Energy bills ‘could rise by £118 a year to fund government’s net zero plans’

Think tank says ‘regressive’ and ‘unfair’ hydrogen levy ‘can be avoided’ with taxes on carbon heavy industry

Energy bills could rise by around £118 a year for the average household under plans being considered by the government to meet its net zero targets and improve gas and electricity supply security, a think tank has warned.

Downing Street is supporting the production of low-carbon hydrogen gas in its drive to reach net zero emissions by 2050.

Under provisions set out in the Energy Bill, costs could be added to household bills from 2025 - on top of subsidies for other green energy, such as wind farms.