Electricity: Prices

(asked on 28th August 2026) - View Source

Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what assessment she has made of the potential impact of levels of electricity prices on household electrification.


Answered by
Polly Billington Portrait
Polly Billington
Parliamentary Under-Secretary of State (Department for Energy Security and Net Zero)
This question was answered on 8th September 2026

The Government recognises that electricity prices can affect households' decisions to adopt electrified technologies such as heat pumps. The Warm Homes Plan commits very clearly to making clean heating systems cheaper to own and run and exploring options to address the current price disparity between electricity and gas.

The Government has already taken significant action to reduce electricity bills for all consumers, including at the last Budget removing policy costs worth around £150 a year from the average household bill. In July, we initiated a further reduction by removing VAT applied to electricity bills, which is expected to take off around another £45 off the yearly Ofgem price cap.

It’s worth noting as well that heat pumps are three times as efficient as traditional fossil fuel boilers – Government analysis suggests a typical household could already see lower energy bills when using one installed well and alongside a suitable smart tariff.

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