UK Faces Renewed Risk of Surging Energy Bills Amid Gas Dependency, Experts Warn

Britain risks a repeat of soaring energy bills unless it moves swiftly away from its dependence on gas, according to the Energy Crisis Commission. The expert panel, comprised of industry and consumer representatives, has warned that the country remains "dangerously underprepared" for future energy crises due to its reliance on gas for both electricity and home heating.

The commission's first report emphasized that the UK has not made sufficient progress in insulating homes or deploying low-carbon alternatives like heat pumps since the 2021 energy crisis. This crisis saw gas prices skyrocket, leading to the collapse of 29 household suppliers and exacerbated by Russia’s 2022 invasion of Ukraine, which further strained global energy supplies.

Urgent Need for Energy Transition

Adam Scorer, CEO of the fuel poverty charity National Energy Action, stressed that the threat of future crises is "real" and would disproportionately affect vulnerable households. The report noted that British households were hit harder by energy price hikes than many other European countries due to the UK’s significant reliance on gas. Britain ranks second in Europe for gas dependency in home heating and fifth for electricity generation.

The commission criticized the government's response to the crisis, particularly its costly but "poorly targeted" support measures, which cost over £78 billion yet still left 7.5 million households in fuel poverty. Furthermore, energy customers are burdened with £3.5 billion in debt to suppliers.

Gillian Cooper, a senior figure at Citizens Advice, lamented that "underpreparedness and missed opportunities" contributed to the energy market collapse, pointing to failures in energy supplier practices and insufficient green energy initiatives.

Repeated Energy Shocks

David Laws, chair of Energy UK and the Energy Crisis Commission, warned that energy price shocks have occurred regularly over the past 50 years and will likely continue. He argued that the UK is still not equipped to handle the inevitable future disruptions to global oil and gas markets.

The report called for urgent action to shift away from gas. This includes enhancing home energy efficiency with measures such as better insulation and stricter energy standards, particularly in the rental sector, where many properties remain poorly insulated. Additionally, the commission urged the rollout of heat pumps and other low-carbon heating technologies, as well as a broader transition to renewable energy sources for electricity generation.

Government Response and Industry Support

Louise Hellem, chief economist at the Confederation of British Industry (CBI), highlighted the economic fallout of the energy crisis, which affected nearly all sectors, from small businesses to heavy industry. She emphasized that addressing the UK's vulnerability to price spikes is critical to safeguarding both consumers and the broader economy.

In response, Ed Miliband, the secretary of state for energy security and net zero, underscored the government’s commitment to transitioning the UK towards clean energy. He pointed to recent actions by the Labour government, including lifting the nine-year ban on onshore wind projects, initiating successful renewable energy auctions, and implementing measures to help lift renters out of fuel poverty.

"This report shows industry experts support making Britain a clean energy superpower, which is a core mission of this Labour government," Miliband stated, emphasizing the need for decisive action following what he described as "catastrophic failures" under previous Conservative leadership.

Conclusion

The Energy Crisis Commission’s report serves as a stark reminder that Britain’s continued reliance on gas leaves the country exposed to volatile energy prices. The panel’s recommendations, including improving energy efficiency and accelerating the transition to renewable energy, aim to protect households and businesses from future shocks. The UK government faces mounting pressure to act swiftly to secure its energy future.