London Daily

Focus on the big picture.
Thursday, Aug 20, 2026

Energy bills may rise again without government plan to deliver 2035 clean power target, NAO warns

Energy bills may rise again without government plan to deliver 2035 clean power target, NAO warns

A missing plan to decarbonise Britain's electricity network is costing households, the report warned. The NAO audit prompted calls for government to lift a de facto ban on onshore wind.
Household bills could rise if the government further delays its plan to rid the power network of polluting fossil fuels by 2035, the National Audit Office (NAO) has warned.

Energy officials committed to the target almost 18 months ago, but their plan to deliver it was delayed by the energy crisis as they focussed instead on tackling soaring bills, the auditors said.

However today they warned it was not clear when the new energy and net zero department would come up with a plan to decarbonise the grid, which could drive up household bills even further.

"The longer it takes before government finalises its delivery plan, the greater the risk that it won't achieve that ambition to decarbonize power by 2035, or that doing so will cost consumers more," warned Simon Bittlestone, NAO's director of value for money studies.

"Decarbonizing power is really the backbone of achieving net zero, as we're all likely to switch to electric vehicles and potentially use electricity to heat our homes, but it will require a step change investment and modernisation," he told Sky News.

Generating electricity accounts for 13% of emissions in the UK. Some 40% of electricity is generated by fossil gas.

Although the country has so far decarbonised faster than any other G7 country, according to government data, demand for electricity is set to soar 60% by 2035 as the economy continues to shift away fossil fuels.

Meeting that demand requires an enormous surge in renewable wind and solar power, including by building three times as much offshore wind capacity in eight years as in the last two decades.

The government should prioritise lifting an effective ban on onshore wind, urged Stuart Dossett, senior policy adviser at think tank Green Alliance.

"Onshore wind is one of the quickest to build and cheapest forms of electricity we have," he told Sky News.

The shortfall in the UK is "slowing us down from moving as quickly as we need to move to cut carbon emissions and to bring energy bills down," added Mr Dossett. "Renewables are significantly cheaper than gas, and gas is what is driving up the price of energy".

Recent UK prime ministers have changed their minds on onshore wind, and Rishi Sunak's administration is currently running a consultation on relaxing rules.

Costs to consumers

The report detailed how Britain's outdated grid is already costing taxpayers, and will only increase without a plan.

That's because when power generated from a plant exceeds demand, or what the grid can accommodate, energy companies have to limit their output, which costs money that is paid by the consumer.

The grid also needs upgrading and expansion so it can transmit power from where it is made, for example in Scotland, to where it is needed, potentially in Cornwall.

The auditors warned the government must make up its mind which technologies will be used to power the UK during cloudy and calm days, including batteries for short-term power, longer duration energy storage like compressed air, hydrogen from renewables and nuclear.

A Department for Energy Security and Net Zero spokesperson said since the energy crisis set in last year "our focus has been on delivering essential cost of living support, including paying half a typical household's energy bills this winter, because this is the primary focus for families across the country".

"We have launched world-leading blueprints, such as our British Energy Security and Net Zero Strategies, with many plans already implemented to ensure we are on track to achieve our 2050 net zero target," they said.

"Our targets are ambitious, however, we haven't taken our foot off the pedal and our commitment to decarbonise the UK's electricity system by 2035 remains resolute."
Newsletter

Related Articles

0:00
0:00
Close
Suspected People Smuggler Arrested After Investigation Identified Him
Children's Doctors Warn That Vaping Can Lead Young People to Smoking
Prince Harry and Meghan to Move Back to Britain With Their Children
Hundreds of Thousands of Students Receive GCSE and Vocational Results Across England, Wales and Northern Ireland
Here Is What Can Never Happen in Your Country: Taiwan Is Giving Money to All Its People Because It Collected Too Much Tax
UK Inflation Rises to 2.9% as Energy Bills Jump
UK Issues New Conduct Guide for Asylum Seekers on Consent and Respect
Moderna Shares Surge After Positive Personalized Skin Cancer Trial Results
UK Markets Watch US National Debt Surpass Forty Trillion Dollars
UK Broadcasters Urge Government to Invest in Digital Participation and Broadband
CVC Capital Partners and Standard Life Launch Two Billion Pound Pension Risk Transfer Venture
UK Private Sector Productivity Growth Accelerates in Second Quarter
UK Foreign Secretary Ed Miliband Condemns Israeli E1 Settlement Tender
UK Watchdog Investigates Trainline, Virgin Atlantic and RED Driving School Over Hidden Fees
Prince Harry and Meghan Markle Plan Move to Private Home Outside London
England and Wales Have Fewer Than 1,800 Prison Places Left for Men
UK Retail Sentiment Improves as Summer Spending Boosts Consumer Confidence
UK Aid Cuts Draw Warnings From Charities Over Humanitarian Consequences
UK Financial Conduct Authority Issues Guidance for Motor Finance Redress Scheme
UK Met Office Launches Aviation Programme to Reduce Climate Impact of Persistent Contrails
Former UK Civil Service Chief Received Record 500,000 Pound Severance Payment
West Midlands to Bring Bus Network Under Public Franchising Model
UK Government Drops Plan to Relax Affordable Housing Requirements After Backlash
UK Reaffirms Military Support for Ukraine Despite Russian Hybrid Warfare Threats
UK Technology Sector Expands Nearly 8 Percent as Digital Industry Outpaces Wider Economy
UK Drought Threatens Harvests Across England and Wales as Food Inflation Risks Persist
UK Government Pledges 442 Million Pounds to End Rough Sleeping by Christmas
UK Government Signals Willingness to Reconsider Digital Services Tax Amid US Tariff Threats
UK Inflation Rises to 2.9 Percent as Energy Costs Threaten Economic Recovery
NHS Hospitals Cancel Surgeries as Extreme Heat Pushes Ward Temperatures Above 40 Degrees Celsius
UK Heatwave Forces Emergency Measures as Wildfire Risk, Hospital Disruption and Drought Intensify
A Sleepless Night on Wall Street: Nasdaq to Begin Nearly Round-the-Clock Trading
"The First in the World": 69-Year-Old Protested Artificial Intelligence—and Went to Jail
Ukraine's Ousted Defence Minister Calls for Wartime Presidential Election
UK Marks Ten Years of Night Tube as London Weekend Usage Exceeds Eighty-One Thousand Journeys a Night
Met Office Issues Thunderstorm Warnings Across Northern Ireland Over Flash-Flood Risk
Frasers Group Raises Stake in Hugo Boss to Nearly Forty-Eight Percent
Scottish Clyde Marine Pilots Prepare for Strike That Could Disrupt Glasgow and Greenock Shipping
Twenty Passengers Injured After Southern Train Derails Near Lewes in East Sussex
Government Rules Out High-Speed Rail Revival Between West Midlands and Northern England
West Midlands Bus Network Returns to Public Ownership in Twenty-Four Million Pound Deal
UK Competition Watchdog Targets Trainline, Virgin Atlantic and RED Driving School Over Drip Pricing
Northern Ireland Health Minister Mike Nesbitt Resigns After Dispute Over Causeway Hospital Surgery Closure
UK Long-Term Government Bond Yields Rise to Five Point Eight Five Percent as Borrowing Costs Surge
UK Government Overhauls Planning Rules to Push Housing Development Near Major Transport Hubs
UK Health and Economic Pressures Highlight Wider Strain on Households and Public Finances
UK Prime Minister Andy Burnham Reaffirms Full Support for Ukraine Amid Russian Warnings
Sainsbury’s Suspends Live Facial Recognition at London Store After Customer Misidentified
Artists Urge UK Prime Minister Andy Burnham to Reject New North Sea Oil and Gas Licensing
UK Government Awards Four Hundred and Fifty-Six Million Pound Civil Service Training Contract to EY and KPMG
×