Report

Cooking on gas

This report from UK think tank Onward calls for a change in approach that places greater emphasis on affordability and energy security.

The report Cooking on Gas argues that a large share of the UK’s high energy prices is the result of policy choices rather than unavoidable market pressures.

It highlights how taxes, levies and regulatory costs attached to energy production, particularly those linked to decarbonisation policy, have pushed up bills for households and businesses. Measures such as carbon pricing, renewable support schemes and VAT on electricity generated from gas add significantly to the final price consumers pay, meaning bills are often much higher than the underlying cost of producing energy.

The report calls for a change in approach that places greater emphasis on affordability and energy security. It suggests the UK should focus on expanding domestic energy supply through a mix of nuclear power, competitive renewable generation and continued use of gas, while also reforming the way electricity markets and subsidy schemes operate.

Many of the proposed changes involve removing or redesigning policy costs within the current system so that prices better reflect the real cost of energy and become more manageable for households and industry.