Our insight paper Who pays for supporting the net zero transition? was highlighted in Renewable Energy Magazine. The insight paper highlights that the application of policy costs onto the electricity bill is a significant disincentive to electrify and transition to newer low-carbon heating technologies.
Dan Starman Lead Consultant at Cornwall Insight explained that there are very good reasons that policy costs were initially applied to electricity bills. However, the underlying economics of powering heat with electricity vs the counterfactual fuel of gas means the government should consider reform in the area.
Given the scale of the challenge that net zero presents, the speed of decarbonisation required to reach the target, and the fundamental shift needed in both the technologies consumers use and how they use them, policymakers will likely need to consider all available tools at their disposal to support the net zero transitionDan Starman