Thursday 13 April 2023

‘Energy bills could rise by £200 with hydrogen gas heating blend’

The recommendation to see natural gas blended with a 20% mix of hydrogen to heat homes will add almost £200 to the average household’s energy bills.

That’s what a group of campaigners, energy companies and thinktanks have said in a letter to the government, led by E3G.

E3G claims that hydrogen blending would see people’s energy bills jump up by £192 a year – in response to hydrogen champion Jane Toogood’s reported recommendation that blending should be implemented.

Blending would mean consumers need to use more gas because hydrogen doesn’t provide as much energy when it’s used partially, the letter claims.

The letter states: “[Blending] puts the early costs of building the hydrogen economy on the shoulders of consumers, who will bear the costs of higher energy bills and costs of conversion.”

It adds: “As hydrogen is more expensive than the gas currently used to heat most UK homes, a 20% blend can only raise consumer prices. Raising energy bills during a cost-of-living crisis is the wrong way to develop industrial demand for hydrogen.”

A decision is yet to be made on whether blending will take place but if it is approved, it could start from 2025.

The letter has been sent to Energy Security Secretary Grant Shapps.

A Department for Energy Security and Net Zero spokesperson said: “Protecting consumers is a top priority for the government, which is why we have been covering around half of the typical household’s energy bill. Value for money will be a key factor in determining whether to enable the wider rollout of blending on to the gas network.

“The government is working closely with Ofgem and industry to explore how hydrogen could be fairly incorporated in bills and any final decision on blending will be made alongside a decision on how best to protect consumers.”