Britain must lower power prices to meet climate goals, advisors say​

By Susanna Twidale

LONDON (Reuters) -Britain must cut its electricity prices to speed up the adoption of emission curbing technology, such as electric vehicles and heat pumps, to meet its climate targets, the country's climate advisers said in a progress report on Wednesday.

Britain aims to reach net zero emissions by 2050, which will require the electrification of sectors such as heat and transport, now mostly powered by fossil fuels, while it is also grappling with high electricity costs.

"By far the most important recommendation we have for the government is to reduce the cost of electricity both for households and businesses," Piers Forster, interim chair of the Committee on Climate Change said, in a briefing on the annual report.

"If we want the country to benefit from the transition to electrification, we have to see it reflected in the utility bills," he said.

Britain's energy regulator Ofgem, which sets a cap on domestic energy prices, reduced the limit by 7% from July. However it remains around 50% above levels in the summer of 2021, before Russia’s invasion of Ukraine sent gas prices soaring and sparked an energy crisis in Europe.

The Committee publishes annual reports about the government's progress towards its climate targets.

With more action, Britain can achieve a 68% reduction in emissions between 1990 and 2030, it has pledged under the Paris climate agreement, the report said.

It made 43 priority recommendations including lowering energy costs, speeding up grid connections for new clean power projects, introducing regulations mandating only low-carbon heating systems for new homes, and publishing a net zero skills action plan.

Britain’s emissions have already fallen around 54% from 1990 thanks to increased renewable power capacity and the closure of its coal-fired power plants.

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(Reporting By Susanna TwidaleEditing by Tomasz Janowski)