The next government should make rebalancing of electricity and gas prices an urgent priority, in line with Chris Skidmore and RenewableUK’s Dan McGrail’s report published today, the MCS Foundation has said.

Chris Skidmore’s original Mission Zero report, published last year, recommended electricity prices should be “rebalanced” relative to gas prices by the end of 2024. This would help incentivise the uptake of heat pumps as well as reducing fuel poverty. The new report accordingly urges the next government to consult on such a rebalancing within its first 100 days.

David Cowdrey, Director of External Affairs at the MCS Foundation, said, “The UK has some of the highest electricity costs in Europe, in large part because of the levies that are placed on electricity but not on gas.

“Disproportionately high electricity prices are now one of the biggest barriers to heat pump roll-out in the UK.

“The next Government should make rebalancing energy costs a priority, to bring down electricity bills and make sure that a heat pump is always cheaper to run than a gas boiler.”

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Notes to editors

• Chris Skidmore and Dan McGrail’s “At a crossroads: Pathways to a Net Zero Future” report states that within the first 100 days of the new Parliament, the government should “Open a consultation on the rebalancing of levies between electricity and gas”
• The original Mission Zero report by Chris Skidmore stated that “The price of electricity needs to provide a clear signal to encourage use of low carbon technologies” and recommended that the Government should:
  • “Commit to outlining a clear approach to gas vs. electricity ‘rebalancing’ by end 2023/4 (depending on the fossil fuel prices), and should make significant progress affecting relative prices by the end of 2024. In outlining this approach, ensure that the distribution of the costs which make up energy bills are passed through to consumers, through their suppliers, in a way which is fair, affordable, and supports competition, decarbonisation and economic growth.”