Net Zero the Biggest Driver Behind Surging Electricity Bills – Guido Fawkes

Net Zero the Biggest Driver Behind Surging Electricity Bills

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Latest data from Net Zero Watch blows a hole in Red Ed’s claim that electricity bills have gone through the roof mainly because of the increasing gas prices on wholesale markets. In real terms, Ofgem’s April 2025 price cap is £326 higher than the equivalent cap in 2015. Net Zero Watch argues around three-quarters of the increase is down to green policies…

The report points out that Ofgem includes carbon taxes, the capacity market and contracts for difference subsidies as part of wholesale costs. Though Net Zero Watch argues these are policy-driven costs, and has broken them down to give a clearer view of what’s really contributed to rising bills over the last ten years:

• Capacity Market subsidies – £26
• Renewables subsidies (including CfDs and ROCs) – £83
• Carbon taxes – £39
• Insulation schemes – £11
• Social schemes – £9
• Smart Metres – £20

The data also highlights network costs – for transmitting and distributing electricity – have added £23, and balancing costs have increased by £26. The report says much of this is due to a rise in so-called constraint payments: money paid to wind farms to reduce output when the grid can’t handle it, and then to gas power stations to make up the shortfall. Last year bill payers paid over £1 billion to wind warms to switch off. The report concludes: “Arguments that gas prices are to blame are incorrect.“ It ain’t cheap going green…

Read the report in full below: