THE expert behind Energy Secretary Ed Miliband’s pledge to cut bills by £300 fears it will be wiped out by increasing electricity costs.
Economist Pawel Czyzak came up with the savings plan in 2023.
He told the BBC that if the cost of upgrading the electricity grid increased but wholesale prices don’t go down “then it’s going to be hard to generate savings”.
He added: “So then, yes, there is a risk of these savings being wiped out if we can’t get the actual electricity cost down, and that might happen if offshore wind is too expensive.”
He added: “I think it’s generally quite a tricky one because of the volatility around everything.
“Everything in this market is very volatile.
“So if you’re just looking for a fixed single number, it’s not that easy to deliver.”
It comes as Chancellor Rachel Reeves looks to bring down energy bills at the Budget, with an option to cut the five per cent VAT.
Mr Miliband told the BBC: “The whole of the Government understands we face an affordability crisis.”
The Department for Energy and Security and Net Zero said bringing down costs was “central to every decision we make”.
They added: “By making Britain a clean energy superpower, we are getting the UK off the rollercoaster of fossil fuel prices and onto clean, homegrown power that we control.”
BLAIR: SLASH ENERGY COSTS
BRITAIN should abandon its clean energy target and focus on cutting bills, Sir Tony Blair says.
The ex-PM’s think-tank warned ministers must target growth and lower bills over a rush to Net Zero by 2050.
It said: “The UK needs a full-spectrum energy strategy.”
