The UK is inadequately prepared for a potential future energy crisis, primarily due to its heavy reliance on gas for heating and electricity, according to a new report from the Energy Crisis Commission.
This expert group, comprising representatives from organisations such as Energy UK, the CBI, Citizens Advice, and National Energy Action, was established to evaluate the impacts of the recent energy crisis on households and businesses while recommending measures to improve the country’s resilience against similar events in the future.
The report indicates that British households and businesses have suffered more than many other European nations due to this dependence on gas.
The UK ranks as the second most reliant country in the European Union for gas heating and is joint fifth for gas electricity generation.
The Commission highlights that the slow pace of improvements to the energy efficiency of leaky and damp housing, delays in implementing new building standards, and missed opportunities to expand renewable energy sources, such as onshore wind, have compounded the difficulties faced by consumers.
Furthermore, the report reveals that poorly targeted support schemes have disproportionately affected the most vulnerable households, driving up the overall cost of the energy crisis and adding to national debt.
The impact on many households has been severe, with approximately 7.5 million now classified as living in fuel poverty and total debts owed to energy companies reaching around £3.5 billion.
The findings indicate that nine in ten households have cut back on their energy use, while nearly one in ten businesses have had to cease operations either partially or entirely in response to rising costs.
Despite the urgent need for change, the Commission asserts that progress in reducing the UK’s reliance on gas has been insufficient.
It calls for a clear strategy to transition away from fossil fuels, particularly gas, and emphasises the importance of increasing public investment in home energy efficiency.
This investment would target improvements in the many cold, damp and unhealthy homes across the country.
The report advocates for strengthened energy efficiency regulations in the private rented sector, as well as the implementation of the Future Homes Standard for new builds.
Moreover, the Commission urges an accelerated rollout of electric heat pumps and a comprehensive plan for phasing out gas heating.
It calls for the expansion of clean power generation through a diverse array of technologies, ambitious renewable energy goals, and improvements to grid infrastructure.
The report also stresses the need for targeted support for businesses and energy-intensive industries to facilitate their decarbonisation efforts and suggests urgent reforms to the electricity market.
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