The Government should further prioritise reducing electricity costs by removing appropriate policy costs from electricity bills and funding them through general taxation. This would improve affordability for households and businesses, strengthen incentives for the electrification of heat and transport, and avoid placing additional costs on households that are not yet able to switch away from gas. Shifting policy costs from electricity to gas bills may improve price signals in the short term, ...

The Government should further prioritise reducing electricity costs by removing appropriate policy costs from electricity bills and funding them through general taxation. This would improve affordability for households and businesses, strengthen incentives for the electrification of heat and transport, and avoid placing additional costs on households that are not yet able to switch away from gas. Shifting policy costs from electricity to gas bills may improve price signals in the short term, but would risk unfairly penalising households who face practical, financial or housing constraints on electrification. (Recommendation, Paragraph 130) Type: recommendation | Number: 32 | Response status: response_pending