The Office for Budgetary Responsibility has warned that the UK is vulnerable to future gas price hikes because of its failure to develop alternative energy supplies.
The OBR urged the UK to invest in its 2050 net zero carbon emissions targets to reduce the British energy crisis.
While the OBR estimated that about £327bn will be needed to reach net zero targets, it noted that the Government has so far only committed the equivalent of £22.5bn.
Richard Hughes, OBR chairman said: “This has left us particularly exposed to changes in wholesale gas prices and has already brought with it considerable fiscal cost.”
The OBR continued that the UK’s dependence on gas at the current level could be as expensive as completing the transition to net zero.
“We’ve historically been one of the leading investors in renewables in G7, total UK investment in low-carbon technology fell last year from 1.1 to 0.9 per cent of GDP in contrast to France and Germany,” Mr Hughes said.
He said it was a ‘puzzle’ why, given the change in relatively cheaper price of renewable energy compared to gas, more people weren’t investing more in energy saving technologies away from expensive gas boilers to cheaper alternatives.
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