London Daily

Focus on the big picture.
Friday, Jul 10, 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
University College London Report Proposes Replacing Council Tax and Stamp Duty With National Property Tax
Treasury Places Amazon, Google, Microsoft and Oracle Under New UK Financial System Oversight Rules
Severe Heatwave Drives Dangerous Ground-Level Ozone Pollution Across Two Thirds of European Union
Westminster in Freefall as Farage's By-Election Gamble Triggers Broader Systemic Crises
Institutional Fractures and Political Volatility Reshape Britain's Domestic Landscape
Deadly Fire, Health Emergencies and Political Upheaval Shape a Volatile Global News Cycle
UK Energy Strategy Focuses on Storage and Offshore Wind to Support Renewable Transition
Regional Governments Gain Greater Role in Britain’s Infrastructure and Economic Strategy
Britain Strengthens Technology Sovereignty Through Tougher Artificial Intelligence Competition Rules
UK Government Expands Artificial Intelligence Use Across Public Services Despite Privacy Debate
UK Universities Warn of Financial Pressure After Sharp Fall in International Student Enrolment
Welsh Government Completes Rail Nationalisation With One Point Five Billion Pound Modernisation Plan
Northern Ireland Records Export Growth as Companies Benefit From Dual UK and EU Market Access
Greater Manchester Launches Two Billion Pound Plan to Convert Empty Commercial Sites Into Housing
National Grid Connects Europe’s Largest Battery Storage Facility in Yorkshire
UK Defence Ministry Plans Royal Navy Autonomous Fleet Deployment to Indo-Pacific
Scotland Approves Europe’s Largest Floating Offshore Wind Project Near Aberdeen
Competition and Markets Authority Blocks Forty Billion Pound Technology Deal Over AI Security Concerns
UK Launches Five Hundred Million Pound Artificial Intelligence Network for National Health Service Diagnostics
Bank of England Signals Possible Interest Rate Cuts After Inflation Falls Below Target
UK Government Unveils Major Wealth Tax Reform to Fund National Health Service Infrastructure Expansion
Flight Instructor Jumped to His Death — Student Landed the Plane: "You Know What You Need to Do"
The Physical and Electronic Barriers Disrupting Domestic Wireless Networks
France and Morocco Open World Cup Quarter-Finals as Collina Defends Refereeing
Prince Harry Suffers Major Court Defeat in Legal Battle Against Daily Mail Publisher
Bonnie Tyler, Welsh Singer Behind Total Eclipse of the Heart, Dies at 75
Barclays and PwC Report Examines Economic Opportunities from Financial Asset Tokenisation
Pound Sterling Strengthens as Investors Anticipate Further Bank of England Rate Increases
British Business Bank Invests Twenty-Seven Million Pounds in Kraken Technology Defence Expansion
UK Business Secretary Peter Kyle Backs State Investment Strategy Inspired by US Approach
UK Electricity System Issues Margin Notice as Heatwave Tightens Evening Supply Outlook
Labour Leadership Contest Opens as Andy Burnham Emerges as Expected Sole Candidate
Tech Pulse: The Future of AI and Screen Culture
Global News Briefing: Escalating Geopolitical Tensions and Corporate Shakeups
Global News Brief: Escalating Conflicts, Public Health Crises, and World Cup Drama
Rare Early Copy of US Declaration of Independence Found in British Archive
Cornish Language Revival Gains Momentum Through Schools and Community Programs
UK Authorities Face Criticism Over Prisoner Early Release Safeguards
Clacton By-Election Set After Nigel Farage Resigns Seat to Trigger Contest
Government Agencies Review Long-Term Fiscal Risks from Aging Population and Low Productivity
UK Heatwaves Expose Pressure on Public Transport and Housing Infrastructure
UK Government Prepares Welfare Review Amid Debate Over Personal Independence Payment Reform
UK Government Expands Rapid Endometriosis Testing Across NHS Services
Vistry Group Issues Profit Warning as UK Housing Market Faces Continued Pressure
Virgin Media Receives Record Twenty-Eight Million Pound Fine Over Contract Cancellation Failures
Office for Budget Responsibility Warns UK Public Finances Face Long-Term Pressure
UK Watchdog Warns Regional Income Gap Has Barely Narrowed in Three Decades
IMF Raises United Kingdom Growth Forecast as Inflation and Energy Pressures Ease
UK Government Launches Regulatory Reform Bill to Speed Up Commercialization of Innovation
Prince Harry Loses Privacy Lawsuit Against Daily Mail Publisher After High Court Rejects Claims
×