The UK could face far greater costs from future fossil fuel price shocks than from the transition to clean energy, according to new analysis from the Climate Change Committee (CCC).
The independent climate advisers say a single energy price spike similar to the one triggered by Russia’s invasion of Ukraine in 2022 could cost the UK economy around £222 billion, roughly double the total net cost of moving to net zero between now and 2050.
The findings come as oil and gas prices have surged again since the start of the American / Israeli attacks on Iran and conflict in the Middle East, underlining the risks of relying on globally traded fossil fuels.
A spokesperson for the End Fuel Poverty Coalition said:
“Households have already learned the hard way that fossil fuel price shocks come with a very real cost.
“With oil and gas prices already surging again because of the conflict in the Middle East, families are being reminded just how exposed the country remains to volatile global markets. If these higher prices persist, we are likely to see a fresh hike in energy bills from 1 July as the impact feeds through to the next price cap.
“It remains to be seen how severe the current price spike will be for households, but it underlines that the only lasting protection is to cut our reliance on fossil fuels through better insulated homes, homegrown renewable energy and fairer energy pricing so bills are no longer dictated by global gas markets.”