Green Tories have warned that Britain’s “perilous reliance” on gas could cost taxpayers billions of pounds.
Future price shocks could cost taxpayers between up to three percent of GDP a year, the Office for Budget Responsibility (OBR) has found.
Alexander Stafford, Tory MP for Rother Valley, said: “We are far too reliant on gas for power and heating. As this analysis warns, we need to switch to cleaner forms of energy like offshore wind and nuclear, or taxpayers could face an enormous bill to shield our economy from future gas price spikes.
“Doubling down on clean energy is more than just a way to tackle climate change. It’s the best way to protect taxpayers from another energy crisis, winning green investment and creating jobs in the process.”
Recurring gas price spikes could add around 13 percent to public debt by 2050-51.
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This is more than double the total cost of public investment to reach net zero by 2050 which would be six percent of GDP.
Conservative Bim Afolami MP, a member of the Conservative Environment Network (CEN), said: “This report shows that our economy is perilously reliant on gas.
“It’s why inflation is sky-high, and economic growth is sluggish. But with our world-leading offshore wind industry, we can cut people’s bills, create jobs and shield families and businesses from future energy crises.
“To do this, we need to win more investment by offering tax breaks and axing planning bureaucracy so it doesn’t take 13 years to build a cheap wind farm off our coast.”
The UK remains one of the gas-dependent economies in Europe and is more exposed to sudden changes in prices.
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The cost of gas increased thirteen-fold after the Russian invasion of Ukraine.
Sam Hall, director of CEN, said: “This is a timely warning that the UK cannot be energy secure while heavily reliant on oil and gas.
“As long as our economy depends on fossil fuels, we will be exposed to price shocks in international markets. Accelerating the rollout of clean energy is not just about tackling climate change but protecting families and businesses from future energy crises.
“As this report shows, the cost to the exchequer of future fossil fuel price spikes could be more than the public investment required to reach net zero. That’s why it’s essential that delivering the net zero transition remains a top priority for the government even while energy prices are coming down.”
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