 2030. Subsidies on wind, solar and nuclear power are set to rise from £11.8billion to almost £15billion by the end of the decade, it said. At the same time, the think tank said the cost of upgrading the grid to switch more to renewables will cost an estimated £25billion. Sign up for the Money newsletter Thank you! The projection doesn’t include other green policies such as investing in carbon capture and storage, as well as green hydrogen. This is much higher than estimates from the Government’s climate advisers, the Climate Change Committee (CCC). The CCC has estimated reaching net zero will cost about £4billion a year. The UK Government has committed to reaching net zero by 2050, which means adding no more greenhouse gases to the atmosphere than the amount you take out. It’s the world’s key strategy for fighting climate change, and nearly 200 countries have committed to achieving it. However, many experts have argued there needs to be a balance between achieving net zero and keeping costs affordable for average households. Most read in Money Brits have already been hit by rocketing food, energy and fuel bills this year as the Iran war pushed up prices globally. The report from the Prosperity Institute warns the Government’s spending trajectory on net zero policies is “unsustainable” giving the growing pressures on public finances. It has said the current plans could cause “serious economic damage”. The think tank has called on Andy Burnham to “reorientate” energy policy instead towards “affordability and security of supply”. This would involve renegotiating contracts with renewable energy firms and removing existing subsidies. It also argued that surging electricity prices are to do with the switch to renewables. “Despite persistent claims that gas is to blame for high electricity costs, it is renewables that have driven a massive increase in the costs of running the electricity system,” it claimed. “The cost of subsidies and grid integration has risen sixfold since 2010 to almost £20billion per year. Official forecasts show this problem is going to get significantly worse.” However, other experts say that stopping Britain’s reliance on fossil fuels will cost less in the long-term. They say investing in British renewables will make the country less dependent on foreign gas. The CCC has said achieving the net zero target by 2050 will cost less than a single oil shock. It has pointed to the wars in Iran and Ukraine as causing gas prices to surge and pushing up energy bills for consumers. It has also said previously that some estimates have not taken into account the cost of paying for fossil fuels needed for energy if net zero is not achieved. Comment now