A lack of investment in solar panels, insulation, heat pumps and electric cars over the last decade added up to £1,900 to household bills in 2023, up from £1,850 in 2022.
That’s according to new analysis from the Energy and Climate Intelligence Unit (ECIU), which suggests average UK homes (rated Energy Performance Certificate D) without decent insulation, cost an extra £320 in energy bills in 2023 compared to better-insulated homes (rated EPC C).
Investment in insulating homes was reduced in 2013 and the rate at which homes are being improved is currently at its lowest level for more than a decade, according to the report.
The ECIU found that if government insulation policies had been maintained, cumulative energy bill savings could have been £12 billion by the end of 2023.
Similarly, speeding up the deployment of renewables, such as offshore wind, could have cut bills by almost £20 billion over the past few years to the end of 2023.
Dr Simon Cran-McGreehin, Head of Analysis at ECIU, said: “Investment in these net zero technologies brings returns in the form of lower energy bills, reduced vulnerability to volatile international gas markets and the prospect of real energy independence for the UK.
“A lack of investment leaves families colder and poorer and has left the country in a real hole in the gas crisis at a cost of tens of billions of pounds.”
A Department for Energy Security and Net Zero spokesperson told Energy Live News: “We do not recognise these highly speculative figures, they ignore the fact the proportion of homes in England with an EPC rating of C or above has risen from just 14% in 2010 to almost half today.
“We are helping families to make changes, increasing the boiler upgrade scheme by 50% – making it one of the most generous in Europe. Our plan is working and applications are now up by nearly 50% compared to last year.
“The UK is also a world leading renewables sector – home to the five largest operational wind farms in the world, with renewables accounting for over 40% of our electricity, up from 7% in 2010.”
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