Plan to ramp up heat pump and EV use under threat as UK electricity price doubles

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Britain’s switch to greener energy is wobbling as new figures show the country is lagging behind most others in its use of electricity to power cars, homes and industry – with the cost doubling over 20 years.

The Government is pushing households to consider green technology such as rooftop solar panels and electric vehicles which will reduce the UK’s dependence on gas for home heating and petrol to power cars.

Energy Secretary Ed Miliband’s plan to reach net-zero carbon emissions then relies on using an electricity grid powered mostly by renewable sources to provide the energy consumed.

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However, data from across three dozen countries compiled by the pro-growth pressure group Britain Remade shows that Britain’s progress in switching to electric-powered technology is relatively poor.

The UK’s electricity use per person has fallen by 22 per cent since 2000, faster than every other country on earth apart from Yemen, Zimbabwe, Jamaica, Tajikistan and Syria – all much poorer and in some cases devastated by civil war.

While some of that decline is likely to be down to electrical devices becoming more energy efficient, this should have been offset by the growing uptake of electric cars, heat pumps and industrial processes switching to electric power.

Overall, 17.5 per cent of Britain’s energy consumption is driven by electricity. That compares to 50 per cent in Sweden and Norway, 32 per cent in France and 23 per cent in China.

Other countries which are ahead of the UK in electricity usage include Germany, Ireland, Italy, Japan and Spain – and even the US, despite a perception that Americans still rely on fossil fuels more than other places.

It would take until 2086 at the current rate for Britain to catch up with China’s electricity usage and 300 years to reach the level of Sweden, according to Britain Remade.

Forecasts by the Government have proved optimistic

Official forecasts made by the Government have repeatedly proved overly optimistic, predicting a level of electricity adoption that has been much higher than the eventual outturn.

Britain Remade has blamed the cost of electricity for the disappointing pace of change, pointing out that the price for households has more than doubled in two decades even after controlling for inflation – while industrial users are paying 175 per cent more.

Electricity prices are relatively high in Britain because of factors including the difficulty of building new energy infrastructure due to strict planning regulations, and a pricing structure which means that wholesale costs are usually set by the cost of natural gas rather than renewables. The Government also puts additional costs on to electricity bills to pay for the green transition without having to use taxpayers’ cash directly.

The think-tank’s CEO Sam Richards said: “Electrification is how Britain wins. It is how we cut emissions, cut bills and compete for the industries of the future – heat pumps in our homes, electric cars on our roads, the data centres and factories that will power the next economy. Cheap, abundant electricity is the foundation of all of it.

“But we have made electricity so expensive that our own households and our own factories are being priced out of using it. Use per person has fallen further here than anywhere on Earth outside countries at war or under sanctions.

“And still, Whitehall forecasts a surge in demand that never comes. We are building a grid for a country that doesn’t exist.”

The Government has promised to change planning laws to make it easier to build the infrastructure that can boost energy supply and bring down prices, as well as subsidising households to switch to heat pumps and install solar panels and battery storage.

The Department for Energy Security and Net Zero was approached for comment.

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