Business advisory firm KPMG has cautioned that households may face higher energy bills for up to a decade as Britain strives to achieve its net zero targets while also dealing with soaring gas prices.
The shift towards green energy and the associated infrastructure upgrades are expected to be expensive and the cost may not be offset by the drop in gas prices.
Yael Selfin, the Chief Economist at KPMG, has warned that energy bills will remain high for the next five to ten years due to the added costs of transitioning to net zero.
She explained that the “transition to net zero is going to add cost one way or another to our energy bills.”
While she anticipates a drop in energy bills in July, Ms Selfin expects them to remain elevated for the foreseeable future.
She acknowledged that there may be other energy shocks, but believes that this will likely be the average equilibrium price.
A few days ago, Chris Skidmore, speaking at the Energy Institute’s International Energy Week, urged for a change in the narrative around the impact of net zero on the UK’s economy.
The former energy minister believes that the transition to net zero will not only benefit the environment but also make the country wealthier.
Skidmore has challenged the perception that the shift to renewable energy sources will lead to higher costs for households and businesses, emphasising that private investment companies will play a significant role in funding the country’s transition.