Executives from Octopus Energy and EDF Energy have proposed that current green levies should be moved from electricity bills to gas bills as a strategy to encourage families to adopt cleaner energy technologies.
Speaking on BBC Radio 4’s Today Programme, Greg Jackson of Octopus Energy and Simone Rossi of EDF Energy discussed the potential benefits of this change.
Mr Rossi highlighted two main advantages of electricity: its potential for domestic production, which offers energy independence, and its ability to be produced with low carbon emissions, reducing environmental impact.
He suggested that transferring levies to gas bills would incentivise consumers to switch to electricity, aiding the transition to cleaner energy.
A key challenge discussed was the potential financial burden on households dependent on gas.
Greg Jackson responded that savings on electricity bills could offset the increased cost of gas, making the transition more manageable.
He said: “Every household that’s got gas also has electricity. And electricity will be going down in price by almost as much as gas would go up.
“So, typically, if you’re an electric only household, you might save 140 a year. If you’ve got both fuels, then it might cost 100. One or two pounds a month extra.
“And if you compare that to the fact that during the energy crisis, our addiction to gas added over a hundred pounds a month to our energy bills, we have to escape that addiction.
“Until we move more quickly to electrifying things, we’re prey to those kind of crises, those fossil fuel crises, without any say in our own destiny.”
He also mentioned the growing adoption of heat pumps, which are seen as a crucial technology for reducing reliance on gas heating.
The discussion also covered the broader context of the government’s plans to build 1.5 million new homes and the need for planning reforms to support the necessary upgrades to the national grid.
Mr Jackson pointed out that community benefits, such as discounted electricity for those living near wind turbines, could help gain local support for new energy infrastructure projects.
The Founder and Chief Executive Officer of Octopus said: “We introduced a scheme where if you live near some of our wind turbines, we’ll give you 20% off your electricity when it’s windy, 50% when it’s very windy.
“As a result, 26, 000 individuals and communities contacted us to ask for wind turbines near them.
“If a supermarket wants to build near you, you have a choice as a community. Do we want the cheap products they’re going to sell or would we rather leave our countryside untouched?
“That’s a debate that people have been having around the country for decades. Sometimes they choose a supermarket. Sometimes they don’t. We can have exactly the same conversations with things like electricity.”
EDF and Octopus launched the Electrify Britain campaign on Tuesday, advocating for new homes to be equipped with cleaner heating appliances such as heat pumps instead of gas boilers.
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