The Cost Of Switching From Gas To Electric
By Paul Homewood
Further to recent posts on the suggestion that domestic gas use would need to be phased out in order to meet decarbonisation targets, there is one further issue. As Catweazle pointed out, electricity is much more expensive than gas in the UK.
According to DECC, the price of electricity for domestic users averages 13.6 pence/KWh, compared with just 4.2 pence for gas. (These exclude standing charges). Average gas consumption is said to be 15000 KWh per household, giving an average annual gas bill of £630.
If there was a like for like switch from gas to electric, annual bills would rise by £1410. Put another way, gas consumption by domestic customers amounted to 342 TWh in 2013. Switching this to electric would, in theory, cost £32 bn.
This does assume like for like technology – gas to electric cookers or fires, for instance. It may be that heat pumps, for instance, would use less electrical energy than a gas boiler would, for a given amount of heat.
Nevertheless, it is clear that we are all in for substantially higher energy bills in a non-gas future, particularly since electricity prices are forecast to go much higher as subsidies for renewables increase even further.