UK climate watchdog urges cheaper electricity, faster heat pump rollout

The UK's Climate Change Committee called on the government to make electricity cheaper for consumers to accelerate the country's transition to net-zero emissions, as the independent advisory body released its first assessment of the new administration's climate progress.

In a report published June 25, the government's climate adviser outlined 10 urgent priority actions needed to help the UK meet legally binding emissions targets, while stating that 39% of required emissions reductions lack credible plans or face significant risks.

The government climate adviser acknowledged some of the progress made due to bold policy decisions, but urged the government to do more, especially on policies related to electric vehicle and heat pump rollouts, as they remain slightly below what is needed.

The committee said reducing electricity costs would help households feel the benefits of climate action while speeding up the adoption of clean technologies like heat pumps and electric vehicles. Credible plans cover 61% of required emissions cuts to 2030, but significant concerns remain around heat pump deployment and industrial electrification.

Removing policy costs from electricity prices could reduce the domestic electricity-to-gas price ratio from around 4:1 currently to between 2:1 and 3:1, bringing the UK in line with countries like Ireland and France that are ahead on heat pump deployment, the report said.

However, the government has only committed to consulting on electricity pricing reform without setting any timetable, prompting the CCC to call for urgent action on its preferred option.

New industrial strategy

This comes a few days after the UK government released its new Industrial Strategy, which is centered on reducing the power bills for energy-intensive firms by 25% for the decade to 2035.

Over 7,000 British manufacturing businesses in sectors including automotive, aerospace and chemicals could see their electricity rates reduced by up to GBP40/MWh from 2027 through the new British Industrial Competitiveness Scheme.

UK greenhouse gas emissions fell 4% in 2024 to 371 million mtCO2e, driven by reductions from the electricity and industrial sectors, according to government data.

Emissions were down 54% compared to 1990 levels, which many countries use as a key reference year.

The reduction was driven by the electricity supply and industry sectors, including the closure of the UK's last coal-fired power station at Ratcliffe-on-Soar in October 2024, though this was partially offset by increased aviation emissions.

The committee's priority recommendations include providing confidence and certainty to scale heat pump deployment in existing buildings, implementing regulations to prevent new homes from connecting to gas grids, and accelerating the electrification of industrial heat processes.

Over 80% of required emissions savings between now and 2030 need to come from sectors other than energy supply, with surface transport alone contributing almost 30% of the required reduction through widespread electrification.